USAToday article by Emily
EDITED May 10, 2024.
Last week, I was published as one of USAToday.com’s Voices regarding the NAR Settlement. I’ve gotten incredible feedback from agents and brokers across the country - thank you!
For many not associated with the industry, this NAR settlement has likely not caught your attention. For us in the business, we’ve been watching the lawsuits pile up across the country for the last year, waiting on the edge of our seats, wondering what would come next.
I still stand by everything I wrote in the article: I’m a Realtor. NAR settlement may not be as good for home buyers and sellers as they think.
I have just a couple new thoughts and questions posed by some of my clients since the article was published.
EDIT: These new changes will take affect on Austin’s MLS system on August 17, 2024.
First, this NAR-induced change in buyer broker commission structure may also affect lending. Since I am not a lender, I purposefully avoided this topic in my article. I still recommend looking to a mortgage broker or lender to answer detailed questions.
For example, FHA and VA loans do not allow the buyer to pay for certain closing costs. Some lending restrictions may have to change in order to help buyers (especially first time buyers) pay their agents and/or accept credits from the seller - seller-paid “buyer credits” are an idea I pose in the article.
EDIT: Freddie Mac has announced that Buyer’s Agent Commissions are allowed to be paid with a seller credit WITHOUT impacting the normal interested party contribution limits. This will remain in place as long as it is customary that a seller is to pay for the buyers agent’s commissions. Read more here.
Second, there are some agents who feel like nothing will change. Some agents feel listing brokers will just demand 6% (which is what got us into this mess BTW) and/or that buyer brokers will just demand the seller pay 3% buyer broker commission at closing.
Maybe it’s the millennial in me, but I hope the new rules enacted by the settlement *do* create some change. I really think new technology can cut effort down for buyers, sellers and their brokers. Changes that could make the process easier, more transparent and more lucrative for everyone.
Lastly, I end my article by hinting at an idea I’m still fleshing out myself. I think a lot of professionals are so focused on eliminating and/or automating the buyer’s agent services. But I actually think that’s the wrong direction. I think it makes more sense to automate the seller and listing services. If it doesn’t turn into another USAToday Voices op-ed, I’ll post it here in the coming months.
If you have read this article and have no idea what’s going on, here are a few links to get you caught up: