What Is the NAR Settlement All About?

By Dava Davin
Posted Wednesday, Aug 7, 2024

The recent nationwide settlement is a big step towards transparency in real estate transactions, ensuring that both buyers and sellers are fully aware of how their realtors are compensated. Traditionally, sellers’ listing agents have shared their commission with buyers’ agents as an incentive to attract more buyers to view their homes. This settlement doesn’t change the benefits of these buyer incentives; it simply adds a layer of transparency. Now, both buyers and sellers will be required to sign an agreement for services that clearly outlines how their agents are compensated, and this will happen before they sell or tour a home.

At Portside, we’ve always prioritized clarity and fairness, which is why we’ve required signed buyer representation agreements since our founding in 2012. For us, this isn’t a new practice—it’s business as usual!

So, What’s Changing?

In a typical transaction, both buyers and sellers have their own realtors with specific service agreements. Traditionally (pre-settlement days), sellers' listing agents have shared their commission with a buyer agent as an incentive to attract more buyers to view their home. The settlement does not change the advantages or use of buyer incentives, it simply requires both buyers and sellers to sign an agreement for services detailing their compensation prior to selling or touring a home.

Additionally, by August 17, 2024, the buyer agency fee will be removed from all Multiple Listing Services (MLS) nationwide. In fact, it has already been removed in Maine and New Hampshire.

What Isn’t Changing?

One thing that remains the same is our commitment to you. Buying or selling a home is often the largest and most complex transaction of your life, and we’re here to guide you every step of the way.

And remember, commissions are not set by law—they are fully negotiable.

At Portside, we’re excited about these changes because they align perfectly with our longstanding values of transparency, fairness, and exceptional service. Here’s to a more informed and empowered real estate experience!