BY COLBY FARR CONTRIBUTIONS BY BRITTANY ANDERSON
Multiple Listing Service changes could affect how real estate brokers are paid
Updated MLS policies The changes outlined by the NAR settlement in March that go into effect in August include:
Compensation disclosures to sellers, and prospective sellers and buyers, are required. MLS participants can’t filter or restrict listings to clients based on the level of compensation offered to the agent. Listing agents can no longer make compensation offers to buyer agents on the MLS.
After announcing a $418 million settlement in March, the National Association of Realtors is implementing policy changes for Multiple Listing Service platforms across the country later this year. The changes are expected to take effect Aug. 17 and could change how real estate brokers are paid. Officials from the Collin County Area Realtors association, which is affiliated with the NAR and tracks data across the region, explained how the settlement and policy changes can affect licensed brokers, buyers and sellers in the Dallas-Fort Worth area. The background The MLS is an online platform where licensed real estate professionals can list homes for sale or view homes that are already listed. Shana Acquisto, real estate broker and former president of the CCAR, compared the platform to Carfax, an online database that compiles vehicle information for buyers and sellers of used cars. Listing a property on the MLS platform gives it the best exposure, which typically leads to homes selling at higher prices, she said. Individuals have to hold a real estate license to access the applica- tion, MLS Director Terry Smith said. More than 800 MLS platforms are managed by realtor associations across the country, including the CCAR. For realtor associations affiliated with the NAR, the MLS policy changes must be implemented in August, according to a May 3 news release by the NAR.
What’s changing? Real estate brokers will still be paid for their services, but the way they’re paid could change in August. Compensation agreements will be reached through negotiation and consultation off of the MLS. “It’s just a change in our process,” Acquisto said. “Really nothing has changed because the fact is commissions have never been fixed.” Instead of a compensation offer being listed in the MLS, buyers’ agents now have to reach out to the seller’s agent through the MLS to inquire about compensation, she said. Buyers will have to sign a compensation agreement before touring any homes identified through the MLS. Interest rates and supply and demand will con- tinue to drive home prices in the post-settlement real estate market after the policy changes take effect, she said. “Nothing in NAR’s policies has increased costs for buyers or sellers, and this settlement preserves consumers’ choices regarding real estate services and compensation,” Acquisto said in an email. What’s next? After the policy changes take effect, a final approval hearing for the settlement is scheduled later in November. More information about the settlement’s impact on real estate professionals can be found at www.nar.realtor/the-facts. For potential clients looking to buy or sell a home, Acquisto recommended they connect with
MLS users must enter an agreement with buyers before home tours.
SOURCE: NATIONAL ASSOCIATION OF REALTORS/COMMUNITY IMPACT
2024
March 15: Settlement agreement signed April 24: Preliminary approval of settlement review granted by the court Aug 17: Practice changes take effect, earliest day for class action lawsuit notifications to be issued to those impacted Nov. 26: Final approval hearing for the settlement
SOURCE: NATIONAL ASSOCIATION OF REALTORS/COMMUNITY IMPACT
a licensed real estate professional. “Maybe some of the conversations are different, but since the beginning of time we’ve changed our processes and they’ve improved,” she said. “Change is a constant. What hasn’t changed is the law of agency and how we represent our clients on both sides.”
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