Since misinformation has been publicized in the media over the NAR settlement regarding real estate commissions, I wanted to share the facts provided by Berkshire Hathaway HomeServices California Properties so you are informed correctly. Here are the facts you should know.

There’s much the media has gotten wrong about NAR’s settlement, for example, some outlets have suggested that NAR previously set or guided commissions to a standard rate of 6%, however, they do not set commissions, and commissions were negotiable long before this settlement. They are and will remain entirely negotiable between brokers and their clients. And housing prices are dictated by market forces beyond members’ control.

The following practice changes will go into effect in mid-July 2024:
- Cooperative compensation will remain as an option for consumers looking to buy or sell a home—as long as such offers of compensation occur off of the MLS.
- Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concession on an MLS (for example-concessions for closing cost).
- There will be many ways in which buyer brokers could be compensated, including through offers of compensation communicated off-MLS. (1. fixed-fee commission paid directly by consumers, 2. concession from the seller, 3. portion of the listing broker’s compensation).
- MLS participants acting for buyers would be REQUIRED to enter into written agreements with their buyers before touring a home. These agreements can help consumers understand exactly what services and value will be provided, and for how much.
- After the new rule goes not affect, listing agreements should be amended to reflect that offers of compensation cannot be communicated via the MLS.

As we learn more, I will continue to keep you posted. Please feel free to contact me directly with questions.

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