Updates to the Realtor NAR Settlement that impact all homeowners

Updates to the Realtor NAR Settlement that impact all homeowners

For those not aware there is a settlement between all realtors and the government about a business practice that is going to change in August of this year, it was originally slatted to take effect in July but has now been pushed back.  How does this impact someone looking to sell their home?

In many ways.

First and the most easiest to understand, the burden to pay the buyers realtor has shifted from the seller to the buyer. The buyer of a real estate is already dealing with a lot of costs.  Adding a realtor fee of 2% to 3% is just too costly for most buyers to bare.  Further to this there is no way for a buyer to include the cost of their realtor into the loan amount so it can be financed without the seller agreeing to a sellers concession. A sellers concession means the seller will increase the price of the home and pay the buyers realtor like they do now and before this settlement is required to go into effect.  Problem with this is it means the seller will pay a higher transfer tax for the states that have that, and the home has to appraise for the higher amount.

Also VA loans ones designed for the veterans of our armed forces forbids the buyer to pay any real estate commission at all.  Meaning anyone looking for a home utilizing a VA loan to help purchase the home, will not be able to find one if they have to pay a realtor as well.

This all services to limit the number of people whom can qualify to buy your home.

Second, most buyers because of the reason stated above will forego working with a realtor because of the added expenses.

Third, since the MLS, multiple listing service most realtors belong to where all the realtors share their listings in hope of exposure, will no longer permit any content about compensation to be discussed. In other words, today a realtor can safely assume any listing on the MLS is offering something to the buyers agent. After August they have to call each listing and ask that question, what happens if one does not offer any buyers agent commission? Agents will not show it to their buyers because that home has an added cost, namely their fee.  They are going to seek out homes that offer compensation, and since not displayed anywhere they have to call everyone.

Fourth, someone selling without a realtor can easily get very similar exposure, this further diminishing the role a realtor plays.

Lastly it is no time better than now to sell your home and save thousands of dollars.