How does the NAR settlement affect home buyers?

Dated: March 19 2024

Views: 236

Do I have to pay a buyer agent commission?

The shift in how buyer agents are compensated driven by NAR's lawsuit settlement has generated rampant fear, misiniformation and frankly absurd postings which may leave you confused.

Buying a home is one of the most complex, personal business transactions we do in our lifetime. Its also one of the most misunderstood.

When I see articles like this recent LinkedIn editorial it brings home to me what a bad job our industry has done educating consumers about what is involved in the home selling and buying process.

Yes, we can blame HGTV and social media's oversimplification of a complex business. Yet it comes back home to us, the licensed professionals who live and breathe this business to paint a true picture of the real estate transaction.

Entertainment is just that - entertainment. I loved Law & Order but we all know a lawsuit isn't solved in 15 minutes.

To think a homebuyer can use AI to write a contract is as absurd as using AI instead of a lawyer. Yet we've allowed our industry to be seen like an HGTV script - look at 3 homes, pick one and done!

The massive amount of work, education and consultation necessary to avoid potential pitfalls in a real estate transaction isn't sexy and doesn't fit in a 30 minute segment. But that story must be told!

Indeed, changes are in the wind. Realtors will have to do what we should have been doing all along, interview for the job before showing homes to buyers. The solution is not AI or an app. Those are tools a smart professional uses strategically.

But you need an experienced, knowledgable and skilled professional - "organic" intelligence. 🤓

Why eXp Realty?

The forward thinking, flexible business model of eXp was what attracted me to make my final brokerage change 3 years ago.

Unlike traditional brokerages, it's a platform to support MY business, and its up to me to create the model and terms that work for my clients. 

Some recent info published by eXp Realty to help clarify confusion for buyers and sellers following the NAR settlement;

Why do I need a buyers agent?

Buyers need representation. In my 20 years as a realtor, I've seen complex litigation personally and learned from some of the best real estate attorneys in Hawaii and Pennsylvania. The cost of litigation is far more than a fee for representation.

I won't digress further, but statistics have proven time and again that FSBO sellers face a higher number of lawsuits, and net proceeds are dramatically less than comparable homes sold with a professional. The same is true for unrepresented buyers.

Don't want to work with a realtor? Then please interview an attorney. Then let's talk about what services are provided and at what cost.

Bottom line, buyer agents now have to earn the business opportunity based on skill and showing proven value, not just by opening doors. That's always been my business model.

Susanna Kunkel, Realtor
eXp Realty, LLC

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Susanna Kunkel

Susanna provides executive level service to all her clients based on her years in corporate CEO offices. Creative marketing, global networking and local expertise. Her unique mix of business savvy and....

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