Brooklee Han on NAR’s clarification of buyer broker agreements
May 8, 2024
auto_awesome
Reporter Brooklee Han discusses real estate lawsuit settlements, NAR's new buyer broker agreements, and challenges in housing markets. Topics include settlement details, DOJ involvement, evolving buyer agreements, real estate dynamics in North Carolina and Cincinnati.
Final approval hearings on real estate settlement agreements are crucial, DOJ may influence outcomes.
NAR's new buyer broker agreements mandate concrete compensation definitions, signed agreements before property tours.
Deep dives
Overview of Real Estate Lawsuit Settlements
Many major players in the real estate industry have reached settlement agreements following the Sitzer Burnett jury verdict. Companies like remax, Keller Williams, National Association of Realtors, and others have finalized agreements. However, there are still notable players like EXP, United Real Estate, and Howard Hanna awaiting settlement. The upcoming final approval hearings on these agreements will be crucial, with expectations of final approval, but the DOJ may still influence outcomes.
Changes to Buyer Broker Agreements and NAR Timeline
NAR's new buyer broker agreements will be implemented on August 17th, mandating changes like no cooperative compensation offers on the MLS. Buyer broker agreements must be signed before touring a property, ranging from casual week-long deals to formal long-term contracts. NAR clarified necessary agreement details, requiring agents to define compensation concretely and emphasizing the importance of signed agreements before property tours.
Implications and Industry Reactions
Brokers are adapting to the changing landscape with proposed alterations like flat fee structures and buyer consultations becoming the norm. Despite initial industry pessimism post-lawsuits, there is a shift towards optimism due to increased transparency and potential reduction of less experienced agents. The ongoing industry challenges, like affordability issues and inventory scarcity in markets like North Carolina, further highlight the importance of professional real estate representation.
On today’s episode, Editor in Chief Sarah Wheeler talks with Reporter Brooklee Han about the real estate lawsuit settlements, the new buyer broker agreements rolled out by NAR and how brokers and agents are adapting.
The HousingWire Daily podcast examines the most compelling articles reported across HW Media. Each morning, we provide our listeners with a deeper look into the stories coming across our newsrooms that are helping Move Markets Forward. Hosted and produced by the HW Media team.