Here’s What the Recent NAR Changes Mean For You

We’ve been hearing that there’s confusion around the recent NAR settlement and what the changes mean for Buyers and Sellers. We’re even hearing that some Realtors are having trouble explaining it to their clients(!) Here’s a summary of how these changes affect those in Oregon:

1. Agent service fees (also known as “commissions”) are negotiable and always have been.
It’s been customary for Sellers to cover a Buyers’ Agent’s service fee at closing, building it into the sales price of a home. This has always been a strategic marketing decision between the Seller and their Agent as it increases the Buyer pool. Most Buyers don’t have the cash to pay for their down payment, closing costs AND their Agent’s service fee. This essentially allows them to finance that fee within their mortgage.

2. Offers of compensation (Seller offering to pay the Buyers’ Agent’s service fee) can no longer be advertised on any Multiple Listing Service (MLS).
These are local marketplaces used by both Buyer and Seller Brokers to share information about properties for sale. Agents can advertise this Seller concession on off-MLS platforms like social, email and websites.

3. A contract is now required to work with a Realtor as a Buyer.
We can’t show you homes until we sign an agreement that we’re working together. It’s now the law. If you don’t enjoy working with us, you can cancel at any time with no fee. Not all Realtors make it that simple, but we do. Worth noting: Sellers are already required to have a contract in place with their agent to list their home for sale.

More questions? Please call, text, email me; I’m happy to discuss further. Keep in mind that every state is different, but I can connect you to someone great and trusted in your area.

This information is a reflection of personal opinions and understandings as of Monday, September 9, 2024.