New Jersey residents entering the real estate world are likely curious about how the recent NAR lawsuit will impact their careers. Let's break down the key points and what they mean for aspiring and current agents.
What Changed?
The National Association of Realtors (NAR) reached a settlement agreement after lawsuits claimed they restricted how commissions were set. Previously, Multiple Listing Services (MLS) listings had to include an offer to compensate the buyer's agent. Now:
MLS listings cannot show buyer agent commission.
Sellers can still offer compensation, but it cannot be advertised on MLS.
Buyer agents must have a written agreement with their client outlining compensation before showing properties.
What This Means for You
Listing Agents: You can advise sellers to offer buyer agent compensation, but it won't be on MLS listings. This might lead to fewer showings if buyers' agents aren't aware of compensation being offered.
Buyer Agents: You'll need a signed agreement with clients outlining your compensation before showing properties.
Buyers: You'll have more control over your agent's fees, but may have difficulty finding agents willing to work without confirmed compensation from you or the seller.
Headlines are Misleading
Don't believe claims that commissions are "destroyed forever" or can be negotiated to zero. Commissions are still very much negotiable, but the process may change.
Who Wins and Loses?
Sellers: May benefit if they can negotiate lower commissions with buyers who don't use agents. However, their homes might take longer to sell without buyer agent promotion on MLS.
Buyers: May have more control over agent fees, but could struggle to find representation without confirmed compensation.
Buyer Agents: May see a decrease in clients if buyers are unwilling to pay them directly.
NAR: May see a decline in membership due to agent dissatisfaction with the settlement.
The Future of Real Estate
The industry adapts to change. People will still seek real estate careers, and buyers and sellers will still need professional guidance. Garden State Real Estate Academy remains committed to helping aspiring agents get licensed in New Jersey.
Want to Learn More?
Visit our website to explore our daytime, evening, and online pre-licensing courses: tocrres.com/register
NAR recent lawsuit against the State of New Jersey has important implications for those pursuing real estate education in the state.
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