National Association of Realtors (NAR) Settlement: Key Changes Effective August 17
Recent news has highlighted nationwide changes that came into effect on August 17, following the National Association of Realtors (NAR) settlement. These changes are set to reshape how realtors in Moore County, NC, will conduct real estate transactions moving forward.
My Commitment to You
I want to assure you that my commitment to helping you find your ideal home or property for sale in Moore County, NC, negotiating the best terms, and guiding you through every step of inspections and appraisals remains steadfast. My focus is always on providing you with the best service, regardless of these industry changes.
Changes Already in Practice in North Carolina
Much of what you’ve been reading about is already standard practice in North Carolina. Below, I’ve summarized the key changes for your convenience. If you have any questions, please feel free to reach out to me at 1kimkaplan@gmail.com.
Major Changes for Realtors Effective August 17, 2024: What You Need to Know
Realtors across the United States are preparing for a significant transformation in the way they conduct business. Here’s a closer look at the changes:
Background of the Changes
- These changes stem from a $418 million settlement announced by the NAR in March 2024.
- The settlement addresses lawsuits that challenged the traditional commission structure in the real estate industry, leading to a shift in how Realtors are compensated.
Traditional Commission Structure
- Traditionally, home sellers were responsible for paying a commission based on a percentage of the home’s sale price.
- In many states, including North Carolina, the commission has always been negotiable.
- The commission was typically paid to the listing company, which then split it with the selling company.
What changed on August 17
- Removal of Compensation Details from Multiple Listing Service (MLS)
- The MLS, the primary tool Realtors use to share property listings, will no longer display the compensation offered to buyer’s agents.
- This change aims to increase transparency and remove any implicit pressure on sellers to offer a certain commission rate.
- Realtors can still discuss their compensation through other channels, such as direct conversations, emails, or separate advertisements.
- Mandatory Buyer’s Agent Compensation Disclosure
- Before touring properties, buyers and their agents must now sign a written buyer agency agreement. This has been standard practice in North Carolina.
- The agreement will clearly state that the buyer may be responsible for paying their agent’s commission if the seller does not cover it. However, many sellers, including those associated with Keller Williams and other local agencies, continue to offer to pay this commission.
- The goal is to ensure buyers are fully informed about potential costs upfront, avoiding surprises later in the transaction.
- Realtors in 18 states, including North Carolina, have already been required to use similar agreements, making this change less disruptive for some.
For more information or to discuss how these changes might affect you, please don’t hesitate to contact me at 1kimkaplan@gmail.com.