Statement on Recent NAR Lawsuit Changes Affecting Home Buyers

We want to keep you informed about some important changes in the real estate market resulting from a recent lawsuit involving the National Association of Realtors (NAR). These changes will impact how real estate transactions are conducted and how agents are compensated.

Key Changes:

1. MLS Commission Removal:

   • The Multiple Listing Service (MLS) will no longer include information about buyer’s agent commissions. This means that it will be the responsibility of the buyer’s agent to find out what compensation is being offered for each home sale. As a buyer, you may need to discuss and negotiate your agent’s compensation directly with them.

2. Buyer Broker Form Requirement:

   • Before touring any homes with a buyer’s agent, a buyer broker agreement form will need to be signed. This form outlines the terms of the relationship between you and your agent, including how they will be compensated. This step ensures transparency and clarity from the beginning of your home-buying process.

What This Means for You:

• Negotiation of Commissions: Buyer's agents will have the flexibility to negotiate how they are paid their commission. This can be done in several ways:
  • Traditional Method: The commission is offered by the seller as part of the total commission paid at closing to both agents.
  • Seller Concessions: The seller may agree to concessions that cover the buyer agent’s commission.
  • Buyer Payment: Buyers may agree to pay all or part of the commission amount required by their agent.
• Continuing Practices: It’s important to note that 77% of home sellers are expected to continue offering commission to buyer’s agents to facilitate deals. This traditional approach remains a viable and common method for compensating buyer’s agents.

These changes aim to increase transparency and provide you with a clearer understanding of your real estate transaction. While the process may involve a few additional steps, we are committed to guiding you through these adjustments and ensuring that your home buying experience remains smooth and informed.

If you have any questions or need further clarification on how these changes might affect your home search, please feel free to contact us. We are here to help you navigate these new requirements and assist you in finding your ideal home.

Thank you for your continued trust and confidence.