What the 2024 NAR Settlement Means for Miami Real Estate Buyers & Sellers
A lawsuit against the NAR (National Association of REALTORS®) was filed in 2019 by home sellers who alleged that real estate agents nationwide colluded to keep real estate agent commissions high by requiring sellers to pay the commission of the real estate agent who represents the buyer. Nobody is quite sure how this lawsuit succeeded because real estate agent commissions have always been negotiable, and nowhere in the United States have they ever been non-negotiable. Essentially the lawsuit has done nothing to benefit real estate buyers or sellers and has likely now made the entire process more expensive and complicated, especially for buyers.
What Does This Mean for You?
Buyers:
You will now need a written contract with your real estate agent up front, outlining the services they are providing to you, and the fees that you are required to pay them. This can help you compare agents and ensure you get good value.
Sellers:
You can still offer to cover the buyer’s real estate agent fees, but it won’t be mandatory.
Will It Affect Home Prices?
Probably not. Sellers will likely keep the savings instead of lowering their prices.
The Old System vs. The New System
Old:
The seller pays a total commission to their listing agent, who then offers a portion of that commission to the buyer’s real estate agent.
New:
Offers for buyer agent compensation won’t be listed publicly on the MLS anymore. Buyers will now be forced to negotiate the real estate agent fees directly with their real estate agent.
Do You Need a Buyer’s Agent?
No, but it’s certainly strongly recommended that you work with a buyer’s real estate agent who knows the market, the properties, the laws, and how to negotiate; especially for first-time buyers, those relocating, or those navigating a competitive market. Agents provide invaluable expertise and can save you a lot of time and money.
The Future of Real Estate Commissions after 2024
- Sellers will likely have to offer credits to cover the buyer’s real estate agent fees.
- Listing agent commissions might stay the same or might increase.
- Buyer’s real estate agent commission offers might disappear, replaced by negotiation.
- New fee models for real estate agents (such as flat fees) might emerge.
