NAR Settlement Statement

There has been a lot of attention in the media recently in regards to the proposed settlement from the National Association of Realtors.  There has been, from what I am reading in news publications, some mis-information reported and analysis that I believe is misplaced and ill-informed.

As a professional in the real estate industry for going on 20 years, I, along with our Realtors at Benefit Realty have become a trusted source of information to our clients in regards to their real estate transactions.  Given this responsibility I wanted to take the time to address the settlement.  

If the settlement proposed is approved, the earliest any changes would go into effect is mid-July 2024.

The biggest change and the change that I think will affect Wisconsin home-sellers and home-buyers the most is the portion of the settlement that would restrict MLS participating agents from offering compensation to cooperating brokers through this platform.

As Realtors, our job is multi-faceted.  A large portion of our job is marketing our listings to the best of our ability using methods that bring the most demand. By doing this effectively we are able to ensure that our clients receive the highest value for their property that the market supports.  Offering compensation through MLS to cooperating brokers has historically been part of an effective marketing strategy.  

Something to keep in mind when reading news articles about this settlement is that a lot of this reporting is focussed on a total commission being paid by a seller and the false premises that there is a standard commission rate that will be going away as a result of this settlement.  I would like to be very clear in stating that there is no standard real estate commission rate.  The very fact that Benefit Realty and our business model exists and has been successful over the past 20 years is a testament to that fact.  We live in a free market economy based on supply and demand and competition of private enterprises.  Consumers have choices and always have.   

It is my opinion that this portion of the settlement does nothing more than harm the home buyer by potentially limiting their opportunity to afford representation, and harm the home seller and their ability to market their property effectively.  

That being said, in Wisconsin we have an amazing Realtors Association who has always worked to protect consumers and homeowners.  We are professionals and we will adapt and adjust and do what we have to to ensure the integrity of our field and continue to offer the highest level of representation and service to our clients.

As always, we are here at Benefit Realty to answer any questions or concerns that you may have when navigating the real estate process. There is a lot that still has to be determined prior to this settlement being accepted and rules enacted.  But we will be prepared and ready when the time comes.

 

Written By: Angela Kallay, Broker-Owner