By Lisa Marie Boyd, Managing Principal Broker & Owner
Town & Country Realty has provided expert, professional real estate advice and has successfully navigated industry changes for over 73 years. Regardless of changes that may come, Town & Country Realty brokers remain your trusted advisors. This will never change.
Recently you may have heard through a variety of social media and traditional news outlets of a proposed settlement by the National Association of Realtors (NAR) from a class action lawsuit. To clear up any confusion and debunk sensationalized and inaccurate headlines, we are here to set the record straight with truths.
The proposed NAR settlement addresses two issues:
- Sellers who offer compensation to pay the buyer’s broker may not disclose it on a multiple listing service (MLS), but it may be listed on brokers’ websites or third-party sites.
- Buyers must enter into a written representation agreement that expressly identifies buyer representation and the broker’s compensation for services before touring a home.
Consumer choices have not changed regarding real estate services and compensation. Commissions have always been negotiable and continue to be so. The NAR has never set commissions or suggested a “standard rate”. Each firm or independent broker has its own business model ranging from charging flat fees, payment by the hour, or a commission percentage of the gross purchase price.
While buyer broker representation agreements have been best practice for many years, they were considered optional. It will now be required. When the buyer enters into a service agreement with a broker, the buyer can negotiate with the seller to pay the fee from seller’s proceeds when presenting an offer to purchase. The buyer may also elect to pay the fee themselves by bringing additional funds to closing. A seller can still offer to pay the buyer’s brokers compensation to help attract the most buyers to their property.
Some media has stated the proposed settlement is the end of commissions, and it simply is not true. Nor is it likely that home prices will drop. Home prices are driven by supply and demand. The Mid-Willamette Valley has had more demand than supply for the past decade, a trend we expect to continue. Trusted, knowledgeable real estate professionals continue to be an integral part of the buying and selling process.
In short, it remains business as usual with new ways, and restrictions, to communicate more explicitly how each party is compensated. Whether buying, selling, or just curious, contact your trusted Town & Country Realty Broker today to answer all your real estate questions. Call us today at 541-757-1781 in Corvallis or at 541-924-5616 in Albany.