There’s been a lot of buzz about the new NAR settlement (National Association of Realtors) and how it’s shaking things up for real estate agents. If you haven’t heard, this change is basically rewiring the way agents get paid, and people have been asking for my take on it. Here’s the scoop, and I’ll keep it quick!
First off, traditionally, when you sell a house, you’re looking at a 5-6% commission fee that the seller typically covers. The seller’s agent then splits that commission with the buyer’s agent.
But now, the rules are changing, and the buyer’s agent has to negotiate their fee directly with the buyer. So, no more sneaky commission hikes behind the scenes by agents teaming up.
As an investor, I’m loving this change. Why should I be paying the buyer’s agent when I sell? Now, with potentially lower commission fees, sellers like me get to keep more profit from the sale. Who wouldn’t want that, right?
But it’s not just good news for sellers. This change is also a wake-up call for buyer’s agents. Now, they have to prove their worth and hustle for that commission. No more easy rides—agents will have to show their value through marketing, social media, and the services they offer.
It’s a chance for the real go-getters to shine and set their own rates, whether that’s a flat fee or a percentage.
This is a big shift, and it’s going to make some agents nervous, especially those who’ve been cruising on autopilot.
But for those with an entrepreneurial mindset, this is a golden opportunity to grab a bigger piece of the pie.
And let’s not forget about the buyers. Sure, you might have to cover the buyer’s agent fee out of pocket, but in many cases, you can roll it into your loan. It’s just another closing cost, and honestly, it could be a fairer system.
If your agent’s putting in serious work, they should get paid for it. If not, you get to negotiate something more reasonable.
In the end, like any industry shake-up, the ones who adapt and take advantage early will come out on top. This is a chance for real estate to become more transparent and for everyone—sellers, buyers, and agents alike—to find better value in their transactions. Let’s see how it all plays out!
