Realtors & Home Buyers/Sellers Making Plans in a Post-NAR Settelment Environment

1. Traditionally sellers pay commissions for both the listing brokerage/agent they hire to list their home and  the buyer brokerage/agent that represents the buyer. This commission structure is still an option, with the exception of the buyer brokerage commission, which is no longer allowed to be advertised in the MLS. Ultimately, buyer agents won't know if a seller is offering 2% commission, 3% commission, or otherwise  to the buyer brokerage by simply viewing MLS Listings.
2. Commissions, traditionally paid by the seller, who in today's world is likely to have significant equity to cover commissions paid to licensed realtors - have always been negotiable. Commissions remain negotiable. The documents in which commissions are determined have been updated to ensure clarity of this point.
3. Buyer's agents need to have a signed Buyer Representation Agreement with buyer clients, prior to showing them homes. This process also existed previously, however the timing requirement (being prior to showing any homes) is more specific going forward.
4. Buyer Representation Agreements will also note the amount of commission the buyer will pay the Buyer Brokerage, in the event the seller is offering a highly reduced commission or perhaps not offering a Buyer Broker Commission - a notion that some sellers are considering, after reading headlines about the NAR Settlement.
5. It will take time to see if and how any of these changes truly affect the market, specifically home values. Sellers considering a reduced commission offered to the brokerage representing the buyer, may face reduced offer prices, as buyers need to set aside funds to pay the brokerage representing them in what is typically the largest financial transaction of ones' life.
6. There are many variables and perspectives on these updates. As I see in all of my transactions whether I'm representing a seller, a buyer or both parties, negotiations are always part of the process. These changes present another layer of discussions, prior to transactions occurring - which in the end are focused on consumer transparency.
7. Many Realtors operate an established business, are members to various Realtor associations, cover costs for ongoing brokerage legal counsel, stay current with education/relevant laws, and more - all to provide proper professional guidance to clients and ensure a profitable and legal transaction closes.

The upcoming changes and affects of those changes are subject to change as the industry continues to evolve. Check back for further updates.