Will the new NAR rulings effect Sellers and Buyers? August marks a significant transformation in the national real estate landscape. The traditional requirement for sellers to allocate a portion of their commission to the buyer’s agents on listings in the MLS and other platforms is being eliminated. Commission structures varied widely, with some agents charging 7% and offering 2.7% to buyer’s agents, while others might charge less but still pay a similar percentage.
The updated approach promotes greater transparency. Historically, it was common for listing agents to claim they were sharing half of their commission with buyer’s agents, though the reality often refected a much smaller share. Under the new regulations, only the listing agent’s commission will be disclosed. This change raises important questions about fairness and compensation if a buyer’s agent negotiates payment from the seller.
Navigating these changes will require the guidance of a skilled advocate more than ever. Clients interested in viewing homes will now need to sign a contract beforehand, choosing between an exclusive or non-exclusive buyer’s representation agreement. This agreement must clearly outline the payment structure—whether it involves payment by the seller, directly by the buyer, or a combination of both.
For those considering navigating these changes independently, a facilitator agreement is an option, though consulting with seasoned professionals is advisable. Justyna, a leading solo agent in Minnesota known for her exceptional sales record and stellar online reviews, is highly recommended. She is always eager to share her insights, regardless of whether a contract is signed, making her a valuable resource in this evolving real estate environment.
