My phone has been ringing off the hook with those interested to hear my take on "How the recent NAR settlement will affect Realtors, Home Buyers and Home Sellers.

As a Realtor who has committed almost over 20 years to sincerely go above and beyond for both Home Buyers and Home Sellers; there are pros and cons to the NAR settlement. Let's start with the aspects benefiting both home buyers and home sellers. ( From my perspective )

The benefits start with a fact.  I have been sharing this fact for years on my blog post for years and that is,  "There is a difference in Realtors". That statement was echoed in a similar fashion by a real estate broker Michael DOWNER (Coldwell Banker) Florida, who was a quoted as saying in a recent interview.

"The general public doesn’t see value in the buyer agent right now.” 

I hope and believe the NAR settlement will now have, 'Home Buyers' more mindful of who they hire as their Realtor.

The new ruling will REQUIRE Realtors to have their Home buying clients - sign an exclusive agreement with them clearly stipulating/outlining - the commission or the amount of money the buyers agent is to receive, after providing assistance with finding and securing a home. The buyers understanding  is...or I imagine the buyer's hope is, "they are paying for expertise from a professional to find and secure, 'the best home, for the best price for the buyer. based on a comprehensive understanding of values, the intricacies of value differences. For example, if a home has a single step versus three steps in the living room, how the floor-plan affects value and to what degree? Plus 500 other items that affect value.  Including views , proximity of other homes, improvements, upgrades, degree of upgrades on and on..  and then professionally negotiating the price, against a potentially seasoned agent.

Once the contract is agreed upon,  then home buyers expects inspections on the HVAC system, the structure, foundation, roof, electrical, termite, easements, potential encroachments. The inspections items are almost endless and complex. If you have been told otherwise, you are the perfect person to be reading this article and should consider a new agent.

Then the home buyer should count on his agent for some measure of legal protection via their knowledge, because, every aspect of the purchase puts the home-buyer at risk of being in a future lawsuit.  So a myriad of legal issues must be carefully checked every step of the way i.e every addendum, email, text and all notes, must align with statute and disclosure.

If there is a loan involved the complexities multiply, from the friendly lender, who may scare a less qualified home buyer into thinking, ' they are the only one that can get the transaction done'... is that true or false?  To understanding rates, a float down, loan structuring, the dozens of creative purchase options that may benefit buyer, even before visiting the lender.. So I can go on and ON... My point is this ... Under the old system, for example,  Ken/Barbie would get their online certificate to become an agent, join the NAR to become a"Realtor" and join a brokerage... and then call their friends family and neighbors with glee, to start  selling houses and advise and consult on all the above mentioned items and about 100 MORE... with little OR NO experience. And asking to earn more per hour than 95% of Americans with a 4 year degree and 10 years on the job.

Wooosh, sorry long winded... So why do I think the NAR settlement is going to help Home buyers. I think/hope "Maple", who (wants to buy a home) and worked at the same grocery store, bagging groceries eight weeks before with Barbie/Ken, then sees the "Buyer Exclusive Representation" agreement ' that includes a fee of $12,000 fee to assist "Maple" in buying her first home, that 'Maple',  who has worked hard and saved every hard earned nickle to purchase a dream home for the last 5 years... 'Maple' is going to think "WAIT" .. and think very carefully about  "what is she paying Barbie for? " in other words - "What value is 'Maple' getting in hiring Barbie" ?  And "Maple" may ask herself, 
"Is Barbie "worth TWELVE THOUSAND DOLLARS !"...  just because 'Barbie' took a simple course about 'metes and bounds' and knows how many "chains are in a mile" yes folks,  that is part of the state course; but not what a 'differential slab crack means' or legal matters and the list goes on, to the items not covered.

So, I hope, one of the benefits of the NAR suit becomes, 'home buyers and sellers take a closer look at, WHAT their Realtor is actually doing??! , to EARN their fee. As I write this I have NO concern how closely my efforts are measured, There is no one who works harder, with more expertise, for their clients, than me... And I understand families,  will still hire their niece, nephew or friends to represent them.. BUT from now on; the CONTRIBUTION/GIFT they are giving them will be in black and white print. It will be as clear as handing them a gift certificate. 

Last point on the above, I use the most pronounced example of "experience and knowledge above" but the degrees of knowledge, experience and not mentioned above "integrity" (which is paramount in real estate) starts in the example above and continues up. I have seen agents take easy street from the 100,000 range all the way up to the 20 million range   

MORE TO COME ON THIS - I have not had time to finish, because I am helping clients.. But more insight to come. And a lot of it is NOT, NOT going to benefit buyers and sellers

What the NAR Suit will mean for HOME buyers and Sellers - Continued 

From a recent article in the, The Real Deal Real Estate News - journalist Sheridan Wall reports,

Redfin is ditching the National Association of Realtors.

The Seattle-based company is now requiring agents to pull their membership from NAR, according to an announcement by CEO Glenn Kelman

Following is the Realtor Code Of Ethics. Redfin has already chosen to opt ALL of their agents out of the NAR - Not just chosen but is REQUIRING all agents to,  NOT be aligned with NAR. To "pull their membership. If I was a greedy, self serving corporation I would absolutely do the same thing.  One of the principle tenets of the NAR; is the Realtor Code Of Ethics. Article #1 of the NAR Code Of Ethics is to deal with ALL parties honestly What does this mean to the consumer? I'll let you guess, but can you imagine if the drivers, in the biggest hurry,  could 'opt out' of following traffic laws. Or if Police, Politicians or other professional groups had zero restraints on their activities. Imagine a sea of Sales persons (not Realtors) under Redfin or any corporation, with no restrictions on what they do, who they deceive to earn a profit? That smiling face you see at the door.. are they gong to have the "best interest of the consumer at heart" ? Just asking, not implying anything. It is now for the consumer to guess.  To read the entire code of ethics as of 2023 prior to ruling Click - Realtor Code Of Ethics. 

What may be the potential outcome to consumers - More to come in weeks ahead.