Tam Warren tells why the NAR settlement shouldn’t scare you

By Maddie Cavataio August 20, 2024 12:00 pm

Tam Warren tells why the NAR settlement shouldn’t scare you – CortacaToday

ITHACA, NY (CortacaToday) — The National Association of Realtors agreed to a new set of rules regarding relations between real estate professionals and their clients with a $418 million settlement. In effect since August 17th, 2024, here’s the two main things you need to know according to Tam Warren, Vice President of Warren Real Estate:

1. Before touring a home, buyers working with a Realtor must sign a written agreement:

These agreements are aimed at providing clear information as to how a Buyer is represented and how an agent is paid. Tam Warren emphasizes the importance of buyer consultations with agents to ensure a clear understanding of the home buying process.

“These agreements are essential for explaining how buyers are represented and providing transparency about how the buyer broker is compensated,” Warren says. “Buyers have options—they should discuss the length and terms of the contract with their agent. It’s really about increasing transparency throughout the entire process.”

2. Seller’s agents will no longer be able advertise commission fees on multiple listing services 

MLS stands for “Multiple Listing Service.” It’s a database used by real estate agents and brokers to share information about properties for sale. The MLS allows agents to see listings from other agents, which helps them find homes that match their clients’ needs. It’s a key tool in the real estate industry for accessing detailed property information. Each region typically has its own MLS, and access is usually restricted to licensed real estate professionals. It used to be that the amount of commission that could be earned from a sale would be listed.

“The changes are positive for the industry, enhancing both transparency and professionalism. The settlement’s intent is to make the home buying and selling process more transparent, particularly by clarifying that Sellers are not obligated to offer Buyer Broker fees. While this was never a requirement, it has been a common practice that we continue to support. The average person buys a home every seven to ten years, and a lot can change in that time. At Warren Real Estate, we’ve been in business for seventy-one years, and adapting to industry changes is a natural part of our success,” says Warren.

What is important is that when it comes to real estate transactions, especially with new rules and regulations put in place, hiring a professional and that can explain exactly what you should know during the process of buying or selling a home is crucial.

“It’s important to ask two things when choosing a Realtor: the experience and track record of the real estate company, and the experience and track record of the real estate professional. This new settlement might even filter out those who are well-suited for the field and those who are not. Making sure to pick the right agent and company is what matters the most among these new changes.”