NAR SETTLEMENT - OUR TAKE

At Sprinkman Real Estate, we’re honored to be your trusted real estate resource. The recent settlement by the National Association of Realtors (NAR) is likely topping your news feeds, and you may have questions regarding its impact on buying or selling a home. Here is an overview of what we know today, what changes you can expect, and our thoughts on how to navigate your personal real estate journey moving forward. 

THE NEWS

• The NAR recently reached a settlement that will affect how Buyer’s Agent compensation is marketed.

• Scheduled to take effect late July 2024, this settlement is awaiting approval by the federal court.

KEY TAKEAWAYS

• Real estate commissions have always been and will continue to be negotiable for all parties involved in a transaction.

• In Wisconsin, executing a Buyer’s Agency Agreement has been industry standard for over 15 years, so this is less of a change for our firm and clients.

• Nothing about this settlement agreement created more inventory, made the market less competitive, made the transaction less complex, or made homeownership less important for the consumer. 

KEY CHANGES

• Historically, Buyer's Agent compensation has been marketed on the Multiple Listing Service (MLS), but the new rules will prohibit this method of marketing.

• Buyer’s Agents and their buyer clients will be required to enter into a written agreement detailing how the Buyer’s Agent compensation will be handled before visiting properties together.

FOR BUYERS

• Working with a Buyer’s Agent offers tremendous benefits due to their expert knowledge on property values, contract negotiations, transaction timelines, as well as resources and connections to help ensure a successful home sale. Additionally, Buyer’s Agents have a fiduciary responsibility to their clients, which is a legal obligation to act in the best interest of their clients.

• Amidst this pending legislation and ever-changing market conditions, we feel it’s important for buyers to engage with seasoned Buyer's Agents to effectively secure a home. While it has always been in the buyer's best interest, it is now more critical than ever.

FOR SELLERS

• The proposed settlement prohibits the display of Buyer's Agent compensation on the MLS. However, sellers retain the right to offer Buyer's Agent compensation and can market this through listing-specific brokerage materials.

• We remain committed to attracting the most buyers with compelling offers in the current market, ensuring our sellers achieve the highest net result on their significant financial investment.

OUR THOUGHTS 

This settlement has not intrinsically changed much of our process — it has just introduced a slightly new landscape. With over 25+ years of proven experience and a steadfast dedication to excellence, we pride ourselves on delivering seamless transactions, trusted market insights, expansive resources and above-and-beyond quality of communication. 

We’re confident we can enter this new era and continue to exceed your expectations. Please reach out if you’d like our help or if you have any questions on the information above. We look forward to hearing from you soon.