Exposing NAR Lawsuit Myths

by Keith & Sheila Campbell

On Friday, March 15, 2024, The National Association of Realtors® (NAR) has agreed to a landmark settlement in industry lawsuits, paying $418 million in damages and agreeing to sweeping changes in the U.S. commission structure. Legal counsel for the trade association agreed to the settlement terms early Friday morning.

According to NAR’s own statement, today’s settlement, if approved by the federal court judge, would settle all legal claims against NAR, as well as “over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.” Along with paying $418 million in damages, NAR has agreed to put in place a new rule prohibiting offers of buyer broker compensation on the MLS.

NAR has also agreed to a new rule that would require MLS participants—specifically those working with buyers—to enter into written representation agreements with their buyers. The NAR settlement has brought significant changes to the real estate industry, particularly in terms of commission flows and rules.

This video discusses the impact of the settlement on real estate agents and provides key details about the changes. We also dive into HOW to negotiate commission with buyers and the importance of offering competitive compensation as a seller. The episode highlights who the settlement helps and hurts, emphasizing the opportunities it presents for great real estate agents. It concludes by emphasizing the importance of education and having a strong support system to thrive in the industry.

TAKEAWAYS

The NAR settlement has changed how commission will be negotiated and the rules in the real estate industry.
Consumers & Agents need to understand the key details of the settlement, including the removal of buyer broker compensation from the MLS and the requirement for buyers to use buyer broker agreement when working with an agent.
Negotiating commission with buyers upfront will be crucial, and agents should emphasize their value proposition and the importance of competitive compensation to get maximum results for the client.
The settlement helps agents who use buyer broker agreements, have confidence, and are willing to learn and grow.
Agents who don't use buyer broker agreements will NOT be incompliance. - Experienced professional agents have the opportunity to really thrive in the industry by staying ahead of the curve.