Will the NAR Settlement Really Change the Market? Here’s What I Think!
December 2, 2024
Will the NAR Settlement Really Shake Things Up? Here’s My Take!
There’s a lot of buzz going around about the National Association of Realtors (NAR) settlement and how it’s going to change the way commissions work in the real estate market. Some are saying the sky is falling, but let me give it to you straight: I don’t think this settlement will rock the market as much as people are making it out to. Here’s why:
1. Markets with Strong Inventory Won’t See Much Change
- In places like Southwest Florida (SWFL), where there’s solid inventory, covering agent commissions is just good business. It keeps the market moving and ensures that homes remain accessible to more buyers. Even though the settlement may impact how commissions are paid, it’s still a smart move for sellers to offer to cover agent commissions, keeping transactions smooth and efficient.
2. Tight Inventory Areas May See Some Adjustments
- Now, in places where inventory is tight, like some other parts of the country, sellers may not necessarily HAVE to offer to pay commissions. But let’s be honest—this doesn’t drastically change the game. What’s really happening is that instead of paying the full 6% agent commission, sellers will split that cost. The standard agent commission, which has typically been 6%, could be divided—3% paid by the seller and 3% paid by the buyer.
3. Buyers and Sellers Are Splitting the Cost
- So, what does that mean for you as a buyer or seller? As a buyer, you’ll pay 3% of the home’s purchase price in commission, and then when it comes time to sell, you’ll pay another 3% on the appreciated price.
- In other words, instead of paying a single 6% commission on the fully appreciated price of the home, you’re splitting the cost, which makes the expense feel a little lighter.
4. Not as Big a Deal as Some Make It Out To Be
- In the grand scheme of things, I don’t think this is going to drastically affect most buyers or sellers in SWFL. The market is still going to thrive, and the focus will shift to other factors like inventory and home prices. Sellers and buyers will adjust to the new structure, and the market will keep moving forward.
Want More Information About Your Market?
- Want to know what this means for your specific market here in Southwest Florida? Drop the word "MARKET" below, and I’ll break it down for you! We’ll get into how these changes might impact your buying or selling strategy, so you’re always in the know.
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