BY ANNA & MICHELLE
Dear Clients, Friends and members of our Community,
You may have heard or read about the National Association of REALTORS® (NAR) settlement. Let’s break it down.
First of all, commissions are negotiable – they always have been, and they will continue to be, as are the levels of marketing and service. Secondly, the two most important changes that come mid-July are Commissions will no longer be posted in the MLS, and buyers will need to sign a compensation agreement before visiting homes listed for sale.
MLS Cooperative Commissions:
The past practice of the seller paying the buyer agent compensation has worked well for decades. And while sellers have the option not to offer this consideration, that’s not to say that the seller will no longer want to pay the buyer’s agent. The costs of buying a home are significant (downpayment, inspections and appraisal, title and escrow), and many buyers may choose not to look at a property if they also have to pay a commission on top of other buying costs, or they may ask for additional concessions from the seller.
Buyer Agency Agreements:
Nationwide agents will have to enter into written agreements with their buyers. These agreements cover critical elements of their working relationship such as the terms of the agreement, the exclusivity of the representation, the agreed compensation rate, and the agent’s responsibilities to the buyer. We firmly support the requirement of a written agreement as an opportunity to provide increased choices, protections, as well as to create a more informed real estate environment for all parties involved. It’s worth noting that Buyer Agency Agreements are already required by law in Idaho.
While there are still many unknowns about how the NAR settlement will impact the home buying and selling process, what we do know is that we are ready to fiercely support our clients’ best interests through these changes, as we have always done.
We thank you for your trust and invite the opportunity to discuss this with you in person.
Give us a call!
Anna & Michelle
