Real Estate
If you are thinking about entering the real estate world, you likely heard that the NAR lawsuit finally came to a close this last week. Since then, so many opinions and doomsday thoughts that have been thrown around about the potential changes that could come. Let’s take a look at what the decision actually means. Then, more importantly, what it could mean for you as you think about selling your house.
The lawsuit revolved around agent commissions. According to The Daily Record, the lawsuits are “claiming homeowners have been unfairly forced to pay artificially inflated agent commissions when they sold their home.” While working to settle the case, the National Association of Realtors say, “The settlement, which is subject to court approval, makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule) that was introduced in the 1990s in response to calls from consumer protection advocates for buyer representation.”
NAR has been in and out of litigation all over the country for years on this topic. The recent settlement puts to rest the long term lawsuits. And it shook the world of real estate quite a bit. The ultimate goal surrounding this was to help you have more transparency around where money goes when a transaction happens.
But what in the world does this actually mean for you?
The first thing to know is that the results of the NAR lawsuit settlement would not go into effect until July of 2024. So if you have any transactions currently in progress, this will not affect you right now. After mid July, there will be 2 different aspects of this settlement that could affect you or your potential agent. NAR describes the first portion by stating, “NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS. However, they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.” Essentially this means that the foundation of the rules have not changed. But the way that agents can communicate about sellers potentially paying for the buyer agent fees has changed.
NAR describes the second by stating, “NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers.” Agents already do this with sellers, now buyers get the same protections!
The best part of this, is that there is an easier way. When you sell your home for cash with Eric and ASDM Homes, we don’t deal in agent fees. If you don’t have an agent, the offer we give you is the full amount you get! We handle closing fees, and there are no agents to pay. So aside from the loan you currently have to pay off, the money is yours! If this sounds like the right fit for your next transaction, contact Eric today to get your cash offer!