Lawsuit Settlement Brings Changes to Realtor Commissions, Arkansas Realtors React
The National Association of REALTORS (NAR) has recently settled multiple lawsuits regarding broker commissions, paving the way for significant changes in real estate transactions. This settlement comes after intense public discussion and numerous lawsuits, including the Sitzer-Burnett verdict, which led to uncertainty and copycat lawsuits across the industry.
Despite some misconceptions in the media, the critical aspects of this settlement include a 8 million payment by NAR over four years. This settlement explicitly refutes the idea that NAR dictated a standard commission rate of 6%. Furthermore, commissions were already negotiable prior to this settlement, and it does not introduce any new negotiability.
The agreement brings several key changes to real estate transactions. Agents using Multiple Listing Services (MLS) will need to have written agreements with buyers before showing properties. These agreements must include specific details about compensation and ensure that agents receive only the agreed-upon amount or rate. Commissions remain fully negotiable, and buyers are encouraged to ask about services and fees when selecting an agent.
In response to this settlement, industry professionals believe the changes will significantly impact how real estate transactions are conducted. Many see this as a move towards lower commissions and the removal of low-skilled part-time agents from the market. Sellers will need to reevaluate how they offer buyer concessions, and agents will be required to demonstrate their value to buyers more directly.
