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What the NAR Settlement Means for Homebuyers

Buying a home is one of the most significant financial decisions you'll make, and having a knowledgeable and trusted advisor by your side is essential. As REALTORS®, we are here to help you navigate the homebuying process with transparency and expertise. The recent National Association of REALTORS® (NAR) settlement has brought some important changes, all of which benefit you as a homebuyer. Here’s what you need to know:

Key Changes Benefiting Homebuyers:

  • Written Agreements with Your Agent: Before touring a home, you’ll sign a written agreement with your agent. This document ensures clarity on the services being provided and the terms of compensation. Be sure you fully understand the agreement, the services offered, and how much those services will cost.
  • Compensation Transparency: Your agreement with your agent must include:
    1. A clear disclosure of how much the agent will be compensated or how this will be determined.
    2. A specific, objective compensation structure (e.g., flat fee, percentage, or hourly rate). No open-ended terms.
    3. A clause ensuring your agent doesn’t receive compensation beyond what’s agreed upon.
    4. A statement that broker fees and commissions are negotiable.
  • Application of Written Agreements: These agreements apply to both in-person and live virtual home tours. However, they are not required for casual conversations, such as at open houses.
  • Seller-Offered Compensation: While a seller can still offer to pay your agent's commission, this information is no longer shared on the Multiple Listing Service (MLS), which agents use to market properties.
  • Concessions from the Seller: You can still negotiate with the seller for concessions, such as covering some of your closing costs.

These changes took effect on August 17, 2024.

What Stays the Same:

  • REALTORS®' Commitment to You: As REALTORS®, we are ethically bound to put your interests first, guiding you through every step of the process. You can count on us to have transparent discussions about compensation and services.
  • Compensation is Always Negotiable: The compensation for your agent remains fully negotiable. It’s important to ask questions, understand the services provided, and ensure you’re comfortable with the terms before moving forward.
  • You Have Options: Homebuying is a journey full of choices. Your agent is here to help you understand your options so that you can make informed decisions that best suit your needs.

For more information on these changes, visit facts.realtor.

Downloadable Consumer Guides

For a deeper dive into the changes brought by the NAR settlement and how they impact homebuyers, explore the following consumer guides:

These guides provide essential insights to help you better understand how the recent changes affect your homebuying experience.

Options for Written Agreements

To ensure transparency and clarity in your homebuying journey, we offer several types of written agreements that detail the services provided and the associated compensation. Below are a few options:

  • Property Pre-Touring Agreement
    This agreement allows you to tour properties with your agent before committing to a purchase. It outlines the scope of services, and compensation terms, and ensures no obligation until you're ready to proceed with a purchase. Property Pre-Touring Agreement (PPTA-1)
  • Showing Agreement
    A Showing Agreement provides you with the professional support of your agent during the property viewing process. It covers how your agent will assist in touring, negotiating, and closing a transaction. Showing Agreement (SA-4)
  • Exclusive Buyer Brokerage Agreement
    This comprehensive agreement establishes an exclusive working relationship between you and your agent. It covers all aspects of property acquisition, including purchase, lease, or exchange. It also clearly defines the agent's responsibilities and the terms of compensation. Exclusive Buyer Brokerage Agreement, Transaction Broker (EBBA_7tb)

Note: Other real estate brokers may offer different agreements or have their own specific terms. Be sure to review any agreements carefully to ensure they meet your needs.

Have Questions About the NAR Settlement Changes?
Understanding the recent updates can make a big difference in your homebuying experience. We're here to help you navigate every step.

Contact Us for a Free Buyer Consultation
Get expert guidance tailored to your needs. Call us at (813) 857-1543 or  to schedule your consultation today!