Judge Accepts NARs Settlement Offer I 3 Big Changes

A significant $1.8 billion settlement in the Bernett case has been preliminarily accepted by Judge Steven Bo, bringing about some changes to real estate transactions. However, many aspects of the home-buying process remain familiar.

1. Negotiability of Fees

• Change: Agents will now emphasize that fees and commissions are negotiable.
• Reality: While this reinforces transparency, it’s important to note that negotiation doesn't always mean a fee reduction. The way agents discuss fees may change, but it doesn't necessarily affect the final cost.

2. MLS Commission Searches

• Change: Agents will no longer search MLS listings based on commission amounts.
• Reality: Most agents didn’t use this feature to begin with, so this change has minimal real-world impact. The focus remains on finding the right property based on buyer needs, not commission.

3. Buyer Broker Agreements

• Change: Agents must now present a Buyer Broker Agreement outlining their commission before showing homes.
• Reality: Although this formalizes the process, it reflects how things have often been done: sellers typically pay the buyer’s agent, and the negotiation of fees usually happens behind the scenes between agents. As a buyer, you’re hiring your agent to handle these negotiations for you.

What’s Next?

These changes are part of a proposed settlement expected to be finalized by the end of 2024. While they bring more transparency to real estate transactions, they largely reinforce practices that were already common.

Final Thoughts

Despite these legal changes, the core of the home-buying process remains the same. Your agent’s role is to negotiate on your behalf, and in most cases, the seller covers your agent's fees. Stay informed, work with a reliable real estate team, and enjoy the journey to homeownership with confidence.

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