Navigating the NAR Settlement: What It Means for Real Estate in Greater Boston

If you’ve been keeping an eye on recent real estate developments, you’ve likely heard about the National Association of Realtors (NAR) settlement and its potential impact. With these changes going into effect just two days ago, it’s crucial to understand what they mean for agents, buyers, and sellers in Greater Boston.

What’s the NAR Settlement All About?
In essence, the NAR Settlement focuses on how commissions are negotiated and disclosed in real estate transactions. The promoted goal was to enhance transparency and competition, particularly regarding how commissions are shared between agents - and of course to achieve a substantial payday for the plaintiffs' attorneys.

Impact on Real Estate Agents
For real estate agents, there are two main changes to note:

1. Buyer Agency Agreements: Agents must now have a formal agreement with buyers outlining the services provided and the associated fees.
2. No Advertising of Cooperating Compensation: Seller’s agents can no longer advertise cooperating compensation (or buyer's agent incentives) in the MLS.

At Board & Park, we’ve long required buyer agency agreements, so we’re already ahead of the curve. Transparency and clear communication have always been our priorities, and we’re committed to continuing this approach to ensure our clients remain well-informed.

What About Buyers?
As a buyer, you’ll now be more aware of what to expect in terms of agent compensation before you even tour a property. You’ll need to sign a buyer's agency agreement that details the services your agent will provide and their fees. Despite media headlines suggesting otherwise, offers can still include a provision for the seller to cover the buyer’s agent’s fee. This fee will typically be part of the purchase price, as it always has been, and negotiated into the terms of an offer.

Sellers, Here’s What You Need to Know
Sellers might hear that they no longer need to pay buyer agents, but that’s a misunderstanding. Sellers have always had the option to negotiate the terms of agent compensation. The real change is that you won’t see this compensation advertised in the MLS anymore. Instead, you should expect to discuss this as part of the offer process. We advise sellers to evaluate any offer based on the net price and be prepared to cover buyer’s agent compensation if it’s part of the negotiation.

A Note About Our Local MLS
You might be wondering about MLSPIN, our local Multiple Listing Service. Unlike some other MLSs, MLSPIN isn’t bound by the same terms as the NAR settlement because it’s resolving a different case and is not a Realtor-owned MLS. However, we as Realtors, are still required to follow new rules, such as not advertising cooperating compensation in MLS and continuing to use buyer agency agreements.
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How We’re Adapting
All of the agents and brokers at Board & Park are prepared and committed to embracing these changes while maintaining our high standards of service and transparency. If you have any questions or need more details, don’t hesitate to reach out. We’re here to help you navigate these changes and ensure you have the best possible experience in the real estate market.

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