Navigating the Future of Real Estate Transactions Under New NAR Steering Policies
Lisa Mailhot | June 7, 2024
Buyers
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.
Ohana Festival returns to Doheny State Beach in Dana Point, September 25 to 27, with Pearl Jam, Maná and more. Your Orange County event guide.
Sail into glowing Pacific waters this October with the Ocean Institute's Bioluminescence Night Cruise in Dana Point, Orange County's after dark ocean adventure.
A new bipartisan bill may let first-time buyers pull up to $35,000 from a 529 plan tax free for a down payment. Here's what it means for Orange County.
A bipartisan bill could double the capital gains tax exclusion on home sales, freeing up Orange County inventory and rewarding long-term homeowners.
The 2026 summer housing market has slowed nationwide, giving buyers more time and leverage. Here's what it means for Orange County movers.
Fannie Mae and Freddie Mac's new condo underwriting rules could slow approvals and raise costs. Here's what Orange County buyers and sellers need to know.
A new federal housing law cuts red tape and boosts construction. Here is what it means for Orange County buyers, sellers, and investors.
Homebuyer affordability dropped for a fifth month in a row. Here's what it means for Orange County buyers and sellers and how to plan your next move.
New Redfin data reveals weather beats affordability as the top reason Americans relocate, and Orange County has exactly what movers are chasing.
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
Get In Touch With Lisa
Broker Associate
949-877-7087
124 Tustin Ave Suite 200, Newport Beach, CA 92663