Blog > HOME SELLERS, HERE’S WHAT THE NAR SETTLEMENT MEANS FOR YOU
As a home seller, you have a wide range of choices when it comes to listing your home. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate this complex process and make the choices that work best for you. NAR’s recent settlement has led to several changes related to broker commissions that benefit sellers, and we wanted to clearly lay them out for you.
- What does the new rule about compensation offers mean for home sellers?
Starting August 17, 2024, compensation offers to buyer agents will no longer be included in MLS listings. Instead, agents will communicate directly with each other to determine the commission offering. However, you can still offer buyer concessions, such as covering closing costs, directly on the MLS.
- How will these changes affect the home selling process?
You will need to discuss compensation with your listing agent, who will then communicate the terms to buyer agents directly. This change may require more direct negotiation, but it will not affect your ability to sell your home or offer concessions to buyers.
- What is an MLS, and how does it work?
The Multiple Listing Service (MLS) is a database used by real estate brokers to share information about properties for sale. It helps facilitate cooperation between brokers, allowing them to present a wide range of listings to potential buyers.
- Why are compensation offers no longer included on MLS listings?
This rule change is intended to increase transparency and encourage direct communication between agents regarding compensation. It also aims to reduce any potential conflicts of interest by requiring buyer agents to discuss compensation separately from the property listing.
- What are buyer concessions, and how can I offer them?
Buyer concessions are incentives you can offer to help attract buyers, such as covering closing costs or providing a home warranty. These concessions can still be listed directly on the MLS, separate from agent compensation offers.
- How do I discuss compensation with my listing agent?
Your listing agent will guide you through the process of setting the terms of compensation for buyer agents. These terms will then be communicated directly to buyer agents off-MLS, ensuring that both parties have a clear understanding of the arrangement.
- Will these changes impact the price at which I can sell my home?
The changes do not inherently affect the selling price of your home. The price will still be determined by market conditions, buyer interest, and the negotiations between you and potential buyers.
- What happens if I don't offer compensation to buyer agents?
While offering compensation to buyer agents is common practice, it is not mandatory.
However, not offering compensation may affect the interest level of buyer agents, as they typically expect to be compensated for their work.
- Can I still offer compensation to buyer agents even if it's not listed on the MLS?
Yes, you can still offer compensation to buyer agents; it just won't be listed on the MLS.
Your listing agent will handle the communication of these terms directly with buyer agents.
- Are there any exceptions to these new rules?
As of the implementation date, these rules will apply to all agents and their clients. It's advisable to consult with your real estate professional for any specific circumstances that may apply to your situation.
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