FAQs: The NAR Settlement

​​Important Changes in Real Estate: What You Need to Know About the NAR Settlement
We want to inform you about the recent National Association of Realtors (NAR) settlement and what it means for you.

What Happened?
The NAR recently settled a class-action lawsuit that alleged unfair practices in real estate transactions. This lawsuit focused on how real estate agents disclosed and negotiated their commissions. The settlement aims to increase transparency and fairness in the real estate industry.

What Will Be Changing?
Starting August 14, 2024, in the Kansas City market, buyer agents' commissions will no longer be included in MLS listings. Additionally, buyer agents must, by law, have a written agreement with their clients before showing homes.

What Does This Mean for You?
With potentially confusing media coverage, the key takeaway is to ensure you understand how agents are paid. This clarity will help you make informed decisions when buying or selling a home. If you bought or sold a home in the last four years, you might receive a postcard about filing a claim for $10-$25.

Why Did This Happen?
The lawsuit addressed a practice known as "tying," where listing agents predetermined commissions for buyer agents in MLS. This practice hindered negotiation and potentially inflated costs for sellers and buyers.

How Will These Changes Affect Me?
The changes aim to make commissions more transparent, helping buyers and sellers understand their options. Commissions have always been negotiable, but now they will be clearly presented in real estate contracts that both parties will be able to see.  It is crucial for our industry to avoid returning to the "Buyer Beware" approach of the past, which led to a significant increase in lawsuits. Currently, 71% of all real estate lawsuits involve one or more unrepresented parties, so we are here to help you navigate the process and limit your liability.

Will Sellers Still Pay Buyer Agent Commissions?
Despite some media claims, sellers will likely continue to pay buyer agent commissions. Market conditions, whether buyer, neutral, or seller’s market, will influence who pays these fees. The fact is that 89% of buyers hire buyer’s agents to represent them throughout the process of buying a property.

For Sellers:
The buyer’s agent compensation will be specified in the offer and will be negotiated during the offer and contract process. We will help you review each offer to select the one that best suits you, including which offer will NET you the most money, if that is what is important to you.
For Buyers:
We are here to help you navigate the process and explore all available options for buyers. Our commitment to you is to have a comprehensive Buyer Consultation that will walk you through options, the process and how we can help.

Do you have additional questions? Give us a call!

Thanks for reading,

Ferryl