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Good Afternoon KWCP Family,
As you have likely heard, news broke this morning that NAR was able to reach a settlement that should effectively end all the litigation attacking our industry’s brokers, associations, and MLSs. NAR's explanation and FAQs are here: https://www.nar.realtor/competition-in-real-estate This news follows the announcement from KW regarding a settlement agreement a few weeks ago.
First off, it is important to note that the settlement still needs to be approved by the court, which likely will not occur for many months. So, for now, nothing is changing.
As we all digest such a big announcement, we must cut through the dramatic headlines and scare tactics. In sum, NAR was able to negotiate important protections for the industry that does three important things:
- Ends the lawsuits.
- Provides a broad set of protections against similar class-action lawsuits.
- Requires a new set of MLS rules.
For your real estate business, again it is important to note that nothing is changing right now, as the settlement still needs to be approved by the court, which likely will not occur for many months.
Here’s a quick overview of what those proposed changes would look like:
New MLS Rules. A set of requirements for MLS subscribers that would go into effect in the second half of 2024. There will undoubtedly be lots of questions about how
these will be implemented, but initial feedback is that they largely reaffirm
common and best practices:
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Buyers will continue to be able to be represented by REALTORS, who will need to have representation agreements that address how much they will be paid.
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What’s not changing: Sellers and their brokers will continue to have the option to pay the buyer’s broker.
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What’s changing (late this year if the settlement is approved):
- While MLS subscribers will continue to be able to offer to share their compensation with a buyer’s broker, no longer would that be allowed in the MLS (effective July 2024). Instead, those offers of compensation could still be made, albeit only through separate negotiation, as needed (like commercial brokers do today).
- And a new option will be added: A seller's agent will be able to enter the MLS whether and what their seller client is willing to offer as a concession in the price, such as “$x towards a new roof and x% towards closing costs.”
- MLS subscribers WILL NOT be allowed to put a specific amount of buyer-broker compensation in the concession field. More to come on this point in the coming weeks.
The full settlement agreement is available here.
We will continue to keep you up to date on these critical changes that are impacting our industry and deliver training inside the market centers that focus on articulating the VALUE that you provide to your clients for the compensation that you earn.
This is a time of great change and with change comes opportunity. Continue to focus on delivering the highest value to your clients and we will thrive!
#StrongerTogether
Onward!
Kymber
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