Earlier this month, the National Association of Realtors agreed to a historic deal that could change the entire industry. It eliminates the standard 6% sales commission.
We asked our friends at KMS Team at Compass for their thoughts. They say:
Since the March 15 announcement of the proposed settlement of lawsuits
against the National Association of Realtors, assessments of its impact on
commission rates and even home prices have been making headlines.
Right now, we know three things:
First, beyond the 1.5 million Realtors in the United States, millions of
people are interested in or passionate about real estate, fueling
interpretations and predictions about the impact of this proposal. It is all
speculation until the Department of Justice opines on the settlement offer.
Second, real estate is local. Buying and selling of homes is conducted
differently throughout the United States.
In Connecticut, for example, Buyer Brokerage Contracts were first introduced in 1990, which was among the earliest in the nation.
Agreements, now titled Exclusive Right to Represent Buyer, are required to provide clarity of services a buyer can expect from us and transparency regarding our fees.
Third, commission rates are and always have been negotiable in Fairfield
County. While discount brokerage models have existed for some time, our
community has embraced professional, full-service representation.
This 5-bedroom, 5 1/2-bathroom house at 50 Compo Mill Cove is on the market for $13,500,000. It is 3,915 square feet, on 0.39 acre.
As part of the proposed litigation settlement, NAR plans to modify certain
practices. For example, sellers may, but will not be required to, offer a
commission to the buyer’s representative. Any such offer will not be
included in its Multiple Listing Services.
We believe this may change how agents are compensated for representing home buyers. But the underlying reasons why they are compensated remain.
Like many real estate agents in town, the KMS Team at Compass is and has always been client-focused.
We all see ourselves as partners in achieving clients’ real estate goals. We do everything in our power to find buyers a home — a place where they feel comfortable physically, emotionally, and financially.
To achieve this we ask about, listen to, empathize with and anticipate our
clients’ needs and wants.
We search, evaluate, compare and present properties, and explain their towns/neighborhoods. We offer suggestions, propose alternatives, and recommend competent, trustworthy professionals for all
house-adjacent needs.
We handle paperwork, answer questions, and attend to details. We are on call nearly 24/7/365 for our clients.
(“06880” covers Westport real estate — and much more. Please click here to support our work. Thank you!)
Nice free advertising for KMS
an independent response would have been preferable
In spite of all the news media hype commissions have been negotiable in the real estate industry for years. In fact, in the last ten years the majority have been in the 2-4% range. unfortunately, truth does not make the news people want to read. Most Real Estate professionals put in a lot of time for their money. the State of Connecticut takes up to 2.25% of every real estate transaction before local fees and the Feds step in for their share while all the elected and appointed officials beat the drums for reducing the cost of housing. Hypocrites all!!!
are Westport realtors charging 2 percent commission??
the majority of listings on the MLS have been 4% with 2% going to the listing company and 2% to the selling company. a few have been less, and a few have been more. No secrets this is all public information.
Please provide a public link where we can see the commission (seller and buyer) offered for a home (any home) now for sale through the Multiple Listing Service in Westport or Weston. Where do we go today to see this public information? Here’s a list of homes for sale in Weston, but I see no public information about commissions.
https://www.realtor.com/realestateandhomes-search/Weston_CT
The claim that real estate commissions have always been freely negotiable was rejected by the jury, which socked the Realtors with a nearly $2 billion judgement in a deceptive-practices lawsuit. That jury’s verdict led to the nationwide retreat and proposed settlement, in which the Realtors agree to pay out hundreds of millions in compensation to sellers.
Without an admission of guilt, as is common in our system when liability is settled through payment of compensation, we now have a period of coordinated statements by realty companies (nearly identical pieces as this one appearing in free papers from coast to coast) continuing to make the disproved claim that commissions have always been freely negotiable, that it’s all a media concoction, that paying less than 6 percent means you’re trying to use a “discount broker,” etc.
The right focus to serve your readers, Dan, is which home sellers are eligible to be compensated under the proposed terms of the settlement.
A good place to start is this NPR summary:
https://www.npr.org/2024/03/22/1239486107/realtor-fee-commission-homes-for-sale,
“If you recently sold your home, you might get part of your realtor fee back.”
In short: Sellers in our area, like most of the nation, who sold homes between February 1, 2020, and February 1, 2024, are eligible to receive compensation through settlement of the main lawsuit in the case against real estate brokerages. Note: You do not have to used any particular brokerage to make a claim. Just (1) sold a home during those dates, (2) listed the home on a Multiple Listing Service, and (3) paid a commission to any real estate brokerage.
See the list of dates under Question 6 here:
https://www.realestatecommissionlitigation.com/faq#q-6
Under a second case, by the name of Keller Williams, the dates are October 31, 2019, through February 1, 2024. Again, you do not have to have used a brokerage with that company or any other particular company. See
https://www.realestatecommissionlitigation.com/faq#q-7
The NAR proposed “settlement” has yet to be approved by a judge, There are multiple layers here, and no one can foresee all of the ramifications of this proposed settlement.
Business continues as is, since nothing has changed.
The real estate transaction has gotten more complicated and involved, not less. Consumers need a professional to guide them on that journey. Every property is unique, and every consumer is unique.
CT has had a mandatory buyer agency and mandatory agreements for 30 years.
NAR talk about agents being released is a red herring as there are no agents who are defendants in any of these cases.
Remember, each state has its own laws and regulations governing real estate brokerage. Nothing in any court settlement changes those statutes and regulations.