NAR Update for DMAR Members | April 2024
Dear DMAR Members,
With the recent announcement of the proposed settlement agreement from the National Association of Realtors® (NAR), we want to ensure you have a clear understanding of its implications and how it may affect your business.
If the settlement is approved by a federal court, two areas of focus will be effective mid-July 2024:
- Compensation offers will no longer be allowed on the MLS. However, it's important to note that the NAR agreement does not prevent sellers from offering compensation to buyers’ agents. Such offers could still be pursued off-MLS through negotiations with real estate professionals.
- Written agreements will be mandatory when MLS participants act for buyers. We believe this would enhance consumer transparency and ensure that buyer agents are duly compensated for their valuable services. Colorado has long been at the forefront of buyer agency, with established processes and listing contracts spanning over two decades. This places us in a favorable position to continue delivering value to both buyers and sellers in our market.
In the aftermath of NAR's announcement, there has been misinformation and media confusion circulating. One recurring headline is that buyers and sellers will no longer be required to pay a “standard commission.” Commissions have always been negotiable. These changes aim to make the commission process more transparent between buyer agents and their clients. Another common misconception is that sellers will no longer be obligated to offer compensation to buyer’s agents. Whether to assist a buyer with commission or closing costs is ultimately the decision of the seller; however, many sellers recognize the value in doing so, as it can make their property more appealing to a wide pool of buyers by easing expenses, particularly for first-time buyers.
Rest assured, DMAR remains committed to providing accurate and timely information. Our partnership with Decibel Blue, our PR Firm of over a decade, ensures transparency and upholds our role as the voice of real estate for the Denver Metro Area. We're fortunate to have a dedicated group of members who serve as well-trained media spokespeople, reinforcing our message to the public.
As an Association, we've tackled challenges together, from the 2008 housing crash to the 2020 pandemic and beyond. In times of uncertainty, we've demonstrated resilience and adaptability, guiding our members through our ever-evolving market. We will continue to navigate these changes collectively, supporting our members every step of the way.
As we navigate these changes, DMAR reaffirms its commitment to facilitating transparent, ethical and successful real estate transactions. We'll continue to provide updates as new information becomes available, ensuring you and your clients are equipped with the latest insights.
To assist you in navigating these changes and accessing accurate information, we've compiled a list of resources:
- Official Press Release from NAR
- The Facts for Realtors®
- Video from NAR President Kevin Sears and CLO Katie Johnson
- DMAR's NAR Litigation & News Updates landing page
- Opinion: Debunking the NAR settlement Myths (Housingwire.com)
- Settlement Briefing from NAR Leadership
- The Truth about the NAR Settlement Agreement (Realtor® Magazine)
- Correcting the Record: NAR Does Not Set Commissions (Press Release)
- Kevin Sears: Discussing Key Settlement Considerations and Ongoing Advocacy Efforts On the Road (Video)
- facts.realtor (read the legal documents, a fact sheet, FAQs and more)
- competition.realtor
We encourage you to utilize these resources and stay informed.
At DMAR, we're dedicated to supporting you through our ever-changing real estate landscape. Thank you for your continued trust in us. If you have any questions, please contact communications@dmarealtors.com.
Warm regards,
Jen Routon, 2023-2024 DMAR President
Brendan Bailey, DMAR CEO
