NAR reaches agreement to resolve broker commission issues
Will the National Association of Realtors settlement have a major impact? That’s what those who are buying or selling a home are wondering
The local association executive said the National Association of Realtors (NAR) does not set commissions, they are negotiable.
The NAR reached an agreement to resolve home sellers’ claims related to broker commissions. According to the Douglas Phillips, association executive, Greater Erie Board of Realtors (GEBOR) it’s a $418 million settlement that still needs to be approved by a court of law.
While many brokers make a 5-6% commission on home sales, Phillips said it depends on the broker. He pointed to the NAR statements, adding the Greater Erie Board of Realtors stance is that commission rates are negotiable.
“GEBOR, the National Association (of Relators), GEBOR MLS, we don’t regulate any commissions we don’t suggest what they should be, and we don’t talk about those at our committee meetings or our board meetings, said Phillips. “Those are just positions that are always up to each individual broker licensee, and their clients and consumers,” said Phillips.
We reached out to experts in real estate law who have not gotten back to us at this time.
“Our state of Pennsylvania has been very proactive and ahead of the curve in procuring documentation that clearly outlines and delineates all expectations and all conditions of contracts and I think most of our agents here in Pennsylvania are well versed in how to use these contracts and how to explain the value of the realtor and what is in those contracts.”
Phillips said those buying and selling homes should not be concerned about the potential NAR settlement.
“If you need to sell your home go ahead and continue that process speak with a realtor, find one you like, see what kind of value they can provide to you in helping you with that journey,” said Phillips. “Likewise if you need to buy a home it’s the same thing I think let your personal journey dictate what you’re going to do don’t worry about what might happen with the market.”
