Home Seller’s Guide to
CO-OPERATIVE COMPENSATION
And the National Association of REALTORS® 2024 Settlement
The sale of your home is a big decision, emotionally and financially. In addition to thinking about your real estate goals, you may be hearing news stories about big changes in the real estate industry.
In Harry Norman REALTORS®’ dedication to help you navigate the market with expertise and excellence, we would like to talk about what this news means to you.
HARRYNORMAN.COM/SELLING
OVERVIEW
In March, the National Association of REALTORS® (NAR) announced a proposed settlement that includes residential real estate business practices. This includes three things that sellers should understand:
1
As always, sellers are not required to offer co-op compensation to a buyer’s agent.
2
The MLS will no longer have a designated field to offer compensation to buyer representatives.
3 Before doing home showings, buyers and agents must have a signed agreement that includes compensation terms.
BUYER AGENT COMPENSATION & YOUR HOME MARKETING PLAN
Currently, when listing their homes, many sellers in our market pay compensation to their listing broker which can include buyer’s agent compensation. This is known as “co-operative compensation”. The amount of buyer agent compensation you offer, if any, is your decision.
This is one of many elements of the overall marketing strategy that you and your agent will discuss as you plan the sale of your home, such as the pricing, timing of when the listing is active, staging, photography, broker promotion, digital advertising and open house schedules. Your Harry Norman, REALTORS® agent will offer insight and expertise to help you achieve your goals.
ANSWERING YOUR QUESTIONS
WHY WOULD A SELLER WANT TO OFFER COMPENSATION TO THE BUYER’S AGENT?
Offering compensation to the buyer’s agent means that the home will appeal to the broadest possible group of buyers, giving you the greatest opportunity to maximize your return.
Some buyers only consider properties with buyer compensation offered in order to manage their closing costs. Under most circumstances, buyer’s agent compensation cannot be financed, so buyers would need to have those funds at closing which may limit them from considering your home as an option.
ARE SELLERS STILL ALLOWED TO OFFER COMPENSATION TO THE BUYER’S
AGENT OR OTHER BUYER
CONCESSIONS?
Yes, sellers can still offer co-operative compensation to the buyer’s agent. Sellers can also offer financial concessions to buyers that can be used for a variety of expenses, which may include buyer agent compensation.
HOW WILL THE LISTING AGENT ADVERTISE BUYER COMPENSATION IF A SELLER OFFERS IT?
Harry Norman agents will continue to publish co-op compensation offers in the MLS so that this information is available to the maximum number of people until August 17, 2024.
When the settlement changes go into effect this summer, the MLS will no longer have a dedicated place for buyer’s agent co-op compensation, but notes may be included if the seller is willing to offer financial concessions to a buyer.
Harry Norman, REALTORS® is working on solutions for sharing buyer’s agent compensation information with other brokers, such as publishing these on our website and in property marketing materials.
IF SELLERS DO NOT OFFER BUYER AGENT COMPENSATION, CAN THE BUYERS ASK FOR THIS LATER?
Yes. When making a purchase offer, a potential buyer may include the terms of the offer like the purchase price, closing time frame, and any contingencies. They may also request buyer agent compensation, financial concessions or credits from the seller.
Your Harry Norman agent will follow your instructions to present offers to you with all relevant information. You will be able to compare all offers and make the decision that is best for you.
CAN’T THE LISTING AGENT REPRESENT THE BUYER, TOO?
Many listing agents choose not to represent a buyer in the same transaction so that they can be fully committed to the interests of their sellers.
Your agent will talk to you about dual agency and what this means for your representation. If a buyer requests representation, and your agent is considering this, you will have the choice about how to proceed.
IF MY HOME IS ALREADY ON THE MARKET OR UNDER CONTRACT DOES ANYTHING CHANGE?
We will continue to market your home to attract the largest buyer pool and achieve your goals. Our Listing Agreement remains in place so that we can sell your home. Your agent and the professional staff of Harry Norman will provide the same outstanding service to get you to the closing table.
ENGRAINED IN EXPERTISE
At Harry Norman, REALTORS, we understand that the real estate landscape is dynamic, with constant shifts and evolving market conditions. However, our commitment to excellence remains steadfast. Our experienced agents navigate these changes with poise, providing clients with unwavering confidence throughout their real estate journey.
With our 99% satisfaction rating, you are partnering with the very best experts to guide you through the home selling process. Elevate your experience with Harry Norman, REALTORS®
⋆ ⋆ ⋆ ⋆ ⋆
“I am a developer and builder so over 20 years I have dealt with a lot of real estate agents. She is far and away the best agent I have ever dealt with. She is responsive, professional, and relentless in her pursuit of servicing my needs. She advises me on things I don’t even see coming with my experience level. She is a true real estate professional and it’s my privilege to have her represent me. ”
⋆ ⋆ ⋆ ⋆ ⋆
“My HNR agent is incredible! He is friendly, accessible, and patient. I told him from the start how important it was for me to have an agent who will take the time to explain things to me at each step of the process and he did just that! If the process seems overwhelming to you, you need him as your agent! He will make sure you have a good experience and understand what is happening at every step along the way.”
⋆ ⋆ ⋆ ⋆ ⋆
“From first chat to closing, she led me to feel empowered in navigating buying a home. She created solid ground and self-confidence through her knowledge, support, and advice throughout the process of purchasing my home. If I move, I will look forward to working with her again and in the meantime look forward to recommending her to everyone I know, because I know she’ll help others to feel empowered and make empowered decisions. You have an absolute gem of a person and agent in her.”
© 2024 Harry Norman, REALTORS®. Testimonials provided through Testimonial Tree. This information is subject to change as more details are provided about the NAR settlement and how it is to be implemented. Equal Housing Opportunity.
REV060524