HELENA — A negotiated settlement with the National Association of Realtors (NAR) will be implemented later this month,making the home-buying process more transparent for consumers.
A series of lawsuits made against the NAR resulted in a settlement agreement that created new rules and broker commissions beginning August 17. The trade group will also be required to pay out nearly $420 million over 4 years.
Two big things came out of this settlement.
Buyer agreements must be in writing, and offers of compensation traditionally made through MLS must be made in conversations between brokers.
Rick Ahmann, Real Estate Broker & Owner of Ahmann Brothers Real Estate, says his business has already been abiding by some of these new rules by entering into buyer-broker agreements with clients prior to showing them a home.
“So, the biggest change in our business model will be that we have to communicate the compensation offers that our firm will be making on homes that we have listed," says Ahmann. "We’re no longer able to do that through a database or a clearing house so that now has to be done with agent-to-agent conversation."
Ahmann says he sees no downside to these new rules and that it elevates the profession.
“For the consumer, it means transparency, and that’s very helpful, right? I think it’s important and our clients deserve to know how we make our living. And so, this will be conversations that have to take place. That increases transparency."
Alisia Landis — a mother of four who hopes to one day quit renting and buy her own home — says transparency during the homebuying process should be beneficial.
“Purchasing a home is a big investment and I think that the more transparency, the better it would be for anybody, especially the home buyer,” says Landis.
Chick Wassell moved to Helena in 2005 and bought a home. He believes that high commissions in certain markets shouldn’t interfere with the demand for housing.
“I think it’s a great idea. I think that in certain markets maybe it’s worth having a high commission, but in others where there’s a lot of sales, a lot of appetite for purchases, I think it’s, I don’t think the commissions, the high commissions, are worthwhile,” says Wassell.
