Asit Parikh’s Post

Recent NAR Settlement Changes and Their Impact The changes resulting from the recent NAR settlement have introduced new practices in real estate transactions. One of the most notable changes involves the way commissions are listed. Sellers will now list the commissions for the seller’s and buyer’s agents separately. However, the amount offered to buyer’s agents will no longer be displayed on the MLS, though it is typically still offered and paid. Additionally, agents must have a Buyer Representation Agreement signed with a buyer before showing any homes. These changes aim to enhance transparency and may introduce new costs for buyers, but they also ensure clearer and more defined representation in real estate transactions. The Buyer Representation Agreement includes essential terms such as the duration of the agreement, compensation details, and the scope of the agent’s representation: *Length of Agreement: Typically up to 3 months in CA, depending on the arrangement. *Compensation: Varies based on the terms agreed upon between you and your agent. *Representation: Your agent is legally obligated to act in your best interests and maintain confidentiality of your information, adhering to fiduciary duties. If you're ready to begin your home search or have questions about how these updates may affect you, I am here to assist you in navigating these changes smoothly. Jacklyn O’Connor Friedland 650-766-0791 jacklyn.friedland@compass.com jacklynfriedland.com

Concerned About the NAR Settlement Changes? Let’s Clarify! 🏠 DM —MICHEL NICOLO With all the talk about buyers paying agent fees, it’s understandable to feel uncertain. Here’s a quick rundown of what you need to know (more detailed information coming soon!): 1. Buyers Paying Agent Fees? 📊While sellers will no longer be able to publicly offer to pay a cooperating buyer-broker on the MLS, they can still choose to cover the buyer's agent commission, and many are likely to continue doing so to attract qualified buyers. The difference is that now, you'll negotiate your agent’s fee before starting your home search. Commissions have always been negotiable and disclosed; the key change is greater upfront transparency and new language in forms and contracts. However, the overall process will likely remain much the same. 2. How Does Your Buyer-Broker Get Compensated? 💰You have several options: you can pay your broker directly at the agreed-upon rate, ask the seller to cover the broker’s fee through escrow, or, if the seller is unrepresented (like in For Sale By Owner deals), your broker can negotiate payment directly with the seller. 3. Hiring a Realtor® Is Not Mandatory 🚫It’s perfectly fine if you decide not to use a Realtor®—this isn’t a new requirement. You have the option to represent yourself or hire an attorney. However, having a Realtor® can provide valuable support, especially in more complex transactions. 🧠 4. Signing a Buyer-Broker Agreement 📝If you choose to work with a Realtor®, you’ll be required to sign a buyer-broker agreement. This document outlines the terms of your partnership and the scope of your representation. 5. Will Sellers Lower the Home Price? 💸Not necessarily. While negotiation is always possible, especially if there are no competing offers, sellers usually accept offers that align with their financial objectives.

The recent NAR settlement is arcane and complicated and, in my opinion, national media has had a hard time capturing some important subtleties. The New York Times has finally written an important article that captures what I believe to be the most important- Sellers have carried the burden of paying the commission for both their agent and a buyers agent for one simple reason- Many buyers, in particular, first time buyers, have a difficult time saving for down payment, escrowed taxes and insurance, engineer’s inspections, and attorneys fees. Adding a fee to pay for the services of their agent was traditionally paid by sellers to reduce the burden and grease the wheels of commerce. This, of course, doesn’t address all of the changes that need to need to be addressed, however, it would have been a good starting point…

🚨 Important Update: NAR Settlement and Upcoming Changes 🚨 Hi everyone, I wanted to share some important news about the recent settlement involving the National Association of Realtors (NAR). This settlement is going to bring some significant changes to the real estate industry, starting next month. One of the major changes is that buyers will now be responsible for paying their buyer's agent. This is a shift from the previous practice where the seller typically covered this cost. Here’s what you need to know: 1. Buyer Responsibility: Buyers will need to budget for their agent's commission when purchasing a property. 2. Transparency: This change aims to increase transparency in real estate transactions and ensure that buyers are fully aware of the costs involved. 3. Negotiation: Buyers and agents will need to discuss and agree on commission fees upfront. These changes will impact how we conduct transactions, negotiate deals, and interact with clients. As we navigate through this new landscape, I’ll be here to guide you and provide the latest updates. Stay tuned for more details and feel free to reach out if you have any questions!

