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Major NAR Changes to Real Estate Commissions: What You Need to Know About New Policies for 2024

The National Association of Realtors (NAR) is making big changes to how buyer agent commissions work in the Multiple Listing Service (MLS). These changes come from a major settlement in an antitrust case. So, what’s changing, and what does it mean for you? Let’s break it down in simple terms.

What is Changing?

Starting August 17, 2024, NAR’s new rules will take effect. The main change is that listing brokers and sellers will no longer be required to offer commissions to buyer agents through the MLS (www.nar.realtor).

Why is it Changing?

The old system had something called “tying,” where the seller’s agent set the commission for the buyer’s agent. Critics said this practice made competition harder and kept fees too high.

A study showed that homes offering lower commissions were less likely to sell, suggesting that agents might steer buyers toward higher-commission homes (Brookings).

The new rules aim to make things more fair and transparent (www.nar.realtor).

What are the New Rules?

Here’s what’s new:

  • No More Mandatory Buyer Agent Commissions: Listing brokers and sellers won’t have to offer commissions to buyer agents via the MLS.
  • Written Agreements Required: Agents must have a signed agreement with buyers before showing homes. This will detail the services and compensation.
  • Transparency and Cooperation: MLSs must remove all compensation fields and related info. They also can’t create alternative platforms for offering compensation to buyer agents (www.nar.realtor).

How Can RealtyCandy Help with the Commissions?

At RealtyCandy, we’re here to help you navigate these changes. We’ve built a new app named Co-op Commission that lets you set a percentage or amount of commission for your featured listings only. This gives you flexibility and control in this new environment.

Our app integrates easily with your IDX data, allowing you to manage commissions on each listing. Whether you prefer to offer a specific percentage or a flat amount, our app can handle it. This feature is especially useful now, giving you an edge and helping you stay compliant with the latest rules.

How Can I Get the Co-op Commission App?

Co Op Commission Addon

Partner with RealtyCandy to unlock fantastic tools like our Co-op Commission app and numerous other valuable features—all available for free if you have an IDX Broker account! Check out RealtyCandy to see our full range of services, and explore IDXAddons for a wide variety of apps, widgets, and templates that work seamlessly with IDX Broker.

We understand change can be tough, but it also brings new opportunities. The real estate market is adjusting, and there’s room for new approaches and strategies. At RealtyCandy, we’re excited to help you through this evolution, offering tools and support to keep you ahead of the game.

Reach out to our support team if you want information on how to start using this app!