08/13/2024
After 15 years as an originator, Iāve seen a lot in this industry, and Iām excited to share why the NAR settlement is actually a great thing, especially for buyers!
Hereās whatās been happening: You might have heard that as a buyer, you donāt have to pay for your realtorās services. While thatās often the case, thereās been some confusion around how commissions are actually handled, which is why weāre seeing changes now.
The reality is, that whether itās you or the seller covering the cost, your realtorās commission gets paid either way. Traditionally, this commission was set by the MLS (Multiple Listing Service). So, if your realtor expects 3% but the listing only offers 1%, thereās a conversation that needs to happen about how to make up the difference.
Sometimes, this could mean certain homes might not even get shown, which isnāt fair to you as a buyer.
But hereās the good news: things are changing for the better starting August 17th.
Now, before a realtor can represent you, there will be an agreement that clearly outlines how much theyāll be paid to help you find your dream home. Sellers can still cover the buyerās agent commissionāand many willābut now youāll have all the information you need to make informed decisions.
And for my realtor referral partners, while rebates and credits might not always be available for lower FICO borrowers, thereās often more flexibility for those with higher FICO scores (680 and above). In many cases, we can provide rebates that help offset closing costs or other real estate expenses, depending on the rates selected. Of course, this isnāt about quoting rates or getting into the nitty-gritty detailsāthose specifics should come from a loan estimateābut itās important to note that working with experienced lenders can make a real difference.
Now more than ever, itās crucial to work with lenders who donāt inflate interest rates for higher compensation and who are competitively priced. A well-priced lender can be a huge asset in helping to manage overall costs.
And just to clear things up, this isnāt about getting rid of buyerās agents. When youāre buying a home, itās crucial to have a trusted realtor by your side, someone who can guide you through every step, from drafting contracts to explaining all the details.
The National Association of Realtors represents over 1.5 million agents, and theyāre here to stay. And no matter what some companies might want (yes, Iām looking at you, Zillow), buyerās agents are still an essential part of the process.
The bottom line? The NAR settlement brings more transparency for buyers, making it easier to understand whoās paying their agentās commission, which is a win for everyone involved.
