KIKO Shares Insight into NAR Settlement News

As many news headlines have reported, the National Association of Realtors® (NAR) recently announced an agreement that potentially would end the policy of shared commission structure, in which sellers pay both their own selling agent as well as the buyer's agent.

The agreement would end litigation of claims brought on behalf of home sellers related to broker commissions. If approved by the court, it will go into effect in mid-July 2024.

Here is the NAR's response to the public's main question:

Q: How does the settlement affect home sellers and home buyers?

NAR: This settlement would preserve the choices consumers have regarding real estate services and compensation.

• After the new rule goes into effect, listing brokers and sellers could continue to offer compensation for buyer broker services, but such offers could not be communicated via the MLS.
• MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home. These agreements can help consumers understand exactly what services and value will be provided, and for how much.

(Source: National Association of Realtors ®)

Note: MLS stands for Multiple Listing Service. It is an industry-specific tool to help listing brokers find cooperative brokers working with buyers to help sell their clients' homes.

Read the full NAR settlement >>>

Breaking down the jargon

Bottom line, you continue to have choices when hiring a real estate agent, and you should always press for professionalism, experience, and commitment from your agent.

Our hope is these types of policies will make the best agents even better and weed out those not committed to the highest level of service.

Professional Realtors receive continual education and will be trained to answer your questions not only about this settlement, but about home buying trends, interest rates and more. Make sure you’re working with a licensed agent who understands and can provide advice on your local market.

But what about the commission?

Real estate agents should explain what services they're delivering for the commission being paid. Don't be afraid to have an open conversation with your agent about that.

When working with KIKO, our service goes beyond the standard agent duties. We offer advice and support through the entire process: advice on how to price a home, negotiate and write solid contracts; full support with sales, marketing, and real estate closing services; and a commitment to local knowledge, global reach, and unparalleled service.

What also sets KIKO apart is our ability to offer buyers and sellers more options with both traditional for sale listings and real estate auctions. Both options have their benefits, and we share our nearly 80 years of industry insights so you can choose what’s right for you.

With specialists in rural homes on 5+ acres, farms and vacant land, and commercial real estate, we welcome dialogue that ensures everyone is reaching their goals.

Can KIKO still represent me as a home buyer?

Yes, KIKO agents are still able to represent you as a buyer. If you have questions, call us. We can explain the options you have when buying or selling real estate.

About the Author:

Dick Kiko Jr. is a third-generation member of KIKO - Realtors, Auctioneers & Advisors. He serves as the company's CEO and has been a licensed Realtor & Auctioneer for more than 20 years.