What the NAR Settlement Means for Home Sellers: Key Insights
NAR Settlement for Home Sellers:
Selling a home involves many decisions, and having the right guidance is essential. Agents who are REALTORS® are trusted professionals who can help you navigate the complexities of the selling process. The recent settlement by the National Association of REALTORS® (NAR) has introduced several changes related to broker commissions that are important for sellers to understand. Here’s a clear breakdown of what these changes mean for you as a home seller.
1. Key Changes for Home Sellers
The NAR settlement has resulted in specific updates that impact how sellers interact with buyer brokers and manage commissions. Here’s what you need to know:
- Offering Compensation to Buyer Brokers:
- As a seller, you still have the option to offer compensation to buyer brokers. This can be a strategic move to market your home and make your listing more appealing to potential buyers.
- Disclosure of Payments to Buyer Brokers:
- Your agent is now required to provide you with a clear, written disclosure and obtain your approval before making any payment or offering compensation to a broker representing a buyer.
- This disclosure must be presented to you in writing before any payment or agreement is made and must specify the exact amount or rate of the compensation.
- Changes to Offering Compensation:
- If you choose to offer compensation to buyer brokers, your agent can no longer include this offer on a Multiple Listing Service (MLS), which is the platform used by brokers to share property listings.
- Instead, your agent can promote your listing and any compensation offers through off-MLS platforms like social media, flyers, and websites.
- Offering Buyer Concessions:
- You can still offer buyer concessions on the MLS, such as covering closing costs. This remains a viable option for making your home more attractive to buyers.
These practice changes are scheduled to take effect on August 17, and they aim to provide greater transparency and control for sellers in the home selling process.
2. What the Settlement Doesn’t Change
While the NAR settlement introduces new practices, several key aspects of working with a REALTOR® remain unchanged:
- Ethical Obligation:
- REALTORS® are committed to helping you through the home selling process and are ethically bound to act in your best interest. Their primary goal is to ensure that you make informed decisions that benefit you.
- Negotiable Compensation:
- The compensation for your agent is still fully negotiable. If your agent is a REALTOR®, they are required to have open and transparent discussions with you about their compensation.
- Your Choices as a Seller:
- You have numerous options when it comes to selling your home. Collaborate with your agent to explore these choices, which will help you make the best possible decisions for your situation.
NAR Settlement For Home sellers:
The recent NAR settlement introduces important changes that enhance transparency and provide you, the home seller, with greater control over the selling process. Understanding these changes will help you navigate your home sale more effectively. By working with a REALTOR®, you can be confident that you’ll receive ethical, expert advice tailored to your needs. As always, remember that compensation and other aspects of the sale are negotiable, so have open conversations with your agent to ensure your interests are protected and prioritized.
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