NAR Members have always had to abide by the Code of Ethics which was established in 1913. The National Association of REALTORS (NAR) formed in 1908 at a time when there were no real estate licensing laws and real estate agents had no obligation to protect or promote the interests of their clients. This is the point, NAR and the COE fundamentally came about to PROTECT the consumer; not harm them. Non-NAR members (most commercial real estate agents for example) are not bad people or unscrupulous agents. That said, there is no recourse for non-NAR members who would otherwise violate the COE which to this day, still protects the consumer.

Real Estate Agent: A real estate agent is a licensed professional who represents buyers or sellers in real estate transactions. They work under the supervision of a real estate broker and are required to complete a certain amount of education and pass a licensing exam.

Broker: A broker is a step above a real estate agent. Brokers have completed more education and training than agents and have passed a broker's license exam. They can work independently, start their own brokerage, and hire real estate agents to work for them.

Realtor: A Realtor is a real estate agent or broker who is a member of the National Association of Realtors (NAR). Realtors adhere to a strict code of ethics and are committed to treating all parties in a transaction honestly.

The short answer is NO. All of the changes we’ve discussed are “proposed” so until the settlement is finalized, we are simply in a holding pattern. What you should expect right now is that the conversation about these proposed changes is happening between you and your agent. All of our team is working hard week after week to follow this story and other related news so that we can continue to provide you with the most meaningful and accurate information about the real estate industry. As your trusted real estate partners, we are available anytime to discuss any other questions or concerns you may have.

I’m very happy that buyer’s agency agreements will be mandatory. Most of our team has been using them all along, and it sets the tone for what each party expects from the other. We can do a deep dive into our client’s needs and develop a success plan that matches their goals.

I dislike the negative media coverage. Commissions have always been negotiable, and transparency has always been at the forefront for our team. Just to provide a little more data about why the negative media attention is so frustrating:

According to Leanprop, there are roughly 2 million licensed real estate agents in the US, with about 1.35 million being active. On average, an active real estate agent supports seven home sales transactions per year and generates about $51,200 in annual commissions. After expenses and before taxes, they take home about $37,000.

We are professional full-time agents who work endless hours dedicated to our clients, and it’s no easy job. The time away from our own families on weekends and evenings is just one sacrifice we make to ensure our clients feel comfortable, supported, and valued. We eat, sleep, and breathe real estate. So, yes, it’s very hard when the media makes us out to be the bad guys. We solve problems, help people, and work for free until a deal is made. We are working with people through one of the most stressful times in their lives. It’s a very intense job. My team is comprised of some of the most dedicated and hardworking individuals I've ever had the privilege of working with, and it's no surprise that our most successful agents exemplify this ethos. #l❤️myrealtor

In my opinion, the way things are now is actually the best for both buyers and sellers. By offering and marketing buyer’s side compensation, sellers can ensure that their property is shown to a wider pool of potential buyers, increasing the likelihood of a successful sale at an optimal price. For buyers, this arrangement gives them a fair shot at winning the home without worrying about how they will pay for this service or how to compete with another buyer who can afford it. In essence, this system creates a level playing field for all parties involved.

As a realtor, I'm passionate about enriching my network with insights into the local real estate market. Whether you choose to work with us or not, our SEG insights are completely complementary. Our mission is to help you win in Real Estate and that starts with having the knowledge and expertise to make one of the biggest purchase decisions in your life. My team and I gather data and feedback to provide valuable information and guidance. We share success stories, tips for enhancing home value, and advice on avoiding regrettable modifications. We also offer insights on refinancing and equity, thanks to our collaboration with various lenders.

For our clients, our main value add is problem-solving, which is a key aspect of our role, addressing issues from minor home inspections to significant concerns like radon levels. Above all, each SEG agent takes pride in being the community expert, helping buyers and sellers make informed decisions about their homes and real estate investments.

The U.S. Department of Justice was concerned that Real Estate agents were making consumers feel like they couldn't negotiate commissions, especially on the buyer side. This stems from the average 3% commission that has long been offered out to buyer agents via the Multiple Listing Service. This settlement will create better transparency into the buyer agents value and commission.

Technically, yes, if you choose NOT to offer a buyer’s commission, you will pay less in commission. However, I just want to point out that sellers have always had the opportunity to negotiate this. They could have offered as little as $1. However in my opinion, by offering compensation to the buyer's agent, sellers can ensure that their property is shown to a wider pool of potential buyers, increasing the likelihood of a successful sale at an optimal price.

Not necessarily - No. Understand that as a buyer you have indirectly been paying your agents’ commission the entire time. Think about it, the seller has a sale price in mind and it’s usually based on a few factors such as market value and what they'll net. Well, what factors into their net? Their costs, one of which is the commission. Therefore, when a buyer purchased a home, all commissions were included in the price the buyer paid for the home.

Moving forward, if the Seller does not offer a commission, credit, or concession then yes, as a Buyer you might wind up having to pay the commission directly to your agent. One important final note, most experienced Buyer’s agents during a transaction, navigate contract specifics, terms and conditions, and home inspection negotiations to earn credits or reduce costs for the Buyer easily equal to the commission amount that might be due.

This will depend on the specifics of the agreement you make with your Buyer’s agent.  In most cases, no payment should be required upfront.  “Tradition” is that agents are paid when the transaction is closed.  There is a clear incentive for the agent to perform in securing the property and fully assist throughout the course of the transaction with “payment” upon completion.  This is how our team has always worked.  Moving forward, agents will have the flexibility to discuss a variety of options and timing for payments.  I would be somewhat cautious and clear about agreements outside of the traditional process.