NAR Settlement to Transform Real Estate Brokerage Practices
The National Association of Realtors' $418 million settlement will change how broker commissions are shared, aiming to increase transparency and choice for consumers.
- The National Association of Realtors announced a settlement that will prohibit sharing compensation offers on MLSs and require written agreements with buyers, effective mid-late July 2024.
- Real estate agents and brokers are unlikely to become obsolete, with nearly 90% of homebuyers historically choosing to work with them.
- The settlement could lead to more competition and potentially lower commission rates, although immediate changes in commission structures are not anticipated.
- Experts predict the new rules may make it harder for first-time homebuyers to afford fees, with potential long-term effects on housing affordability.
- The changes are expected to offer consumers more options in compensating brokers, while maintaining the value added by realtors in the homebuying process.
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