What is going on with the real estate industry?  I keep hearing about changes going on with Realtor commissions? 

By: Derek Gutting, The Gutting Group / Keller Williams Realty, Carmel, Indiana

Based on the questions and conversations I get frequently, I am assuming you are as confused as most people are about what is going on with the real estate industry and the NAR Settlement that is waiting final approval.   The media’s erroneous messaging has not helped anything, that's for sure.  I will summarize in the most simplest of terms.  

 

The NAR Settlement requires the following TWO practice changes that will be implemented in Realtor MLS’s.    These practices must take place August 17, 2024.

 
1)  Buyer Agency Representation Agreement.   All buyers will be required to sign a Buyer Agency Agreement with their agent before “touring/viewing” a home.   Exception:  this form will not need to be signed when touring Open Houses.   This document shows what the buyer is obligated to pay the buyer’s agent for their services.   This buyer agency commission fee remains fully negotiable between broker and buyer and can be negotiated in the purchase agreement for the seller to pay this fee as a “seller paid buyer concession”.   If the seller is unwilling to pay these fees, then said fees would be the responsibility of the buyer.

2)    The Buyer Agent Commission (commonly referred to as the BAC) can no longer be advertised on the BLC (MLS).  Sellers can still offer cooperative compensation to the agent and it can be marketed any place other than the BLC (MLS), such as newsletters, text messages, personal websites, social media, etc.   The BAC can no longer be advertised on the BLC system.  This field will be removed from our local Indianapolis Board of Realtors BLC (MIBOR) as of July 1, 2024.   

 

That is it!  What you hear in the news can be very confusing, I get it.   While the proposed Settlement has been preliminarily approved by the judge, the final approval hearing is set for November 2024.  That said, NAR is moving forward with these changes as well as our local Indianapolis Board of Realtors (MIBOR).  Again, taking affect on August 17, 2024.

 

If you have any additional questions, please do not hesitate to reach out to us.