I said previously that starting in May, I would discuss how the National Association of Realtors lawsuit settlement is going to impact buyers, sellers, buyer agents, and listing agents when the changes go into effect in mid-July.
After speaking with the general public, I realized that many people have heard of this settlement in some capacity, but don’t know the details of it. So today, I will start by talking about what the settlement means, and then in future weeks, I will talk more in depth on how this settlement might impact buyers, sellers, and the agents.
What does the settlement mean? Presently, and up until mid-July, and in the past, listing agents have gone and met with the seller. They then determine what the listing price is going to be for a home, and also what the real estate fee will be (that the seller pays). A portion of that real estate fee goes to the buyer agent, and a portion of it goes to the listing agent. This is all predetermined in the listing contract. It is then advertised within our realtor MLS system so that the buyer agents know ahead of time what their commission will be.
What is going to change now? The buyer will have to negotiate directly with their buyer agent on what their agent will be paid, how they will be paid, and when they will be paid. Now, this doesn’t mean that the seller still can’t pay that fee on behalf of the buyer at closing. The difference is, the seller has just not agreed to a predetermined amount with their listing agent in a listing contract beforehand.
I will be talking in more detail in upcoming weeks of how this might impact buyers, what they might do, and how sellers might handle this situation, as well as listing agents and buyers agents. But in the meantime, if you have questions before this goes into effect in mid-July, give me a call, send me a text, or send me an email, I’d be glad to assist you!
And remember, my team and I are on standby 7 days a week, ready to help you take the smoother road to sold!
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