A Crash Course On the Pending NAR Lawsuit
The proposed $418 million NAR settlement has been dominating real estate news and you’re probably wondering if the housing market is about to change and how the settlement will affect you.
Spoiler alert: for the most part, we’re all going to have to wait and see. First, to see if the settlement is accepted by the court (it’s still pending approval). If it is accepted, listing agents will no longer be allowed to advertise buyer agent commission on their listings, and nobody knows exactly how the market will react.
Sellers can still pay some or all of the buyer agent commission, but won’t be allowed to communicate it via the listing. Seller agents will look for other ways to convey offers of buyer agent commission, and it’s possible that buyer agent commission will enter into offer negotiations more frequently than before. Some sellers may decide not to pay the buyer agent commission, forcing interested buyers to pay their own agent out of pocket or forgo representation if they can’t afford it.
The settlement also requires buyers to sign a Buyer Service Agreement with their agent. This agreement outlines the duties the agent and buyer owe to each other and how the buyer agent will be paid. Buyer Service Agreements won’t be required by law until the NAR settlement is approved, but we have already started using them in anticipation of this change.
Our focus remains on helping our clients - both buyers and sellers - understand and navigate these changes. As we have done for over 2 decades, we will continue to walk you through the ins and outs of your sale or purchase. We are local experts and understand the complexities of Portland’s dynamic real estate market. Whether you’re a seller trying to get top dollar for your house or a buyer competing to get your offer accepted, having an experienced agent who knows not just Portland’s neighborhoods, but its blocks and micro-markets, gives you the upper hand. We have helped thousands of buyers and sellers and we will continue to empower you to make informed decisions and support you as guides and fierce advocates along the way. Read on to learn more about the settlement and possible market changes, and reach out if you still have questions!
