The NAR settlement is altering commission practices, requiring written buyer agreements, and mandating compliance with new MLS rules. I’m going to cover how this impacts sellers, buyers, and then home prices.
Sellers: Negotiating commissions has always been part of the real estate process, but it’s gaining unprecedented public attention following recent developments. My approach centers on a collaborative relationship with the seller, adjusting commissions based on the final sale price. With the recent changes, I anticipate a shift towards more competitive commission structures, especially as some listing agents might advise sellers against compensating the buyer’s agent.
Experienced Buyers: I would expect that seasoned buyers might approach the listing agent directly to avoid buyer’s agent commissions, particularly if they’re familiar with the area. However, they might still engage buyer’s agents when purchasing in unfamiliar locations.
Inexperienced Buyers: This shift most significantly impacts inexperienced buyers, who benefit most from the guidance of buyer’s agents. Often, these buyers have the least available for down payments. If they’re now being asked to pay for an agent, this could influence their offer price and what they can afford, further intensifying the challenges faced by first-time and inexperienced buyers in a competitive market.
Home Prices: I believe this will have no impact on prices. Sellers will always want the most amount possible, now sellers will just make slightly more.
Hope this is helpful!
Chris
