The Real on the NAR (National Association of Realtors®️) Lawsuit

The word on the street is that this may be the end of the real estate world as we know it and yet, no one has bothered to tell you what's really happening!

Here’s the skinny…

For decades, commission earned by Realtors®️ has consistently been around 6% of the sale price—usually with a 3% split for the buyer’s and seller’s agent.

This NAR (National Association of Realtors®️) lawsuit challenged this longstanding business practice and how these practices affect property pricing. NAR and the brokerages have vowed to appeal the verdict and this discussion continues. 

How will this verdict impact me as a buyer or seller?

The truth is that not much is expected to change in the near future. The longer-term impact of the verdict may be that the pairing of buyer’s agent commission and seller’s agent commission may eventually be separated. 

Regardless of all the noise around this subject, here is why you should work with a Realtor®:

Expertise

I have extensive knowledge of the real estate market, local regulations, and property values, providing you with valuable insights and guidance throughout the buying or selling process. 

Negotiation Skills

I am a skilled negotiator who can advocate on your behalf to secure the best possible deal, whether you’re purchasing a home or selling one. 

Access to Listings

I have access to a wide range of property listings, some of which may not be publicly available, giving you more options to find the right property for your needs.

As a Realtor®️, you can help your buyers and sellers streamline real estate transactions and ensure they make well-informed decisions.

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Frequently Asked Questions

What does the NAR lawsuit mean for buyers and sellers?

The National Association of Realtors® settlement, effective August 2024, changed how agent commissions are handled. Buyer-agent compensation can no longer be advertised on the MLS, and buyers now sign a written agreement with their agent before touring homes that states the fee. Commissions have always been negotiable, and sellers still often cover the buyer-agent fee through a concession.

Do buyers now have to pay their agent directly?

Not necessarily. Buyer-agent fees are negotiable and can still be covered by the seller, the buyer, or a combination, but the terms must now be agreed to in writing up front. Discuss the options with your agent before you start touring homes.