NAR Settlement Update - How will this affect me?
With the recent NAR news, it’s imporant to know a few things:
Agents are now required to have signed buyer agreements in place with any buyer they are working with. This is already standard practice in Minnesota, as far as I know, but other states have different rules and some states don’t have this requirement in place. Now it’ll be standard practice nationwide. Want to see a property? You will need to have a signed buyer agenct agreement in place.
Buyer agent compensation can no longer be shown on MLS listings.
Right now, on every active MLS listing, any real estate agent can look at any listing and see what the seller is offering as compensation to the buyer’s agent.
The lawsuit deemed that this information did not serve the consumer’s best interest and, as a result, this will be removed from MLS July of this year. The 2.7% comp number is the buyer agent standard for the Twin Cities metro area, but that number is established by the seller and their agent. It can be any number the seller chooses, and that’s always been the case. Sometimes, sellers’ opt to offer 2.5% or 2.0%, or $5,000, or pick a number. It’s not that common, but it happens. The plaintiffs in the lawsuit felt that any number lower than the standard would result in buyer agents skipping that listing for something offering better pay. So, when I work with you as a buyer, I’ll be having more personal conversation both you and the seller’s agent, so that it’s understood what the seller’s offer of compensation to the buyer agent IS, before homes are shown or offers are made.About the 6% number you may have read about … The total compensation paid by the seller is always split between BOTH the seller’s agent and the buyer’s agent and it can be any percentage that the seller and their agent agree to. That number is, and has always been, negotiable between the seller and the seller’s agent. There have been plenty of headlines saying that “6% is going away”. I just don’t see that happening as a result of this lawsuit.
Everything is ok this is not as alarming as news outlets have made things seem. Turn those mental alarms off 🚨 If you have questions about what you’ve heard or read, shoot me an email and I’d be happy to talk with you about it!
