Lisa Mailhot | June 7, 2024
Buyers
Recent developments from the National Association of Realtors (NAR) suggest a pivotal shift in real estate practices. With a new proposed settlement potentially ending the practice of steering, the landscape of real estate transactions is set for a significant transformation. This blog delves into the details of the settlement, its implications for real estate professionals, and what it means for the market as a whole.
The NAR’s proposed settlement addresses the longstanding issue of steering—where buyer agents influence client choices based on commission rates offered by listing agents. This practice has been a point of contention, leading to several antitrust lawsuits. The settlement not only seeks to make compensation offers from listing brokers to buyer brokers "irrelevant" but also mandates that these offers should not be made through multiple listing services (MLS).
Michael Ketchmark, the lead plaintiffs’ counsel in a major lawsuit resolved by this settlement, emphasized the legal gravity of steering and the commitment to enforce the new rules vigorously. With the Department of Justice (DOJ) keeping a close watch, the real estate industry is under scrutiny to adhere strictly to these new guidelines, which are pending final approval.
In response to the settlement, NAR has updated its FAQ section to clarify these changes. From August 17, 2024, buyer brokers must enter into written agreements with buyers, stipulating the compensation they will receive, which cannot exceed the agreed amount. This move aims to discourage brokers from steering clients towards properties offering higher commissions, thereby fostering a fairer, more transparent marketplace.
Despite the settlement, NAR continues to support the idea of cooperative compensation, where listing brokers can still advertise compensation offers to buyer brokers through various non-MLS channels. This ongoing support highlights the complexities of transitioning to the new system and the balance NAR seeks to maintain within the industry.
As the real estate landscape evolves, understanding these changes becomes crucial for anyone involved in buying or selling property. If you're considering a move and want expert guidance tailored to these new realities, let's connect.
July 2025 housing starts data shows single-family construction climbing in the South while slowing in other parts of the country. For Orange County buyers and sellers,… Read more
Apartment-building permits slowed across the U.S. this past year, signaling tighter future rental supply even as demand firms back up. Here’s what the national trend—a… Read more
Mortgage rates have dipped to their lowest point since April, creating new opportunities for buyers and shifting the negotiating landscape for sellers. This drop could… Read more
Renting a home comes with more than just monthly rent. Hidden costs like utilities, insurance, and maintenance can vary significantly between houses and apartments. Le… Read more
Mortgage rates have fallen to their lowest point in nearly a year, giving homebuyers more room in their budgets and creating fresh opportunities for sellers. Discover … Read more
Discover the latest housing market trends, including significant home price drops in major U.S. metros like West Palm Beach and Austin. Learn what these changes mean f… Read more
Home values are now falling annually in four major U.S. cities, signaling a shift in the national housing market. Learn which metros are affected, why this matters, an… Read more
Despite economic uncertainty, the luxury real estate market continues to thrive in 2025. High-end buyers are capitalizing on cash transactions, turnkey properties, and… Read more
Southern California’s housing market is cooling in mid-2025, with rising inventory and more price cuts across Newport Beach and Orange County. Buyers are gaining contr… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most