Real Estate Commisions: What Have You Heard?

Real Estate Commissions: What Have You Heard?

You might have heard about the recent proposed settlement between the National Association of Realtors (NAR) and some home sellers. It's a big topic in the real estate world, and I know it can raise questions. Here at the Levinson Real Estate Team, we prioritize client transparency and putting your needs first, so let's break down what this means for you.

What's the settlement about?

Lawsuits were filed against NAR (National Association of Realtors), claiming their policies limited competition and potentially inflated commission fees for sellers. The proposed settlement aims to resolve those lawsuits.

What's in the settlement?

• Money: If the court approves it, NAR would pay out $418 million over four years.

• Commission changes: The settlement proposes removing the policy that required real estate agents to offer a standard commission split when working together. This would allow more negotiation between you and your agent on commission fees. Previously, the agent who listed the property negotiated a commission with a Seller, then would share a portion of that negotiated commission with another Real Estate agent that represented a buyer for the property. 

• New MLS requirements: For transactions with buyer agents, there would be a new requirement for a written agreement between the agent and the buyer outlining their representation. 

• Who's covered? This settlement applies to NAR, its members (over a million!), most state and local realtor associations, and most brokerages that have NAR members (with a few exceptions for very large companies).

How does this impact Levinson Real Estate Team clients?

At Levinson Real Estate Team, we've always operated with a client-centered approach that aligns with many of the proposed changes.

• Focus on negotiation: We've always believed in open communication and transparency with our clients. 

• Written agreements: We already prioritize clear communication and get everything in writing upfront, including buyer agent agreements. This ensures everyone is on the same page from the start. 

What does this mean for you?

The proposed settlement emphasizes a more transparent and client-focused approach to real estate transactions, which is exactly how we operate at Levinson Real Estate Team. You can expect the same level of commitment to getting you the best possible outcome, from expert negotiation to clear communication.

Want to learn more?

Here are some resources to dig deeper:

• NAR's press release: [NAR settlement ON National Association of REALTORS® (.realtor) cdn.nar.realtor]
• News article on the settlement: [NAR settlement real estate ON The Real Deal therealdeal.com]

If you have any questions, feel free to leave a comment below! We're always here to help you navigate the real estate market.