Ep. 109 - The Sky is Falling! NAR Settlement Eliminates Real Estate Commissions

No, the sky is not falling.  On March 15, 2024 the National Association of Realtors (“NAR") settled a $5 Billion Buyer Broker Commission lawsuits brought by class action attorneys for $418 Million Dollars.   In this Episode we break it down. First we discuss how commissions work currently and who pays the commission.   Then we discuss the new rules.  First that Buyer’s will negotiate commissions directly with their agents.  Agents can not claim there is no cost to Buyers, unless they truly will not charge them.  Seller’s can still pay the Buyer’s Agent.  Buyer’s Agents will be required to sign agreements with Buyers setting forth what they will charge.  It will need to be an amount can not be open ended (like whatever the seller offers).  And the Multiple Listing Service can no longer display an offer of compensation to the Buyer’s Agent.   We talk about how these rules will work in the future, both in the short and long term.   And clarify that this lawsuit and settlement does not change anything about renters, the lawsuit had nothing to do with renters, but some or most of these practices will be put in place for tenants regardless.   Why did the NAR agree to this Settlement?  Did they “sell us out” or did they have a VERY good reason?  Tune in and find out!!!!         Have an idea for a podcast? Try www.podpopuli.com and their Posterity Podcasts program to create an 8-episode podcast series to tell your stories.   Shop podcast T-shirts:   https://www.prowrestlingtees.com/matthewmania   Check out some of the best vendors and service providers in Florida: https://www.realestatefinder.com/preferredvendors   Subscribe to our newsletter or see past issues at: https://www.realestatefinder.com/newsletter     Brought to you by:   Matthew H. Maschler, Esq. Real Estate Broker (561) 208-3334 www.RealEstateFinder.com