Tag: realtor homes for sale

The National Association of Realtors doesn’t set commission rates

Some are saying the association is the one who made that 6% commission rate standard.

CHARLOTTE, NC — A new settlement may change commission rates for real estate agents moving forward.

For decades, the National Association of Realtors (NAR) has required brokers to provide an offer of compensation to buyers agents up front. That usually comes to about 6%, split between the sellers and buyers agents. Some are saying the association is responsible for making that 6% commission rate standard.

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A $418 million settlement is about to change the game when it comes to commissions for real estate agents. Sellers would no longer have to make a compensation proposal to prospective buyers and their agents.

Some are saying that the so-called standard 6% commission set by the NAR will go away — but has it always been 6%? The WCNC Charlotte Verify team looked into it.

THE QUESTION

Does the NAR set commission rates?

THE ANSWER

No, the NAR does not set these commission rates. They have always been negotiable.

THE SOURCES

WHAT WE FOUND

“The NAR does not set commissions, and they

How a real estate industry shake-up could affect Idaho home buyers and sellers – LocalNews8.com

IDAHO FALLS, Idaho (KIFI) – A big change could be coming to the national real estate industry potentially impacting the how homes are bought and sold.

Last year, the National Association of Realtors (NAR) reached a settlement after losing a lawsuit involving the commission structure through which buyers’ agents receive their pay.

If this new settlement is approved by a federal court, here’s how things could change for people looking to buy or sell a home in Idaho.

The NAR’s current system

Under the current system, buyer agents can search through a list of homes for sale through the NAR’s multiple listing service (MLS).

It’s an online database that shows them the seller’s information, the home price, and most controversially, how much the buyer’s agent’s commission is. According to Associate Broker Jessica Cardon of the Murdock Manwaring Company, this actually does have some benefits.

“We incentivize to say, ‘Hey, if you bring a buyer, I’m willing to share as the listing agent,'” Cardon said. “The listing agent is taking a portion of the commission that they’ve negotiated with the seller and giving it to the cooperating broker.”

Cardon tells us realtors use this method as a marketing tool towards potential

Home sellers can say goodbye to hefty 6% commissions under new real estate deal

As part of an agreement to settle a series of lawsuits over inflated real estate commissions, the National Association of Realtors said Friday that big changes are on the way.

The group says it will pay more than $418 million to settle the lawsuits. But much more significantly, industry experts say, the settlement will upend the real estate market and create more competition, which will lead to lower commissions.

The realtor group said it will eliminate a longstanding rule that mandated a non-negotiable commission be posted on the Multiple Listing Service (MLS), its real estate database, which handles more than 90% of home sales. Currently, to list a home with MLS, the non-negotiable commission is typically between 5 and 6 percent.

By removing that rule, real estate commissions can be negotiated, which could lead to lower costs for home sellers.

Asked for comment, the National Association of Realtors referred NJ Advance Media to its statement.

“This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals,” said Nykia Wright, the group’s interim CEO, in the statement.