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NAR settlement 8/17/2024

We have always been responsible for confirming the transaction information. Just because the MLS said X% doesn't mean it wasn't "negotiated" at a different percentage or amount. All commissions have always been negotiable, so the appraiser's responsibility has not changed. I'm certain most MLS services are working on or considering a field or method to post the information. In the past couple of days, I saw three field choices that might be added to California's largest MLS. I also heard a large MLS in the eastern US was considering adding a single field for reporting after closing. The point is some MLS systems are trying to find a solution. The problem is that the listing company would be responsible, as most selling companies would not have access to edit the information. Last I heard, NAR's legal team was going to weigh in on the idea.
 
Raven59 said:
We have always been responsible for confirming the transaction information. Just because the MLS said X% doesn't mean it wasn't "negotiated" at a different percentage or amount. All commissions have always been negotiable, so the appraiser's responsibility has not changed. I'm certain most MLS services are working on or considering a field or method to post the information. In the past couple of days, I saw three field choices that might be added to California's largest MLS. I also heard a large MLS in the eastern US was considering adding a single field for reporting after closing. The point is some MLS systems are trying to find a solution. The problem is that the listing company would be responsible, as most selling companies would not have access to edit the information. Last I heard, NAR's legal team was going to weigh in on the idea.
Click to expand...
Well NAR was all in a tizzy because VA would not allow Veterans to pay the buyer broker but VA sent out a circular reversing that decision yesterday I think.
 
This will likely be an evolving issue as it begins to play out in the market.
 
  • Agents working with a buyer must enter into a written agreement before touring a home. Ahead of August 17, NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about revised forms. NAR policy does not dictate terms of buyer agreements, but NAR has created resources to assist with implementation of the settlement terms—such as tips on clarity and emphasizing consumer choice—including our “Written Buyer Agreements 101” resource, available here.

Above paragraph is what NAR expects agents to do with a buyer.
Practically speaking, a listing agent would require a buyer to sign a doc before coming into the listing property.
This could complicate matters. If buyer is working with a buyer agent, listing agent could claim buyer going to open house could have commission to listing agent if doc is written to listing agent's favor. That's what I would do.
I feel sorry for first time buyers in how they will be at disadvantage in competing with investors like me. Investors have advantage of seeing and making offers faster since in a seller market, time is the essence.
 
the buyer agent is the representative of the buyer, they already have an agreement between themselves, about showing them a house and getting paid. i think the MLS would have a digital signature for a buyer agent showing each listing. make the appointment, check the sign doc box agreed to by all realtors.
the future thought was that the 21st century was going to be simple, and paper free, is now more paper work and more minutia.
 
Tom D said:
the buyer agent is the representative of the buyer, they already have an agreement between themselves, about showing them a house and getting paid. i think the MLS would have a digital signature for a buyer agent showing each listing. make the appointment, check the sign doc box agreed to by all realtors.
the future thought was that the 21st century was going to be simple, and paper free, is now more paper work and more minutia.
Click to expand...
During open house, anyone can come into the listing. That's when listing agent has opportunity to have buyer sign doc to their advantage.
Open house is not only selling the listing but to get buyers working for them. Many looky loos don't have a buyer agent.
When a listing has open house near I live, I'm looky loo checking it out.
I always recommend neighbors to check on nearby listings.
During appraisal, I asked if owner seen the home that sold a block away. They usually say their house is much better.:ROFLMAO:
 
Currently, MLS shows "concessions", and agents can put in there what they negotiated out of the sale price for repairs, closing costs or anything else. Right now, we do not ding the sale/list price for 2% or 3% co-broke commission which is likely coming from the Seller's pocket out of the gross sale price that is recorded.

Going forward, will all agents only negotiate the "listing" side of the commission with the Seller? I wouldn't; I'd negotiate a total commission with Seller of 4%-5%-6% or whatever to cover the transaction. It would cover me if I double ended the deal and did the work of the listing agent and also did the work of bringing the Buyer through his financing through closing. In addition, in most cases, Buyers are sensitive to financing terms, like 10% or 20% downpayment, and if they have to come up with an additional 2%-3% out of pocket to pay Buyer's Broker, that may knock them out of their financing, rate, downpayment %. But... they can negotiate in the sale contract for seller to pay their agent X%, so that way their % downpayment is not eaten away by their own cash outlay. Or they can negotiate with the listing broker for that broker to split what the listing broker is getting. Only if we see the concessions in writing in MLS will we be aware of the concession, which currently isn't a concession: it's part of the Seller's commission cost. Closing cost concessions are an additional seller cost if negotiated in the sale price.

Will a listing or assisting agent have a contract signed with everybody before they set foot into an open house? I dunno.
Will a Buyer with Buyer's agent who is not present and who doesn't sign a contract at the door of an open house in behalf of listing agent be let in? I dunno.
Will a Buyer's agent contract be for one showing at a time or 6 months? (EEEEEKKKK!!! so many know-nothing agents out there who haven't proven themselves to their potential Buyer clients---I shudder to think---and that will be more litigation, I'm sure)
Will a Buyer's agent demand fee from the buyer who buys an open house if the listing agent closes the sale, even if the Buyer's agent does not show the property or negotiate the sale? I dunno
 
Real Estate business is normal until August 17.
If I had a property to sell, I would do it now. After August 17, there will be confusion with agents and appraisers.
This is the calm before the storm.
 
Beginning August 5, 2024, you will no longer see Co-Op Commission on our MLS. You cannot mention commission in private or public remarks. You will be required to start utilizing the Buyer Broker Agreement as mandated by the National Association of REALTORS®. Here is a copy of that agreement as provided by OREC Buyer Broker Agreement.

FYI - the link is for Oklahoma agents.
 
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