What the NAR Settlement Means for Home Sellers: Key Updates

Irma Camacho • September 19, 2024

If you're planning to sell your home, understanding the recent changes from the National Association of REALTORS® (NAR) settlement is important.

These changes, which took effect on August 17, 2024, are designed to provide more transparency around broker commissions and give sellers like you greater control over your home sale. Here's what you need to know about how the settlement impacts you:


What’s New for Home Sellers?


1. You Can Still Offer Compensation to Buyer Brokers

  • As a seller, you still have the option to offer compensation to buyer brokers, which can be a way to make your listing more attractive to buyers. However, this is entirely your choice and not a requirement.

 

2. Clear Disclosure of Payments to Buyer Brokers

  •   Your listing agent is now required to clearly disclose and get your approval for any payments or offers of payment made to another broker representing a buyer. This must be done in writing and before any agreements or payments are made.


3. No Commission Offers on the MLS

  • If you decide to offer compensation to a buyer's broker, your agent can no longer include this offer on the Multiple Listing Service (MLS), which is the platform used by agents to list properties. However, your agent can still market your listing in other ways, such as on social media, flyers, or their website.


4. Buyer Concessions Are Still Allowed

  • You are still allowed to offer concessions, such as covering a buyer's closing costs, and this can still be included in MLS listings.


What Stays the Same?


1. Agents Are Still Working in Your Best Interest

  • REALTORS® are committed to helping you navigate the home-selling process and are ethically bound to work in your best interest. This hasn’t changed under the new settlement.


2. Compensation Is Fully Negotiable

  • Your agent’s commission remains fully negotiable. You have the flexibility to discuss and agree on what works best for your needs and goals. REALTORS® are required to be transparent about compensation, so be sure to have clear conversations with your agent about any fees or commissions.


3. You Have Options

  • Selling a home comes with a range of choices, from pricing strategies to how you market your property. It’s important to work closely with your agent to understand these options and make informed decisions that suit your situation.


Final Thoughts


These updates from the NAR settlement offer more clarity and control for sellers when it comes to broker commissions and how they’re handled. With the right guidance from a trusted REALTOR®, you can navigate these changes smoothly and make the best decisions for your home sale.


For more detailed information, visit facts.realtor.


If you have any questions about these changes or need help selling your home, feel free to reach out! I’m here to ensure your home-selling process is as seamless and successful as possible.

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