What it really means for home buyers and sellers from a seasoned realtor.
The recent NAR settlement with the DOJ regarding disclosure of cooperative compensation or buyer’s agent commission. There is a lot of misinformation going around so I want to help clarify what these changes will mean for you as either a buyer or seller. The NAR commented directly about the lawsuit in an article in Fortune Magazine (read more here).
I found the easiest way to summarize what to expect from the DOJ ruling is to tell you what IS and what is NOT happening. What the NAR lawsuit DOES change is the way we discuss and disclose a buyer’s agent commission. What the NAR lawsuit DOES NOT do is award buyers or sellers free or reduced buyer’s agent representation. This service will remain valuable to both buyers and seller to ensure a smooth transaction with highest possible value gained.
The media has falsely alleged “thousands in savings” to sellers and buyers as a result of the recent lawsuit. The truth is that although we will be changing how we disclose, advertise, and negotiate a buyers agent’s fee- it does not change the agent's value in a transaction or allow free representation from a licensed broker. There will be discounts advertised, but as they say “you get what you pay for”.
To continue giving home owners and buyers the best service possible I foresee little change in the amount of commission paid to a buyer’s agent. What I do predict is changes in who is paying for it, how it is paid for, and a lot more paperwork for clients which is always a result of hefty lawsuits. I also predict positive changes to the industry. Agents having more freedom to represent clients in a way that is less “one size fits all” and I believe as an industry this will strengthen our reputation and our value in the eyes of the public. Change is hard but change is good!