Welcome back it is Todd Duvall again I am coming to you from Charlotte, NC. I feel I need to clear some things up about the recent NAR Settlement. There’s been a lot of information out there about it and much of it is incorrect. Many articles said the 6% sellers fee was gone. While we customarily charged 6% and a portion of that paid the buyer agent for bringing a buyer for their home. The truth is it was never a fixed amount and the sellers had an option of how much they had to pay the buyer’s agent in a transaction.
I’ll show you on the most recent 2024 Listing Agreement that that option is NOT GONE. It’s actually never been a requirement a seller had to pay a buyer agent anything at all. (Our Multiple Listing Service - MLS did require a seller to pay something to the buyer agent. That could have been as little as a penny but it had to be some compensation. That MLS rule is now gone.) On this listing agreement you will see the option to pay a buyer agent is still available. The problem is we, as a profession did not explain that very well. Some realtors were and are great at it but for the most part the industry failed the public and we are reaping those benefits now.
Here is a snapshot of the most current listing agreement.
As you can see the offer to pay a buyer agent still exists. But in no way does this mean the seller has to pay anything. See the highlighted area in RED. That line was added with the latest update to the listing agreement.
As you move forward in your buying and selling life keep in mind to always turn to a trusted REALTOR®️. They have the real information and will explain it to you. If you have a REALTOR®️ you are working with now ask them what it all means. If they don’t explain it to you in a way that makes sense to you maybe consult another agent or simply tell them it’s not clear.
A word of caution when you think of consulting another agent. If you have a signed agreement with an agent other agents cannot assist you. Our agency law forbids consumers with working with more than one agent. So before you sign the agreement make sure you have all your answers you need to make that decision.
A final thought.
If we as an industry had been better at explaining the process and how we are compensated we most likely would not have this lawsuit in the first place.