A recent lawsuit and settlement involving the National Association of Realtors (NAR) has sparked discussions about how buyers are compensated for professional representation. Petra Norris, Broker and Owner, clarifies the ongoing practices and reassures buyers of continued support throughout the home-buying process.
Understanding Buyer Representation Fees
Contrary to some interpretations, sellers were never strictly obligated to cover buyer representation costs. This has always been managed through buyer representation agreements, which outline agent services, fees, and payment methods. These agreements typically allow for compensation through the listing agent or seller, or directly from the buyer’s funds at closing.
Impact of the NAR Settlement
The recent settlement primarily removes the option of compensation via the Multiple Listing Service (MLS), if available. This change necessitates more active engagement from buyers, including asking questions and participating in negotiations regarding their agent’s fees. The fundamental arrangement for buyer compensation remains unchanged.
Key Takeaways
- Sellers were never strictly obligated to pay buyer’s agents.
- Buyer representation agreements have always governed compensation.
- The NAR settlement removes MLS as a compensation option but doesn’t alter the core agreement.
- Buyers may need to be more proactive in negotiating agent fees.
Choosing Your Real Estate Agent
Buyers retain the freedom to choose their real estate agent and select compensation structures such as flat fees, hourly rates, or percentages. Factors like an agent’s experience, expertise, and negotiation skills should guide this decision.
Support for Home Buyers
Norris emphasizes that agents remain committed to supporting buyers, especially first-time homebuyers, first-generation buyers, and veterans. The home-buying process is complex, and a professional agent serves as a crucial guide. Resources like Lakeland Real Estate Group’s Ultimate Home Buyer’s Guide are available to assist buyers through each stage. The firm reaffirms its dedication to advocating for clients throughout one of life’s most significant investments.