understanding the NAR Lawsuit Settlement
changes to the homebuying experience.
As a homebuyer, this proposed settlement means there will be some changes to your real estate experience:
01 - required buyer agreements.
Prior to this settlement proposal, it was acceptable (though not widely practiced) for buyer’s agents to forge relatively informal, unwritten agreements with their clients regarding service. Following these proposed changes, buyers must sign a service agreement with a real estate professional in order to be shown homes.
02 - buyer’s agent compensation.
Prior to the proposed changes in the settlement, buyer’s agents were compensated via a cooperation agreement with the seller and seller’s agent facilitated by the multiple listing service. While this sort of cooperation is still allowed, the MLS is no longer allowed to coordinate it. Buyer’s agents will now be responsible for negotiating their own compensation with clients.
faq
What does this means for homebuyers?
As a homebuyer, these changes will require new, important conversations between you and your real estate professional. A buyer service agreement will formalize your agent’s fiduciary responsibility to you, further protecting your interests. It will allow the opportunity for real, transparent communication with your agent around compensation, offering you a clear understanding of the cost of services and how those services benefit you.
These conversations will ultimately set buyers up for greater success in their transactions. More buyers will start the home search process with a clear understanding of their strategy, how their agent will support them, and what it will take to get to the closing table.
If the NAR lawsuit settlement proposal is adopted, how will the process of buy-side commissions in real estate change?
Two major changes: First, compensation offers to buyer’s agents will no longer be displayed on the MLS, and the MLS won’t be allowed to facilitate commission cooperation between the buy and sell sides of transactions. Second, all buyers will be required to sign a buyer agreement with their agent outlining service terms, including commission requirements.
What are the March agents and brokers doing right now to help their clients with these changes?
The best agents are obsessed with the client experience. They're taking action very quickly to level up the technology in their businesses because they understand it's the only way to deliver strong profitability and a world-class client experience. March has done just this and we are ready to assist our buyer clients navigate these NAR changes and the ever changing real estate market.
how we work with buyers
As a March client, you can expect nothing but the highest level of service and counsel. We take our fiduciary commitment to you extremely seriously and believe that the best way to advocate for your best interests is through preparation. For each property our clients consider, we complete market research, potential pricing and offer strategies, contract negotiation tactics, and more.
Before the NAR lawsuit settlement proposal, some buyer’s agents were able to get away with doing the bare minimum. Thanks to assumed cooperation with the seller, they might get paid for simply showing up, unlocking doors, and pushing papers. While that was never our approach, it is now no longer the world we live in. As a March client, you can rest assured that we will provide you with expert-level service and advice throughout our professional relationship.