Understanding the NAR Settlement: What Buyers and Sellers Need to Know
If you’ve been thinking about buying or selling a home, you’ve probably seen some buzz about a recent legal settlement involving the National Association of REALTORS® (NAR). This landmark change is reshaping how real estate transactions work—and it’s important to know how these updates affect you directly as a buyer or seller.
Here’s a quick breakdown of the key takeaways from the settlement and what they mean for your real estate journey:
1. Written Agreements Are Now Required Before Touring Homes
Whether you’re browsing casually or seriously searching for your next home, you must sign a written agreement with a real estate agent before you start touring properties. This includes both in-person and virtual tours. It’s a big shift that promotes transparency and ensures everyone is on the same page from the start.
2. This Applies to Virtual Tours Too
Even if you’re only planning to attend virtual showings, the rule still applies. A signed agreement must be in place, which outlines the relationship between you and your agent, and typically includes what services are provided and how compensation works.
3. Agent Compensation Is Still Fully Negotiable
One thing that hasn’t changed? The flexibility around agent fees. Buyer and seller agent compensation is still completely negotiable. You have the right to discuss terms and shop around to find the best fit for your needs and budget.
4. No Written Agreement Needed for Casual Conversations
If you’re just chatting with an agent at an open house or asking general questions about their services, you’re not required to sign anything. This change is about formalizing the relationship once you’re actively working with an agent to view homes, not about limiting your ability to explore your options.
5. Ask Questions—It’s Your Right!
Now more than ever, it’s crucial to understand the value your agent brings. Ask about their services, how they get paid, and what agreements are required. Transparency benefits everyone, and these changes are aimed at making the real estate process more open and informed.
Final Thoughts:
The NAR settlement is a significant move toward greater transparency and accountability in the real estate industry. Whether you’re buying or selling, taking the time to understand these new requirements can help you navigate the market with confidence.
Still have questions about how this impacts your next move? Reach out—we’re here to help you every step of the way!