NEw news: Nar Settlement
You may have heard about the National Association of Realtors recent settlement of a class-action lawsuit over real estate agent commissions. While the settlement hasn’t been formerly approved by a judge, there are still many myths and a great deal of misinformation floating around the news and social media leaving consumers questioning what the settlement really means for future real estate transactions. Here are the answers to frequently asked questions:
Have the National Association of Realtors, state and local associations, and Realtors been fixing the Realtor commission rate at 6%? No, Realtor commissions by law have always been negotiable. In fact, the national average for commission is 5.49%. Most commissions range from 4-6% and can be as high as 10% depending on the type of property and many other variables.
Will housing prices go down as a result of the settlement? No, agent commissions do not affect the price of housing. Housing prices are determined simply by supply and demand. When demand is high and supply is low, prices are generally higher. When demand is low and inventory is high, prices are generally lower. We are still in a market of high demand and low supply. Even if seller’s save 3% on the buyers agent commission, they likely won’t pass that along to the buyer they’ll put it in their own pocket. Check out this link for more information: https://fortune.com/2024/03/24/homebuyers-expecting-realtor-settlement-savings-face-letdown/
Will buyers have to pay buyer agent commissions after July? Not necessarily. The terms of the settlement no longer allow for buyers agent compensation to be published on the MLS and as always, commissions will remain negotiable for all parties involved in the transaction. However, sellers may still pay a buyers agent commission and many sellers will still see the value in buyers agent compensation.
Whether you are a buyer or seller, the best thing you can do as a consumer is work with an experienced Realtor who can guide you through industry changes. If you have further questions, feel free to give any of our agents a call.
