You may or may not have seen on the news a lot of talk about the NAR settlement and what it means.
You can read about it here: NAR Settlement.
In summary, the settlement states that MLSs cannot publish commissions offered to buyers’ agents on their websites anymore. Before the settlement, listing agents used to negotiate with the seller for the full commission and split it with the buyers’ agent. Now, the buyers’ agent has to figure out the commission with the buyer or maybe the seller before making the offer.
This is not a huge change, as commissions have always been negotiable. However, there was the impression, especially from the buyers, that since they were not paying for it (remember the listing agent negotiates with the seller before listing), they had no control over them.
It’s hard to know exactly what will happen until this is implemented (July 2024 is when it’s supposed to start), but below are a few thoughts about it.
Buyers might want to go straight to the listing agent to save money and not pay for a buyer’s agent.
That could happen, and it does already happen often for this exact same reason. Now, keep in mind the listing agent’s duty is to the seller, and it might be wise to have an agent on your side.
The seller’s agent might still ask the buyer for a fee in order to represent the buyer since it’s extra work and extra liability.
In some states, dual representation is not allowed, so the buyers will have to get an agent or be unrepresented.
When the buyer’s agent makes an offer, the offer will also spell out how much commission he will expect from the seller.
This already happens with commercial and unlisted properties.
In case the seller does not want to pay for the buyer-sided commission, the buyer will have to pay for the commission if he wants to have representation.
The buyer’s agent is providing a service, and it’s normal to be paid for services provided.
These are only a few thoughts I had, and I think more is going to come before and after the settlement is implemented.
