With the National Association of Realtors (NAR) making headlines, we imagine you may have a few questions. While the settlement is not official until it has been approved by the courts, we are watching closely and anticipating the next steps. Here is what you need to know:
On March 15, 2024, the National Association of Realtors (NAR) announced a proposed settlement of a lawsuit regarding alleged anti-competitive practices.
Pending court approval, the settlement stands to influence the dynamics between real estate brokers and their clients, as well as the broader real estate industry. Yes, there will be some changes to the real estate contracts that we have known to be standard business practices.
WHEN: If ratified, the settlement is scheduled to usher in new practices by mid-July.
Among the notable changes are:
1) Prohibition of publishing offers of compensation to Buyer's Brokers in the Multiple Listing Service (MLS). While listing brokers can still offer compensation for buyer's broker services, such offers will not be disseminated through the MLS. Expect compensation of Buyer's brokers to take on many forms, including payment from Buyers and incentives from Sellers.
2) Mandating written agreements between buyers and their brokers prior to touring homes. These agreements serve to clarify the scope of services and value propositions for consumers. Expect Buyers' Agents to request signed agreements before showing you listings and touring homes with you.
The Dietz Group has conducted thorough analyses of these changes and their potential impacts on both the market and participants such as buyers and sellers of real estate. We welcome you to reach out to us for further discussion.
Ask away! [email protected]