Impact On Home Buyers If NAR Settlement Is Approved

If the NAR Settlement is approved by the court, home buyers may face some difficult changes and may have to bring more cash to closing.

Proposed Change #1

Buyer agent commission can’t be offered in the MLS

• Buyers and their agents will have to negotiate commission with sellers and their agents on a case-by-case basis
• Buyer agent commission may be a key term for sellers to consider, especially in multiple offer situations
  • Some buyers may opt to not use an agent, in order to make their offers more attractive to sellers
    • These buyers will not have the benefits of professional representation
• Buyers may have to pay some or all of their agents’ commission
• Buyers may have fewer listings to choose from
  • If some sellers aren’t offering to pay the buyer agent commission, buyers who can’t afford to pay for it themselves may have to find other homes

Proposed Change #2

Buyers and their agents must sign a written agreement before starting the home buying process

• Buyers will have to shop for an agent before shopping for a home, if they want professional representation
• Buyers will have to commit to an agent and agree to compensation before experiencing the agent’s service first-hand
  • Some buyers may opt to not work with an agent, because they’re not comfortable with this
    • These buyers will not have the benefits of professional representation
• Buyers will have more transparency regarding how their agents are paid and what services their agents are providing

Conclusion

If the NAR settlement is approved by the court, home buyers may face more adversity than sellers, agents, and any other parties in the real estate industry. If you’re planning to buy a home in the near future and you’d like to know how to navigate these changes, click the link below to schedule a call.