NAR Settlement Updates
Hey Friends,
As some of you are aware there have been some updates going on in the real estate industry and I have some great news for you! The two main changes were:
Moving forward every buyer working with a real estate agent will need to sign a buyer's representation agreement detailing the terms and cost of the representation
Sellers can still offer some compensation but it will not be posted publicly
While I think this is a great move for transparency and I’m excited that buyers will now have a clear understanding of how their agent gets paid. I was initially worried most of all about my first time home buyers and if they would now be required to bring additional cash to the table to buy their first home. But GOOD NEWS! If sellers do offer to pay the buyers agent commission it will not count against buyers ability to ask for credits. Currently buyers have a maximum amount of allowable seller credits they can ask for (3% or 6% depending on the program) and it’s a huge relief to hear that the buyers agent commission will not have any impact on that limit.
Which means that regardless if a seller offers a full credit for buyers representation, a partial, or no credit at all - buyers can still work this cost into their offer to the seller.
As always, please reach out with any questions! I’m here to help navigate this process and I’m very excited for this increase in transparency.
Below is a quick reference guide on timelines for all of these changes
