Decoding the Changes: What the National Association of Realtors' Settlement Really Means

There is so much misinformation out there, starting with Streamline Media that I did these videos after my boxing training this morning to give you my perspective. I apologize in advance for the vertical format, but the original thought was for Instagram Reels and then I decided to share it with you here.

video transcript:

Hello, so you did hear that there was a settlement by the National Association of Realtors and there’s a lot of misinformation out therel

So obviously I wanted to clear the air a little bit and let you know what that means.

The first item is … starting mid july of 2024 the offer of compensation in the MLS will be removed. Removed.

Does that mean there will be no compensation? NO

Will it mean that compensation conversations will be moved off the MLS? Absolutely!

Is this a new thing? Could you previously negotiate compensation? YES!

You could!

You ALWAYS have been able to negotiate compensation.

2. Now, the second one is, that every REALTOR that is working with a buyer will need to sign a buyer’s agency agreement.

Is this disagreement new? Absolutely not, we’ve always had a buyer’s agency agreement.

Now here’s my take on it.

We are okay with signing exclusive listing agreements so we don’t work for free. Why are we not okay with signing buyers agency exclusive agreements to make sure we get paid?

Have we always had these agreements? absolutely

Have we been teaching agents how to use them? absolutely

Do we recommend that the consumer signs these to make sure they get great value and great service? Absolutely!

I actually think these changes are super, super positive.

So what are the major changes?

No compensation in the MLS

Most importantly, commissions have always been negotiable, on and off the MLS.

That is what you need to keep in mind, whether you are an agent, whether you’re the consumer, they have always been negotiable.

Now it’s more obvious to everyone that you can negotiate these.

Transcript summary

The transcript discusses the settlement by the National Association of Realtors, clarifying misconceptions about changes in the real estate industry. Key points include the removal of compensation offers in the MLS starting mid-July 2024, emphasizing that while these offers will no longer be listed on the MLS, compensation discussions can still occur off the MLS and have always been negotiable. Additionally, it highlights the requirement for realtors working with buyers to sign a buyer’s agency agreement, a practice that is not new but perhaps underutilized. The speaker views these changes positively, stressing that commissions have always been negotiable and that these adjustments make the negotiation process more transparent.

And here’s another one I recorded this week