Homebuyers, HERE’s WHAT THE NAR SETTLEMENT MEANS FOR YOU

Buying a home is one of the largest financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your home-buying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit homebuyers, and we wanted to lay them out for you with common questions and answers. 

FAQs for Home Buyers with New Changes 

1. What does the new rule about compensation offers mean for home buyers? ○ Starting August 17, 2024, offers of compensation will no longer be available on MLS listings for Realtors to review and agents will communicate directly to find out what the commission offering is. Sellers can still offer buyer concessions, such as covering closing costs, directly on the MLS. 
2. How will these changes affect my home-buying process? 

○ You will need to discuss compensation with your real estate agent off-MLS. Additionally, you will be required to sign a written agreement with your agent before touring any homes. 

3. What is an MLS, and how does it work? 

○ MLS stands for Multiple Listing Service, a database used by real estate brokers to share information about properties for sale. It helps facilitate cooperation between brokers and provides buyers with access to a wide range of listings. 

4. Why are written agreements required before touring homes? 

○ The new rule aims to ensure transparency and clarify the terms of the relationship between buyers and their agents. It helps protect both parties and ensures that buyers understand the services their agents will provide. 5. What should I expect in a written agreement with my real estate agent? ○ A written agreement will outline the services your agent will provide, the terms of compensation, and any other relevant conditions. It ensures that both parties have a clear understanding of their roles and responsibilities. 

6. Can I still receive concessions from sellers on the MLS? 

○ Yes, sellers can still offer buyer concessions, such as assistance with closing costs, directly on the MLS. These concessions are separate from 

compensation offers.

7. How do I negotiate compensation with my real estate agent off-MLS? ○ Discuss the terms of compensation directly with your agent. They can guide you through the process and help you understand what is standard in your market. 
8. Will these changes increase my costs as a home buyer? ○ Not necessarily. While the process for negotiating compensation has changed, it doesn't inherently increase costs. The overall expense will depend on the terms you negotiate with your agent and any concessions offered by the seller. 
9. What happens if I don't sign a written agreement with my agent? ○ Your agent will not be able to show you homes until a written agreement is in place. This rule is designed to ensure clarity and protect the interests of both buyers and agents. 
10. Are there any exceptions to these new rules? 

○ As of the implementation date, these rules will apply universally to all MLS Participants and their clients. Always consult with your real estate professional for any specific circumstances that might apply to your situation.