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Understanding the

NAR Lawsuit Settlement

What You Need to Know

In March 2024, in response to a pending lawsuit judgment against them, the National Association of Realtors® released a set of proposed policy and practice changes that will reframe the relationship between real estate professionals and buyers. To be clear, the industry’s fiduciary commitment to the best interests of clients hasn’t changed, but the way agents and buyer clients formalize professional relationships will.

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Changes to the Homebuying Experience

As a homebuyer, this proposed settlement means there will be some changes to your real estate experience:

1. Required Buyer Agreements

Prior to this settlement proposal, it was acceptable (though not widely practiced) for buyer’s agents to forge relatively informal, unwritten agreements with their clients regarding service. Following these proposed changes, buyers must sign a service agreement with a real estate professional in order to be shown homes. 

2. Buyer’s Agent Compensation

Prior to the proposed changes in the settlement, buyer’s agents were compensated via a cooperation agreement with the seller and seller’s agent facilitated by the multiple listing service. While this sort of cooperation is still allowed, the MLS is no longer allowed to coordinate it. Buyer’s agents will now be responsible for negotiating their own compensation with clients.

FAQ

As a homebuyer, these changes will require new, important conversations between you and your real estate professional. A buyer service agreement will formalize your agent’s fiduciary responsibility to you, further protecting your interests. It will allow the opportunity for real, transparent communication with your agent around compensation, offering you a clear understanding of the cost of services and how those services benefit you. 

These conversations will ultimately set buyers up for greater success in their transactions. More buyers will start the home search process with a clear understanding of their strategy, how their agent will support them, and what it will take to get to the closing table. 

Two major changes: First, compensation offers to buyer’s agents will no longer be displayed on the MLS, and the MLS won’t be allowed to facilitate commission cooperation between the buy and sell sides of transactions. Second, all buyers will be required to sign a buyer agreement with their agent outlining service terms, including commission requirements.

Yes. Luxury Presence has created a strategy guide for agents seeking advice on negotiating buy-side compensation. Get your copy of The Future of Buy-Side Compensation here

The best agents have shifted their thinking from the top line to the bottom line. They're obsessed with the client experience. They're taking action very quickly to level up the technology in their businesses because they understand it's the only way to deliver strong profitability and a world-class client experience.

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How I Work With Buyers

As my client, you can expect nothing but the highest level of service and counsel. I take my fiduciary commitment to you extremely seriously and believe that the best way to advocate for your best interests is through preparation. For each property my clients consider, I create a complete set of market research, potential pricing and offer strategies, contract negotiation tactics, and more.

Before the NAR lawsuit settlement proposal, some buyer’s agents were able to get away with doing the bare minimum. Thanks to assumed cooperation with the seller, they might get paid for simply showing up, unlocking doors, and pushing papers. 

While that was never my approach, it is now no longer the world we live in. As my client, you can rest assured that I will provide you with expert-level service and advice throughout our professional relationship.

