There could be more flexibility in fees!

The National Association of Realtors (NAR) recently settled a global lawsuit regarding agent compensation policies and home listing requirements. With court approval, the changes are scheduled to go into effect in mid-July 2024.

What are current practices?

Home sellers typically pay commissions to both their own agent and any buyer's agent. Commissions vary but are commonly 5% to 6% of the sales price.

Selling agents using the NAR's Multiple Listing Service (MLS) show the amount a buyer's agent will earn from the sale. The major changes include:

  1. The seller will no longer automatically pay both agents, though they can choose to do so.

  2. The amount the buyer's agent will make from a sale will no longer appear in MLS descriptions.

  3. Sellers and buyers will have more flexibility in their negotiations, which could result in lower commission costs and lower home prices.

How will the changes impact the process?

  • Sellers can still negotiate the commission they pay, and they may be able to secure a lower cost. They can agree to pay commission for the buyer's agent, but it's not required.

  • Buyers can negotiate both the commission they will pay and how they will pay it, whether out of pocket or through other avenues.

The bottom line is that buyers and sellers will still compensate agents for the many services they provide, and these fees will be negotiable, like always.

Your real estate agent and Greenway's Loan Officers will stay up on any changes that may occur before court approval. Please reach out with any questions or concerns, and we'll be happy to assist.

Contact Greenway Mortgage