What You Need to Know About the NAR Settlement: Impact, Expectations, and Why It Matters

The recent NAR settlement has brought significant changes to the real estate landscape. Whether you’re buying or selling a home, understanding these changes is crucial for a smooth transaction. Here’s what you need to know.

For Buyers: Key Takeaways

1. Buyer Representation Agreement is Now Essential

If you’re working with a NAR-affiliated agent (and chances are, you are), you’ll now be required to sign a Buyer Representation Agreement before you start touring properties. This agreement formalizes your relationship with your agent, ensuring everyone is on the same page.

Why This Matters:
This agreement sets clear expectations regarding roles, responsibilities, and compensation, helping to avoid misunderstandings down the road. It also ensures your agent is fully committed to representing your best interests throughout your home search.

2. Buyer Agent Compensation Is Still a Thing—Just Not on the MLS

The MLS no longer displays buyer agent commissions, but that doesn’t mean they’ve disappeared. Sellers can still offer, negotiate, and advertise these commissions through other channels.

Why This Matters:
Understanding this change helps you navigate the financial aspects of buying a home more effectively. You can still negotiate these costs with your agent and the seller, which helps you stay within your budget and avoid unexpected expenses at closing.

3. Transparency Is Your Friend

At Team Citron, we ensure that buyer agent compensation details are still accessible to our clients and leverage platforms like Compass.com, even if they’re not listed on the MLS. This gives you a clear understanding of the costs involved.

Why This Matters:
Access to this information empowers you to make informed decisions about the properties you’re considering. Knowing that a seller is offering Buyer’s Agent Compensation can be a significant advantage, potentially saving you from paying your agent’s fee out of pocket.

For Sellers: Key Considerations

1. Sellers Still Control Compensation Offers

Despite the changes, sellers continue to have the ability to offer compensation to buyer’s agents. This remains a powerful tool to attract motivated buyers.

Why This Matters:
Offering buyer agent compensation can increase the visibility of your property and attract a broader pool of potential buyers. It’s a competitive advantage that could lead to quicker sales and potentially higher offers, as buyers often prefer homes where their agent’s fee is covered by the seller.

2. Transparency Is Still Key

Even though the MLS no longer shows buyer’s agent commissions, these can still be advertised, offered, and negotiated—just outside of the MLS platform.

Why This Matters:
Maintaining transparency helps build trust and clarity throughout the transaction process. Sellers who prioritize transparency are more likely to attract serious buyers who value straightforward, honest dealings.

3. Supporting Buyers Is a Winning Strategy

With buyers now required to sign a Buyer Representation Agreement, they are more likely to expect sellers to cover their agent’s commission. This can allow buyers to allocate more funds toward their down payment and other closing costs.

Why This Matters:
By offering buyer agent compensation, you reduce the financial burden on buyers, making your property more appealing—especially to those with tighter budgets. This can lead to smoother, faster transactions, benefiting everyone involved.

A Word of Caution

With the real estate market constantly evolving, not every agent is fully up-to-date on these changes. It’s essential to work with a knowledgeable team, like Team Citron, who understands these nuances and can guide you through the process with confidence and clarity.

Real estate may be changing, but our commitment to providing exceptional service and expert advice remains steadfast. If you have questions or need guidance, don’t hesitate to reach out—we’re here to help you navigate these changes successfully.

For more detailed information, check out the NAR Settlement FAQs.