The Truth About A Complicated & Infrequent Transaction . . .

So, lord have mercy, there sure has been a lot of 'news' about the N.A.R. (National Association of Realtors) proposed settlement. 

Here, from your 22 year Realtor expert, is the truth about that settlement that is not really being calmly shared in the news.

First and foremost, the settlement is only a proposal. It will, hopefully, be agreed to this Summer. The N.A.R. chose to settle, to avoid 'copycat' future lawsuits. Nor, go into bankruptcy. I'm all for it.

• COMMISSIONS have ALWAYS been negotiable. ALWAYS. If your Realtor stands firm on their fees, you can choose another Realtor. Nuff Said. And, a Realtor can choose not to work for what you want to pay. Been there, done that.
• The MLS, Multiple Listing Service, has always shown the Buyer Agent Compensation in the agent remarks. In the last year or two, that information was made public on many Real Estate sites. Now, it cannot be noted in the MLS, so that won't show up on those sites any longer. However, there will likely be a concessions section in the MLS in the near future, as a lot of buyers will now ask Sellers to pay for their agents' fees.
• Once officially settled, it will also mean, a buyers agent will have to ask for, in writing, what, if any, Seller compensation is being offered for a property their buyer wants to write an offer on.
• Veterans & First Time Buyers will be hit hard. They frequently don't have a lot of cash on hand and are regularly asking for Sellers to pay closing costs. However, currently there are limits. Fannie & Freddie will be talking about increasing those limits as needed. We shall see on that.
• The Real Estate Purchase Agreement will start to see a lot of "Seller to Pay Buyer Agent Compensation of _____". 
• We will start to see the Buyer Broker Agent Agreement used regularly. It is used frequently by many already. More don't use than do though. It will state the buyer agent fiduciary responsibility to client, just like a sellers agent says in their listing agreement. It will also state what the agent's compensation is to be, who is to pay it, etc.
• We may see more Dual-Agency type sales. Which, me personally, I don't care for. How can you take care of two different sides of a transaction fairly at all times. "Same as why lawyers don't represent plaintiff and defendant" I just heard on a video this morning.
• As has happened so many times over the last two decades, many, I mean MANY, weaker agents will leave the business. Good, best to keep the intelligent and strong ones working for you than the fly-by-night, make a quick buck, ones....right?
• Will home prices change because of this? Very doubtful. Home prices are like everything else, Supply & Demand. But, based on the bullet point just above, if we lose crappy agents, will agent commissions go up due to that same Supply & Demand situation? Honestly, very doubtful. But, made me smirk as I typed it!
• Just some additional food for thought. When I first became licensed in 2002 to help people navigate their home sales and purchases, the average commission fees were about 6%. Last time they were over that was in 1991. The average in 2020 .... the COVID years .... was 4.94%. Most of our clients are at 5%, but, as stated above .... that is always negotiable. On Both Sides.

Me, and my 'family' of agents, hope that this post today helps to answer your questions and eliminate your concerns about what you are hearing in the news. This is not a biased, as a Realtor, post. This is the truth.

We will never break the Trust you have placed in us. 

Never.