NAR Settlement & Impact on Sellers
What’s Happening?
In brief, a group of attorneys brought a class action lawsuit in Missouri against NAR and won. The lawsuit challenges certain practices within the real estate industry, particularly those surrounding Realtor compensation and the advertising of it. The settlement marks a significant shift in how these practices will need to be handled going forward. Changes took effect locally on August 15, 2024.
For Sellers:
Thankfully, the Exclusive Right-To-Sell Listing Contract remains very similar to mandated contract from prior to the NAR Settlement. The main focus once again falls under Section 7.0 Compensation To Brokerage Firm; Compensation to Buyer Brokerage Firm. This is where we will hyper focus on who is responsible for each Agent’s compensation and exactly how much.
Pros: The cream will rise to the top as they say. There will be more competition among agents, and you will need to identify what you need most from your Agent.
Cons: There may be increased pressure to negotiate commissions, which could complicate the process, cost more or cost less.