KMS Team: About the Settlement

Since the March 15 announcement of the proposed settlement of lawsuits against the National Association of Realtors, assessments of its impact on commission rates and even home prices have been making headlines.

Right now, we know three things:

First, beyond the 1.5 million Realtors in the United States, millions of people are interested in or passionate about real estate, fueling interpretations and predictions about the impact of this proposal. It is all speculation until the Department of Justice opines on the settlement offer.

Second, real estate is local. Buying and selling of homes is conducted differently throughout the United States.

In Connecticut, for example, Buyer Brokerage Contracts were first introduced in 1990, which was among the earliest in the nation.

Agreements, now titled Exclusive Right to Represent Buyer, are required to provide clarity of services a buyer can expect from us and transparency regarding our fees.

Third, commission rates are and always have been negotiable in Fairfield County. While discount brokerage models have existed for some time, our community has embraced professional, full-service representation.

As part of the proposed litigation settlement, NAR plans to modify certain practices. For example, sellers may, but will not be required to, offer a commission to the buyer’s representative. Any such offer will not be included in its Multiple Listing Services.

We believe this may change how agents are compensated for representing home buyers. But the underlying reasons why they are compensated remain.

We’d be happy to discuss how we partner with our clients to achieve maximum success with minimal stress in each real estate transaction. Give us a call — 203.295.4375, or email kmsteam@compass.com.