Understanding the Sitzer/NAR Settlement.

On August 17, 2024, the real estate landscape changed nationwide following the Sitzer settlement. These changes affect how commissions are handled, how real estate transactions are navigated, and how buyers and sellers work with Realtors. Whether you’re thinking of buying or selling a home, it’s essential to understand how this impacts you—and how a licensed Realtor can help you navigate these changes smoothly.

For Sellers: What You Need to Know

1. Commission Transparency
   One of the most significant changes from the Sitzer settlement is that sellers will now see more precise information on how commissions are distributed. This transparency lets you understand precisely what you’re paying for and how your agent’s fees work. However, one key thing to recognize is that any compensation offers will no longer be visible on the MLS.

2. Negotiating Commissions
   With more transparency, you’ll have greater power to negotiate commissions with your Realtor. While this may seem overwhelming, your agent will help you balance fair compensation with the level of service you expect. 

3. Changes in Buyer’s Agent Compensation
   Previously, sellers often covered the buyer’s agent's commission as part of the transaction. With these new rules, this practice may no longer be automatic. It’s essential to discuss with your Realtor how this could impact your pricing strategy and negotiations.

For Buyers: What You Need to Know

1. Buyer’s Agent Commission Now on the Table
   Before the settlement, the seller typically covered your agent's commission, meaning buyers didn’t directly pay for their Realtor’s services. In some cases, buyers might be expected to pay their agent's commission themselves. A Realtor can help you understand how this affects your budget, negotiate on your behalf, and clarify their value proposition and what they will do for you as their agent. 

2. More Power in Negotiating Terms  
   With the shift in commission structures, you’ll have more opportunities to negotiate terms. Your Realtor will guide you through these discussions to ensure you understand how commission decisions affect your overall purchasing power.

3. Advocating for Your Best Interests
   A licensed Realtor remains your best ally in this changing environment. Whether negotiating commissions, finding listings, or working through legal paperwork, your agent will ensure you're fully protected and represented in every step of the process.

How a Realtor Can Help You Navigate These Changes

Licensed Realtors have access to the latest tools, market knowledge, and industry insights to help you make the best decisions for your situation. Whether you’re buying or selling, working with a Realtor ensures that you:

- Understand the New Rules: A Realtor will explain how these changes affect your transaction.
- Get Professional Guidance: Real estate transactions involve complex legal and financial steps. Your Realtor will handle these details while protecting your interests.
- Negotiate Fairly: With commission structures shifting, a Realtor will help you negotiate fair terms that fit your financial goals, whether you’re a buyer or a seller.

These changes may feel overwhelming, but with a trusted Realtor, you’ll have the expertise you need to navigate them confidently. I have 184 ways to show how i will support you throughout a transaction. Please drop me a line if you want me to show you how!