Commission + Representation
Key Practice Changes in Real Estate 2024
What You Need to Know
National Association of Real Estate Settlement Changes as of 8/17/24
On August 17th, 2024, the real estate industry underwent a significant transformation in how real estate commissions are paid. These changes, the most substantial in over 30 years, stem from a lengthy lawsuit involving the National Association of Realtors (NAR), various Multiple LIsting Services (MLS), and real estate brokerages across the United State. The settlement resulting from this lawsuit has effectively decoupled real estate commission structures.
Commission + Representation
Ultimately, the settlement formalizes the decoupling of compensation, not the elimination of compensation or buyer representation.
Historically, commissions were negotiated by the listing agent with the seller, and a portion was then shared (coupled) with the buyer's agent.
With the changes, listing and buyer's agents must have separate contracts/agreements with their respective client to ensure compensation transparency.
Three Key Contracts/Agreements Will Now Govern Real Estate Transactions
Listing Contract/Agreement: Between the seller and the listing agent.
Buyer Representation Agreement: Between the buyer and the buyer agent.
Purchase/Offer Contract: Between the seller and buer.
For My Buyers
These changes require us to have a signed Buyer Representation Agreement with you before showing homes. A rule that spans the entire nation.
Buyer Agent Comissions Can Be Paid in Several Ways Moving Forward
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- Buyer can pay their agent directly.
- The fee can be negotiated into the purchase/offer contract through a seller concession.
- A combination of both methods can be used.
For My Sellers
My listing service fee/commission is agreed upon in your listing contract. The buyer's agent commission is a negotiable aspect of each offer you receive and consider, just like all other contract terms.
My Commitment to You
I am committed to negotiating on behalf of you, my client, whether on a transaction's listing or buying side.
I fully understand the nuances of these changes and are dedicated to ensuring you receive the best possible representation and service.
"...clearly differentiates her from other agents..."
"I respected Tammy’s need to balance the commitments and interests of the people she represents to maintain a sense of quality and fiduciary duty. She has a strong understanding of the Portland real estate market and home buying process that clearly differentiates her from other agents."
"...she took care of it like it was hers."
"My experience with Tammy was stellar. I trust her 100% which took so much stress out of the selling process. She is very knowledgeable about the market, and offered valuable input on pricing and strategy. I hadn’t listed a home for years, and Tammy was always available to answer my questions and ensure that I was comfortable every step of the way. She works extremely hard, pays attention to every detail, always kept me informed, and once my house was on the market, took care of it like it was hers."
"...recommend her without reservation."
"My experience of Tammy’s genuine kindness and care and was mirrored in every person I came across in the process - other realtors, the title company, the lender, contractors, etc. – and her connections smoothed the way for me countless times. I really can’t say enough good things about Tammy, and recommend her without reservation."
"...knowledge, her experience, and her patience..."
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