Real Estate's Transformation Post-NAR Settlement

Lisa Mailhot  |  March 25, 2024


Real Estate's Transformation Post-NAR Settlement


The real estate industry stands on the brink of a transformation. The anticipated approval of a settlement with the National Association of Realtors (NAR) suggests a significant shift in how listing brokers make cooperative compensation offers to buyer brokers. Contrary to maintaining the status quo, this change is expected to unleash a wave of innovation, driving down commissions for consumers and altering the landscape for real estate professionals.

Misconceptions Clarified

A conversation with Robby Braun, a key figure from Cohen Milstein Sellers & Toll, sheds light on several misconceptions surrounding the settlement. Firstly, the settlement does not grant a blanket release for Realtors from past anti-competitive practices. It also places limitations on off-MLS offers of cooperative compensation, ensuring MLS data is not used to facilitate such offers. This stands as a measure against potential workarounds that could undermine the spirit of the agreement.

The Innovation Wave

The settlement is poised to stimulate a new wave of innovation within the industry. It opens doors for diverse compensation models, efficiency improvements, and a variety of service providers, including discount brokers and real estate attorneys. This environment encourages experimentation and competition, which are likely to lead to lower commissions and more options for consumers.

Reducing Steering and Enhancing Transparency

An important aspect of the settlement is its potential to reduce steering by promoting transparency. It requires detailed disclosures about compensation early in the broker-client relationship, thus diminishing the opacity that has historically benefitted certain practices at the expense of competition and consumer choice.

The Inevitable Market Shift

Despite potential resistance in the initial stages, the settlement is expected to catalyze a market shift towards more competitive pricing and innovative business models. Realtors who ignore these changes risk falling behind, as the settlement fundamentally alters the incentives within the industry.


As we stand on the cusp of these groundbreaking changes, it's clear that the real estate market is evolving. This evolution promises greater transparency, innovation, and, most importantly, enhanced value for consumers. For those looking to navigate this new landscape in Orange County or beyond, connecting with a knowledgeable partner can make all the difference. Let's connect and explore how these changes can benefit your real estate journey.

For more insights and updates on the evolving real estate market, stay tuned to our blog.



Reference: Brambila, A. V. (2024, March 25). Moehrl attorney: Market shift after NAR settlement 'will take time'. Inman.

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