Recently, I realized not everyone knows how the new NAR settlement policy might impact them, especially when it comes to commissions. So, here’s something you should know commissions have always been negotiable now, but now the seller can forfeit paying the buyer's agent’s commission. Here’s why these matters: Before, the buyer commission was paid at the end of the transaction from the closing of escrow. This will allow buyers to get the proper representation when buying without worrying about fees. But now, with this policy, the seller can forfeit to pay the commission of the buyer’s agent which could be detrimental to the seller in order to obtain the best terms. The reason is that by putting the financial burden of representation on the buyer’s shoulders the seller will scare away many potential buyers which will significantly decrease the number of offers received and ultimately have less leverage in negotiations. There is more than one way to negotiate for your house in order to obtain top dollar and best terms but cutting yourself from a large majority of potential buyers will definitely hurt your chances of doing so. The key as a seller is to have that conversation upfront with your agent, figure out what your options are and what makes most sense. But don’t forget the key to selling your home for the best price is by having as many people interested in it as possible.

The proposed NAR settlement introduces significant change to real estate transactions. In my latest blog post, I analyze the implications for both buyers and sellers, offering guidance to navigate these changes effectively. #RealEstate #NARSettlement

Important Updates: Recent NAR Settlement Changes and Their Impact This past weekend, significant changes resulting from the recent NAR settlement have taken effect, introducing new practices in real estate transactions. One of the most notable changes involves the way commissions are listed. Sellers will now list the commissions for both the seller’s and buyer’s agents separately. However, the amount offered to buyer’s agents will no longer be displayed on the MLS, though it is typically still offered and paid. Additionally, agents are now required to have a Buyer Representation Agreement signed with a buyer before showing any homes. These changes aim to enhance transparency and may introduce new costs for buyers, but they also ensure clearer and more defined representation in real estate transactions. In Illinois, the Buyer Representation Agreement legally binds your Realtor to represent your interests rather than those of the seller. In our area, we've been utilizing buyer agreements for a considerable time, so this change represents a continuation of existing practices. The Buyer Representation Agreement includes essential terms such as the duration of the agreement, compensation details, and the scope of the agent’s representation: *Length of Agreement: Typically ranges from 6 months to a year, depending on the arrangement. *Compensation: Varies based on the terms agreed upon between you and your agent. *Representation: Your agent is legally obligated to act in your best interests and maintain confidentiality of your information, adhering to fiduciary duties. If you're ready to begin your home search or have questions about how these updates may affect you, I am here to assist you in navigating these changes smoothly. Kris Berger 630-975-0088 kris.berger@compass.com krisbergergroup.com

“conspiracy” to inflate realtors’ commissions : settlement to slash real estate agents’ commissions by up to 30% over time and reduce the total number of real estate agents considerably : National Association of Realtors inflated commissions by forcing sellers’ agents to make an upfront payment offer to buyers’ agents : $1.8 billion ‘conspiracy’ verdict that rocked the real-estate industry has turned into a groundbreaking $418 million settlement—settlement NAR require MLS participants working with buyers to enter into written contracts : been standard practice for real estate sellers to set buyers’ agents fees—sellers typically give their own agent a commission of about 6% if the buyer of the property has an agent, the two agents split the commission : fact that the old “cooperative compensation” model for real estate agents still remains a choice for consumers, although it’s no longer mandatory 

Check out the lastest NAR settlement update that will change the landscape of how we do business nationwide! #realestate #update #NAR #bigchanges

Wow talk about empirically based? Should Lawyers and other professions be set this way? Asked how CFA arrived at that 2 percent figure, Brobeck told Inman, “The 2 percent or less is my best judgment as a realistic goal most homesellers and buyers could aspire to and attain. Already in some markets, most buyer agents are charging 2 percent (but listing agents are unfairly charging more).” #capitalism #pricefixing #realestate #legalfees #payforperformance