You probably have heard much news on the recent NAR settlement. As a home buyer and seller, you will be asking, how does that affect me? Let's give you some background before we go into the Facts and Fiction on using the service of a listing and buyer's agent.
The NAR settlement stems from a series of class-action lawsuits filed by home sellers alleging that the National Association of Realtors' rules on real estate commissions were anti-competitive and inflated home prices nationwide by around $60 billion. The lawsuits claimed that the NAR's requirement for sellers to offer compensation to buyer's agents upfront reduced price competition and led to inflated commissions, ultimately harming both buyers and sellers. In October 2023, a federal jury ruled that the NAR had "conspired to require home sellers to pay the commissions of buyer's brokers", leading to the $418 million settlement announced in March 2024 to resolve the litigation.
The x% of buying or selling a home is gone.
Fact
Commissions have always been negotiable in real estate transactions. Listing agents and sellers can continue to offer compensation outside of the National Association of Realtors-affiliated MLSs.
Fiction
Sellers no longer need to compensate buyer’s agents.
Fact
Offering buyer agent compensation or concessions is a choice made by a seller in consultation with their listing agent. The commissions have always been negotiable.
Fiction
Buyers no longer need a buyer’s agent.
Fact
Home buyers are best protected by professional real estate agents. When making one of the most significant financial transactions of their lifetime, buyers deserve a trusted advisor to guide them through the process and represent their interests.
Fiction
The settlement will change the way Americans buy and sell homes.
Fact
Real estate professionals will continue to help buyers and sellers navigate one of the most costly and complex transactions of their lives.
Fiction
Sellers are now prohibited from offering buyer’s compensation
Fact
Offering a buyer’s agent commission has always been up to the seller. Sellers can continue to offer compensation to buyer’s agents if they believe it will lead to the best outcome for the sale of their property.
I hope that clears up some of the confusion!