I’ve noticed a lot of misinformation circulating in the media about real estate commissions, so I want to provide some clarity. The recent proposed settlement by the National Association of REALTORS® (NAR) has stirred up discussion, with some sources incorrectly claiming that NAR sets fixed commissions. However, commissions have always been negotiable.
The main purposes of this settlement are to protect NAR members and maintain consumer choice. One significant change is that the broker compensation will be prohibited from appearing in the Multiple Listing Service (MLS), but continue to be an option consumers can negotiate outside the MLS. Buyer brokers can still be compensated through various means, including but not limited to a shared portion of the listing broker’s commission, concessions from the seller, or directly from the buyer.
Additionally, MLS participants working with buyers will be required to have written agreements with their buyers before touring homes. Although South Carolina is one of only a handful of states that already require buyer agency agreements, it’s important to remember that the listing broker represents the seller. Having a dedicated buyer’s broker advocating for your interests can provide significant advantages when navigating the complexities of the real estate market.
These changes will be go into effect mid-July pending court approval, please do not hesitate to contact me if you have any questions.