March 2024

Did you hear about the National Association of Realtors lawsuit? There's a lot of misinformation out there so let's look at the black and white of it all and remember that the amount of commission paid has always been negotiable. 

What are the most significant elements of the Proposed Settlement? When will the agreement be final?

• NAR agreed to pay over $400 million, spread out over 4 years.

• NAR agreed that any REALTOR® owned MLS would prohibit seller’s agents from using the MLS to make an offer of compensation to agents representing buyers who purchased the seller’s property.

• Buyers’ agents would be required to have a written representation agreement with their buyer clients.

• Agents working with buyers would be required to have a written representation agreement before showing properties to buyers.

• Buyers’ agents may not be paid more than the amount specified in a representation agreement.

• It is expected that the proposed settlement will be approved by the applicable court and NAR will take actions to implement its terms by mid-July 2024. How will buyers’ agents get paid? Can sellers’ agents still offer to compensate them for bringing a buyer?

• Buyers’ agents can get paid directly from buyer clients, according to the terms of their representation agreement.

• Buyers’ agents can get paid directly from the seller if a term in the buyer’s offer asks the seller to pay the buyer’s agent and the offer is accepted by the seller.

• Buyers’ agents can get paid by the seller’s agent if an agreement has been reached with the seller’s agent.

• Seller’s agents can offer to compensate buyers’ agents without using the MLS. Any such offer of compensation can be made directly to the buyer’s agent or may be conveyed elsewhere, such as on an agent’s website.

I'm happy to layout all your options and also prove how offering a 2.5% buyer agent commission can make the home seller an extra 10% to 20% on the sale price while avoiding potential lawsuits by using two different agents to represent the seller and buyer.