Customer questions about how we’ll transact real estate starting August 17th are coming in fast. That’s the date when the NAR Settlement changes begin.
(Reminder: The National Association of Realtors (NAR) lost a class-action lawsuit in October 2023. This March NAR settled for $418 million. August 17th is when NAR Settlement changes go into effect across America).
With all the buzz around buyers paying agent fees, it’s natural for buyers to have concerns. Here are a few things you need to know as the countdown to the NAR Settlement changes start August 17th:
* Will buyers be paying their agents’ fees with this new NAR settlement?
Seller’s will no longer be able to publicly offer to pay a cooperating buyer-broker on the MLS. However, sellers can still offer to pay the buyer compensation and will likely continue to incentivize buyers’ agents to bring qualified buyers. The fee for your buyer agent is now negotiated with you BEFORE you go home shopping.
Commissions have always been negotiable, disclosed and that will not change under the NAR settlement. The key change is more upfront transparency & new verbiage/forms/contracts, but overall business will likely be conducted like how it is now.
* How does your buyer-broker get paid?
If you’re able, you can pay your broker directly the amount you negotiate. You can still ask the seller to pay your broker through escrow or pay this amount to you. Then you pay your broker. If the seller is unrepresented (think of a For Sale By Owner), then your broker can negotiate payment with the seller.
Using a Realtor® is optional – nothing new here. You may represent yourself or hire an attorney. But having a professional Realtor® may provide valuable guidance, especially in complex transactions.
* If you decide to work with a Realtor®, you’ll need to sign a buyer-broker agreement prior to home shopping. This ensures you’re both on the same page regarding terms and representation details.
* Will sellers discount their home price?
We don’t anticipate that happening, so not necessarily. While you may negotiate, sellers will often choose offers that best meet their financial objectives.
The main difference in how we will do business moving forward in this new NAR settlement world: everything is negotiable AND negotiations with seller or buyers must be done with them directly, outside the Multiple Listing Service (MLS) and in written agreements. No longer is the day without the conversation about not disclosed.
I like to think of the new NAR settlement world as this: real estate is your largest purchase in your life. Consumers need to have more details and disclosures on how a transaction happens, what the process is… and what are the costs involved. This is now what sellers and buyers will see, hear and sign moving forward.
Having been in the industry since 1996, I believe this is a great thing for consumers and embrace the change.
As for home sellers, I’ll have more next week. In the meantime, you can follow my Instagram Reels where I’m sharing one piece of information about this daily. See my Instagram icon at the bottom of this email.
Or, click this link where you can get your questions answered now.
If you’re planning to buy a home this year, don’t let these NAR settlement changes deter you. Reach out to me at 561-777-4089. Let’s discuss your questions and explore your options together.
(main photo: Buy a Condo in Delray Harbor and bring your boat, or gawk at them)
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*** With mortgage rates now down to 6.35%, and supply up 82% since one year ago today, it’s time for buyers to perk up. Right NOW is the best time of the year to be a buyer. Check out my Seasonal Benefits of Buying a Delray Beach Home In The Summer
*** My latest video shows how real estate is causing panic with some market participants
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*** South Florida’s Surging Supply Update ***
* This morning’s Inventory is 48,240 *
That’s a 180 unit drop in one week
Since August 1, 2023, supply is up 77%
