Understanding the NAR Settlement

By Kandie Frederick

Growing up on the central coast, Kandie is a third generation family in the North County and a second generation family in real estate. Joining Country Real Estate in 2000, and graduating from Cal Poly in San Luis Obispo, she brings a background of Agricultural Business to combine with her knowledge of the local real estate market. Working with her family and their decades of local real estate development, she is deeply connected to the roots of our community and its growth.
“This area continues to grow as people discover what a great travel destination it is, and what a great wine region it has become. Eventually, they realize what a great place it is to live and work as well. Adapting to the needs of our clients in a changing environment is always a priority. We remain the longest standing brokerage in a community we are deeply invested in. Our longevity is attributed to our innate ability to understand the North County: its people, its properties, and its culture.” -Kandie

What’s the latest with the National Association of Realtors (NAR) settlement? How will it impact those buying and selling homes? Lately, the NAR Settlement has been making waves in the news, often sensationalized to provoke fear among consumers with misleading information. Media outlets tend to exaggerate to grab attention, but they don’t always present the full picture.

Here are the facts about the NAR Settlement:

1. The NAR is under scrutiny for past practices, particularly concerning broker commissions and consumer access to listing information. Reports suggested the NAR agreed to remove the requirement for brokers to offer compensation on the Multiple Listing Service (MLS). However, the reality is that compensation offers remain, and commissions are no longer mandated to be listed on the MLS.

When sellers determine compensation for buyer’s brokers, it can broaden the buyer pool, leading to competitive offers and potentially higher prices. While the NAR Settlement ensures access to listing information, commission details remain open for negotiation. Consumers still have control over their representation and payment terms.

2. Removing certain rules may reduce costs, lower prices, and affect commission rates. However, this could also complicate negotiations, potentially impacting lower-income buyers’ ability to purchase homes. It’s worth noting that home prices are primarily influenced by market demand and supply, as seen in regions like Utah, where high demand and low supply drive price increases.

3. This information is crucial for everyone involved. The complexities surrounding the NAR Settlement can be confusing. Hiring an experienced Realtor is essential to ensure you are well informed about your options and guided through the process.

I provide valuable services to both buyers and sellers, explaining each option clearly to help you make the best decisions for your family. If you have any questions, feel free to call or email me.