Real Estate and NAR in the News

You may have seen news articles related to the recent National Association of Realtors proposed settlement related to lawsuits in other states, referred to as the “Sitzer-Burnett” case, regarding agent compensation. We are writing to share some preliminary information regarding the settlement, and how it impacts the real estate industry and you, the consumer.

How does this impact buyers and sellers?

Real estate agents will be required to provide more comprehensive information upfront about their compensation. This change is designed to empower consumers with a clearer understanding of the costs associated with buying or selling a home.

Sellers and their listing agents may continue to offer buyer agent compensation, or buyers may compensate their agent directly. The proposed changes state that offers of buyer agent compensation must now be communicated outside of the MLS.

Nationally, buyers will also now be required to enter into a written agreement with an agent. This is not new to Idaho or the Lysi Bishop Real Estate team. It has always been our standard to have written agreements for both our buying and selling clients. The Idaho Realtors agreements were designed to keep our clients informed of the services they’ll receive and the costs associated with those services.

Depending on agreed-upon terms, buyers may be responsible for compensating their agent during the home purchase process.

When will the proposed changes take effect?

It’s anticipated the proposed changes will take effect in the mid-July timeframe.

To read the original release from the NAR, click here.