What is Real About the Real Estate Headlines

As you may have seen or heard, there is a proposed settlement by the National Association of REALTORS® (NAR). While the settlement still requires final approval, there have been plenty of headlines in the media confusing.

To clarify some of the misinformation about the settlement, I want to provide a few facts:

Sellers retain, as they always have, the discretion to offer compensation to buyers’ brokers. The proposed settlement does not prohibit their ability to do so.

Commissions have always been and will continue to be negotiated through transparent conversations with our clients. We believe strongly in transparency around broker compensation.

Commissions have always been negotiable and are not set by law. Reduced fee alternatives have been and will continue to be available for consumers seeking those options.

The proposed settlement would require that every buyer represented by an NAR-affiliated agent sign a Buyer Representation Agreement outlining the relationship between the buyer and broker before touring a property, something that is already required in many states for over a decade.

Buyers deserve representation at every income level. Our experience has shown that transactions flow more smoothly when there is professional representation on each side, creating open lines of communication which benefit all parties involved.

Compass agents provide tremendous value to our clients. As a result, we will continue to encourage a transparent commission conversation that reflects the time, effort, expertise, and support we invest in each transaction.

Compass is fully prepared to adopt the changes laid out as part of the settlement. We see these updates as being positive both for our clients and for the brokerage community, as they provide additional transparency and clarity and will encourage the most professional agents to thrive.

If approved, the terms of this settlement will undoubtedly impact certain facets of the residential real estate industry. We hope that any changes will provide an opportunity to enhance the professionalism of the industry across the country and elevate Realtors® to the standards we at Compass have always held ourselves to.

Real estate is a relationship-based business, and the trust we’ve earned with our clients is something we greatly value. Together, we will navigate any changes to rules and regulations in our industry while continuing to provide our clients with the same exceptional service we always have.

It’s my strong belief that consumers will continue to seek out and be willing to compensate agents for their valuable advice and service, just like you hire an expert to consult and prepare your taxes, handle a legal matter, or style your hair. If you have any questions as additional details surface, please don’t hesitate to reach out.

The Allison Ziefert Real Estate Group is a top-producing real estate team based at Compass in Short Hills, New Jersey. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair/Glen Ridge, West Orange, Morristown, and the surrounding New Jersey towns. We’ve also got you covered coast to coast with the best connections to top agents around the country in any market you are exploring. We are driven by earning great testimonials and referral business from happy clients.