WHAT THE NAR SETTLEMENT MEANS FOR YOU
We wanted to drop a note in regards to the media announcements swirling in regards to the NAR lawsuits and what this really means for Real Estate, Buyers, Sellers, and Buyers Commissions. We thought it would be good to share the truth of the situation and to offer a phone call if you are wondering how this lawsuit will now affect you as a Buyer or as a Seller in the future after July’s date when this will take effect.
There will be new forms and changes that will take place over the coming months and we will keep you updated in this blog as they are rolled out.
For more information, straight from the horse's mouth, here is the truth: Correcting the Record: NAR Does Not Set Commissions
Please don’t hesitate to reach out to us by phone or email to discuss this further. We are here to help you understand the changes and how they will affect you, your family, and your future in Real Estate.
PRICES ARE MARKET DRIVEN
Despite what the headlines may have you thinking, brokerage commissions do not dictate home prices. Home prices are determined by the market and come down to basic economics (supply & demand). Below see a chart comparing the average home price vs. the average commission rate. This shows the real story, which is the opposite what you may be reading in the news. Over the past 20 years, when home prices have gone up, average commission rates have gone down, and vice versa.
Source: Home price data from FRED; Commission data from Real Trends & Clever analyzed by Self Financlal, Inc.
REAL ESTATE COMMISSION DISTRIBUTION
Please don’t hesitate to reach out to us by phone or email to discuss this further. We are here to help you understand the changes and how they will affect you, your family, and your future in Real Estate.
