BIRMINGHAM, Ala. (WBRC) – The National Association of Realtors (NAR) will pay $418 million and change its rules to resolve lawsuits alleging homeowners are paying high brokerage fees. Agreed.
In a press release, the Birmingham Association of Realtors (BAR) shared two big changes to expect this summer.
First, joint reward offers will be removed from the MLS. Offers of compensation may continue to be an option that consumers can pursue outside of the MLS through negotiation and consultation with a real estate professional. Sellers can offer concessions to buyers with respect to the MLS (for example, concessions to the buyer's closing costs).
Second, while NAR has long advocated the use of written contracts, the settlement agrees to require MLS participants working with buyers to enter into written representation agreements with buyers. Did.
“Every consumer is going to see a change,” added Greater Alabama MLS 2024 Chairman Quentin Carter. “These changes include indemnity offers no longer being shared on the MLS and requiring MLS participants to agree in writing when representing homebuyers, which is in line with long-standing best practices. We want to make clear that collaborative coverage remains an option for consumers to negotiate directly with real estate professionals.”
Kevin Sargent, treasurer of the Birmingham Association of Realtors (BAR) and MLS (Multiple Listing Service), said the new rules could limit what homebuyers focus on.
He said, “There will be some disenfranchised buyers, VA buyers who won't be able to negotiate fees on the loan because that's a requirement for that type of loan.” “Alternatively, there may be first-time homebuyers who don't have the extra cash to pay a buyer's agent, but still need one. I need your advice.”
All these changes should not discourage potential buyers. Experts say everything is negotiable and it's even more important to have these conversations upfront.
If the settlement is accepted by the court, these changes would go into effect in mid-July.
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