4. Complex Negotiations: FSBO sellers may find it more difficult to negotiate deals, especially under the new settlement rules. Buyers, now bearing more costs, may be more aggressive in their demands, making it tougher for sellers to achieve their desired sale price without an experienced agent. Overall, while FSBO can save on commission costs, the complexities introduced by the NAR settlement make selling on your own riskier and potentially less profitable than working with a professional real estate agent.
NAR SETTLEMENT EFFECTIVE AUGUST 17, 2024 T 17, 2024
The recent National Association of Realtors (NAR) settlement has introduced significant changes to how real estate commissions are handled, specifically impacting the way buyer and seller agent commissions are managed. Starting August 17, 2024, sellers are no longer required to cover the buyer’s agent commissions. Instead, buyers may need to negotiate and cover their own agent’s fees through methods such as cash payments, reducing their down payment, or negotiating for the seller to pay part of the commission. Additionally, offers of compensation can no longer be listed on Multiple Listing Services (MLS), which changes how agents and clients approach compensation transparency. Buyers will now need to sign written agreements with their agents before touring homes, ensuring that compensation expectations are clearly outlined. These changes are designed to improve transparency and fairness in the real estate market, but they also require adjustments for both agents and consumers.
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