Big Changes for Home Buyers! What the NAR Settlement Means for You

Big changes are coming to the real estate industry! If you're in the market to buy a home, you need to be aware of the recent NAR settlement that will impact how commissions work in the future. The structure of agent compensation is shifting, and here's what you need to know:

What Changed with the NAR Settlement?

For years, buyers didn't directly pay their agent’s commission. Instead, sellers typically offered compensation to the buyer's agent, which was split with the listing agent. However, under the new settlement, sellers are no longer required to offer compensation to the buyer's agent. While some sellers may still include compensation, others may not. This could mean that buyers will need to pay their agent directly for their services.

How Does This Affect You as a Buyer?

As a buyer, the biggest change is that you will now need to sign a Buyer Agency Agreement before working with an agent. This formal agreement will outline the agent’s services, their compensation, and ensure transparency throughout the process. If the seller isn’t offering compensation, you may need to pay your agent directly, or we can negotiate it as part of the transaction.

How Will Your Agent Get Paid?

If the seller does not offer compensation, we’ll discuss upfront how we’ll handle agent fees. In some cases, we may structure the fee into your offer. We’ll be clear on all financial aspects from the beginning, so there are no surprises.

Impact on Your Home Search

With this change, the way we approach your home search will also shift. We’ll discuss the details of each property you’re interested in before scheduling a tour, ensuring there’s no confusion about agent compensation. If the seller isn't offering compensation, we’ll discuss how to manage that as part of your purchase plan.

Summary

The NAR settlement represents a significant change in how real estate commissions are structured. While this may seem like a lot to navigate, I’ll be here to guide you through every step of the process. Don’t hesitate to reach out with any questions about how this impacts your home-buying journey!

Watch the Video Below for More Information:

If you're ready to buy or need help navigating the real estate market, give me a call! We’ll create a plan tailored just for you.