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Avanti Way

NAR Settlement truths and myths

Hello everyone! I wanted to share some truths about the recent settlement news from The National Association of Realtors which have been widely misinterpreted by the media

It’s time to set the record straight and debunk some of these misconceptions.

2 Big changes from NAR

  1. Offers of compensation will be prohibited from MLS – although Realtors will still be able to display compensation in their own websites and their own listings.
  2. Realtors working with buyers will be required to enter into written buyer broker agreements that show amount of compensation, how the amount will be determined and where said amount will come from

MYTH #1

Realtors will no longer be able to set commissions

FALSE – commissions have always been negotiable and will continue to be negotiable

MYTH #2

“Americans will be able to negotiate real estate commissions for the first time” – this one via President Joe Biden

FALSE – will all due respect Mr. president – real estate commissions have always been negotiable.  This settlement will not alter that

MYTH #3

Settlement Forces Brokers to reduce their compensation

FALSE

The market has always had a wide variety of fees, reflecting different levels of service, marketing, and competence. This settlement doesn’t dictate how brokers set their fees

MYTH #4

Sellers will no longer offer compensation to buyer’s agents – or prohibits sellers from paying a commission to buyer’s agent

FALSE

Sellers will still offer compensation to buyer’s agents.  The settlement prohibits offer of compensation to be displayed in MLS, but not to be removed altogether.  Sellers may still elect to pay buyer compensation and differentiate their properties.

 

There you have it, four debunked myths about the NAR settlement. We hope this discussion has helped set the record straight and brought some clarity to the topic

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