NAR Settlement - Direct to Listing Agent Lost Power?

[Trevor Richardson]

Before the settlement and after this settlement, buyers always had the option to approach the listing agent directly with an offer, a power they've held all along. It’s interesting to see how people are reacting like this is a newfound power for buyers.

Fundamentally, nothing in this respect has changed. However, the landscape could shift significantly for unrepresented buyers. The potential 2.5% commission that might have been directed to the buyer's side is now potentially off the table.

This change prompts a critical question for unrepresented buyers: how does this alter your strategic advantage when approaching a sale without an agent? Previously, that 2.5% could have served as a powerful negotiating chip, either to bolster your offer or to pocket as a credit. The pre-settlement era seemingly encouraged buyers to self-represent, lured by the possibility of claiming the buy-side commission for themselves.

Now, with this incentive structure altered, it will be interesting to see how the dynamics and strategies of unrepresented purchasing change in the current market.