NAR Settlement and Potential Impact

[Bubba McCants]

Hey Bigger Pockets Community!

I've been closely following the developments of the National Association of Realtors (NAR) settlement and its potential impact on our industry. As many of you are likely aware, this settlement is poised to bring some significant changes to how real estate transactions, especially regarding agent commissions and MLS listings, are conducted.

Here's a quick rundown of the key components:

1. Transparency in Agent Compensation: One of the major shifts will be the removal of agent commission info from MLS listings. This means that discussions and negotiations regarding commissions will take place privately, outside the MLS.

1. Written Buyer Broker Agreements: Agents working with buyers will need signed agreements prior to home showings, which should clearly define the services and compensation.

1. Seller Concessions Rules: Sellers can offer concessions through MLS (like buyer closing costs), but it cannot specify buyer agent compensation.

1. Agent Compensation Promotion: While agents can promote buyer agent compensation on their websites for their listings, it cannot be offered on the MLS or any collective/shared environment.

These changes are set to go into effect in mid-July 2024, subject to court approval. This has been a hot topic, raising both concerns and questions among professionals and consumers alike. Some agents worry about how it will affect their business and client relations, while sellers and buyers are trying to grasp how it might impact their transactions.

As a community devoted to real estate knowledge and empowerment, let's dive into this together:

• Agents and Brokers: How do you plan on adjusting your listing and showing strategies once these changes take effect?

• Investors and Sellers: Does the idea of a more private negotiation around commissions affect your decision to sell or hold your properties?

• Buyers: How do you feel about the requirement for written agreements before seeing homes? Does this add a layer of trust or complexity for you?

This platform is a great way to share strategies, perspectives, and insights. Personally, I'm particularly interested in discussing how we can maintain – or even enhance - transparency and trust with our clients amidst these changes.

Looking forward to a robust and enlightening discussion!