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Testimonials

Read what our clients have to say about working with us.
"Chad is the best realtor who truly cares about his clients! I would recommend him to any first time home buyer!"
"Chad is the best realtor who truly cares about his clients! I would recommend him to any first time home buyer!"
Lindsay J.
"Chad is a very professional realtor and asked some great questions about what my business was looking for (a new commercial property). He helped send options every time something was about to hit the market."
"Chad is a very professional realtor and asked some great questions about what my business was looking for (a new commercial property). He helped send options every time something was about to hit the market."
David M.
"Allison Grant was my agent. I'm a first-time home buyer who knew less than nothing about buying a home. Allison patiently guided me through the process, and I learned a lot from her and ended up buying a really cool condo. Highly recommended!"
"Allison Grant was my agent. I'm a first-time home buyer who knew less than nothing about buying a home. Allison patiently guided me through the process, and I learned a lot from her and ended up buying a really cool condo. Highly recommended!"
Chuck F.
"Tim Rohan is knowledgeable and thorough when pricing your property. He works hard to field offers and implicitly trusts his judgment. Alyce Walker knows her real estate, too. Not only does she work her contacts to sell your property, but she also calms your fears, and helps you make sure nothing with your move falls through “the cracks”. I trust her judgment/opinions almost as much as I do my own! Tammie Maxey supports Tim and Alyce and even helps the client with filings and such. You can not go wrong with this agency! Either buying OR selling. Call them. You will see how rapidly they respond, and you will see what I mean!"
"Tim Rohan is knowledgeable and thorough when pricing your property. He works hard to field offers and implicitly trusts his judgment. Alyce Walker knows her real estate, too. Not only does she work her contacts to sell your property, but she also calms your fears, and helps you make sure nothing with your move falls through “the cracks”. I trust her judgment/opinions almost as much as I do my own! Tammie Maxey supports Tim and Alyce and even helps the client with filings and such. You can not go wrong with this agency! Either buying OR selling. Call them. You will see how rapidly they respond, and you will see what I mean!"
Sara H.
"John was awesome to work with. He worked day and night, getting his hands dirty for weeks, to get my home ready to sell. He went above and beyond what was expected. I highly recommend him if you are thinking about selling your home. Or interested in buying."
"John was awesome to work with. He worked day and night, getting his hands dirty for weeks, to get my home ready to sell. He went above and beyond what was expected. I highly recommend him if you are thinking about selling your home. Or interested in buying."
Pamela M.
"Chad is great! He was so patient and helpful when he helped sell our first home, and is currently getting us into our perfect new construction home! Highly recommend him."
"Chad is great! He was so patient and helpful when he helped sell our first home, and is currently getting us into our perfect new construction home! Highly recommend him."
Hannah H.
"Chad is an amazing Realtor! As a Loan Officer, I know good Realtors, and Chad is definitely one of them. He knows the market, has years of business experience, and takes great care of his buyers. You're in great hands with Chad!"
"Chad is an amazing Realtor! As a Loan Officer, I know good Realtors, and Chad is definitely one of them. He knows the market, has years of business experience, and takes great care of his buyers. You're in great hands with Chad!"
Buyer
"If you are looking for a realtor in Charlotte, look no further than Danielle Edwards with RE/MAX Executive - she is the best! We would not be in our home if it weren't for her guidance and expertise. First, she sat down with us to explain the whole process and what to be prepared for as first-time home buyers. Then she was with us every step of the way, super responsive, honest, positive, helpful, and a true local expert. When we finally found "the house," that's when Danielle really shone! She guided us through a multiple offer situation that I know only went our way because of her advice. Her attention to detail and sense of urgency really made all the difference. She worked her tail off for us, and we couldn't be happier! Thank you, Danielle!"
"If you are looking for a realtor in Charlotte, look no further than Danielle Edwards with RE/MAX Executive - she is the best! We would not be in our home if it weren't for her guidance and expertise. First, she sat down with us to explain the whole process and what to be prepared for as first-time home buyers. Then she was with us every step of the way, super responsive, honest, positive, helpful, and a true local expert. When we finally found "the house," that's when Danielle really shone! She guided us through a multiple offer situation that I know only went our way because of her advice. Her attention to detail and sense of urgency really made all the difference. She worked her tail off for us, and we couldn't be happier! Thank you, Danielle!"
Katie N.
"Chad has a wealth of knowledge and patience in his field. He is patient, calm, and no calls or texts will go unanswered. Chad, thank you for a wonderful experience. You made this entire process easy. I will be referring to anyone and everyone that I know. Hey, if you're reading his reviews, please don't hesitate to call him because you won't be disappointed. Again, thank you for everything. "Don't hesitate to select Chad, because you won't regret it!"
"Chad has a wealth of knowledge and patience in his field. He is patient, calm, and no calls or texts will go unanswered. Chad, thank you for a wonderful experience. You made this entire process easy. I will be referring to anyone and everyone that I know. Hey, if you're reading his reviews, please don't hesitate to call him because you won't be disappointed. Again, thank you for everything. "Don't hesitate to select Chad, because you won't regret it!"
Buyer
"Eve was brilliant! She helped us find exactly what we were looking for and took her time and care when showing us properties and helping us through the process as first-time home buyers. Her knowledge of the market and attention to detail are outstanding. We couldn’t be happier with the service we received. Eve really went above and beyond through every step in the home-buying process."
"Eve was brilliant! She helped us find exactly what we were looking for and took her time and care when showing us properties and helping us through the process as first-time home buyers. Her knowledge of the market and attention to detail are outstanding. We couldn’t be happier with the service we received. Eve really went above and beyond through every step in the home-buying process."
Calvin L.