How the NAR Settlement Helps Buyers and Sellers
The National Association of REALTORS® (NAR) settlement introduces more clarity to real estate transactions by making commission structures clearer and requiring buyer agents to have formal agreements with their clients upfront.
Below, we’ve outlined what you should know about these changes and how they can positively impact your experience when buying or selling your next home:
Improved transparency for consumers
One of the most notable changes is the transparency in real estate agent commission structures. It has been common for sellers to pay both their agent’s commission and the buyer’s agent commission, which could leave buyers with questions about how much their agent was earning. With the new rules, the buyer’s agent’s commission must be disclosed upfront.
What does this mean for you? Whether you’re considering selling your home or buying another, you’ll better understand exactly who is getting paid, by who and how much. This empowers you as a buyer or seller to know exactly what you’re paying for, and it helps you shop around for the best value in agent services.
Buyers must have their own agreement
Another notable change is that buyers now need to sign an agreement before touring properties with their real estate advisor. This agreement spells out what your real estate advisor will do for you, the nature of your agreement and relationship, and how much they will be paid. While real estate commissions are always negotiable, this agreement allows you to have full transparency with your agent upfront—creating a more trusting relationship.
Why these changes matter for you
If you're planning on buying or selling your home, these new rules ensure that you’re in the best position possible to understand all services provided, as well as their related costs. As a buyer, you'll have more awareness around the homebuying process, with clearer expectations from your real estate advisor. This transparency can also lead to better service as competition among real estate advisors increases, ultimately benefiting you.
As a homeowner, even if you’re not planning to make a move right now, these changes set the stage for a smoother process whenever you decide to buy or sell in the future.
A better process for everyone
The NAR settlement is making the real estate process more transparent and customer focused. By requiring clearer commission structures and formal agreements with real estate advisors, these changes help ensure you feel more confident and in control whether you’re selling your home, buying your next one, or simply staying informed as a homeowner.
Are you looking for a trusted real estate advisor to help you navigate the homebuying or selling market? Vylla Home, a part of the Carrington family of companies, is here to help with your real estate needs! Are you ready to take the next step?
Are you ready to take the next step? We’re here to help, contact us today!
