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Thoughts on recent NAR lawsuit from a seasoned local Broker-in-Charge

Monday, June 3, 2024
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I am Laura Evans, the owner and Broker-in-Charge of Fuquay-Varina’s Independent real estate firm; Front Porch Realty.  I have been selling our local real estate since 1996 and have gained insight over the years, seen the ups and downs, and so much more! Here are my thoughts on the recent National Assocition of Realtors® lawsuit and settlement…I have said it will be “Business As Usual” for Front Porch Realty and I am still declaring this, here is why –

 

Here at Front Porch Realty, we have always been professionals when helping our seller and buyer clients.  At first contact we review the North Carolina Real Estate Commission’s WORKING WITH REAL ESTATE AGENT DISCLOSURE and enter into an Agency Agreement with them.  That way ethically, and legally, we can represent our client(s).
Traditionally, the sellers in North Carolina have paid their agent’s commission and their agent shares part of that commission with the agent that brings the buyer. This is one of the major changes dictated by the lawsuit. This compensation agreement has always been spelled out in our Agency agreements with great explanation to our seller clients, however “buyer’s agent” commission has also always been displayed on our local MLS for buyer’s agents to see.  With the recent lawsuit settlement changes, local MLS platforms will no longer be able to display any commission or fee a seller, or seller’s agency,  is willing to pay to a buyer’s agent. With this now in place, some agencies will need to either get their commission paid by their buyer client OR request the seller pay their commission when writing an offer to purchase.

At first glance, this may be a more “fair” way for agents to get paid for their services (the actual buyer they are representing pays them) however, forthcoming I see lots of unfortunate possibilities for buyers, as well as home sellers.

What if the Buyer does not have the funds to pay for their representation?  
They won’t be able to get proper legal representation for one of the biggest money transactions of their life?
What if a seller offers to pay a Buyer’s Agent for one offer and not another?
I see big Fair Housing red flags.
What if a neighboring home is offering a large Buyer’s Agent compensation and you are not offering any compensation to Buyer’s Agents?  ( Buyer’s agent compensation will be allowed to be displayed in all marketing of homes)
Is your home going to get “passed over” by buyers that can’t afford to pay for their representation?

 

 

 

To me, this ruling is an unfortunate step backwards in the world of buying and selling homes.  Commissions have ALWAYS been negotiable, and will continue to be.  Front Porch Realty agents hold themselves to the business ethics standard proclaimed by the National Association of Realtors® and we will continue to do so.

 

 

 

 

The second big rule change stemming from the NAR lawsuit is that Buyer Agents MUST enter into a written Buyer Agency Agreement with their buyer CLIENT prior to showing them a home. This is another “Business As Usual” practice for Front Porch Realty.  We KNOW there are lots of agents out there that will show prospective buyers homes at the drop of a hat, whether qualified or not, this has never been our practice at Front Porch Realty.  As a seller, do you really want a non-qualified buyer touring your home? We have practiced teaching and educating our buyers on what to do when entering the housing market to position themselves into the best possible scenario to buy a home. The key term here is CLIENT. Of course buyers will still be able to find an agent that will jump for them anytime, day or night, to show them a home in hopes they can “make the sale”.  Rest assured, Front Porch Realty agents put a lot of time, effort, and professionalism into helping our buyer client’s find a home and get them through offer to close.

 

 

 

Let us know how we can help you in your next real estate adventure!

 

 

 

-Laura Evans

 

Click HERE to get in contact with Front Porch Realty TODAY!

Filed under: About the Transaction | Real Estate: Fuquay-Varina | Tips for Buyers | Tips for Sellers