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NAR Members Blanket Media With Pro-Consumer Messaging As changes in the real estate industry take hold, NAR members have stood at the ready to offer answers for buyers and sellers. Members of the National Association of REALTORS® launched a full-court press over the past two weeks to address the question on the lips of national and local news media around the nation: What do the practice changes in residential real estate mean for consumers? On Aug. 14 alone, four NAR members—President Kevin Sears, Vice President of Advocacy Nate Johnson, Leadership Team Member Vince Malta and Regional Vice President Jennifer Stevenson—participated in interviews that resulted in 311 airings and reached an audience of more than 10 million as part of a virtual media tour. One news story at a time, they worked to: Give consumers an accurate picture of the practice changes; Stress the importance of transparency and choice in a real estate transaction; Reinforce the skill, knowledge and integrity that real estate agents who are REALTORS® bring to the buying and selling public; and  Establish facts.realtor as the single source of truth on the proposed NAR settlement and resulting practice changes. The practice changes, which went into effect Aug. 17, are part of NAR’s proposed settlement to end class action litigation brought by home sellers concerning real estate commissions. Although the settlement doesn’t prohibit offers of compensation, they are no longer permitted on multiple listing services. In addition, before they tour a house with a buyer, buyers’ representatives are now required to get a written agreement that specifies their services and the compensation that they and their buyer have agreed to. The Blitz The Aug. 14 virtual media tour represents only a small fraction of NAR’s communications and outreach since the proposed settlement was announced on March 15. In the weeks leading up to the Aug. 17 practice change implementation date, in addition to communicating almost daily with members, NAR conducted media briefings; released videos, articles and podcasts to walk through the implications of the practice changes; and created consumer-focused content for use by members. As the implementation date approached, the association’s outreach went into hyperdrive, as NAR members did interviews with a wide range of major national outlets, including The Associated Press, USA Today, Marketplace, The Washington Post, ABC’s “Good Morning America,” The Wall Street Journal, CBS Weekend News, Fox News and CNN. In addition, Sears and NAR CEO Nykia Wright appeared on the popular “Real Estate Insiders Unfiltered(link is external)” podcast, hosted by NextHome’s CEO James Dwiggins and Chief Strategic Officer Keith Robinson. And, along with the rest of NAR’s 2024 Leadership Team, the two have taken the stage at event after event to talk about the proposed settlement, the practice changes and the road ahead. -REALTOR® Magazine

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NAR offers new advice for sellers on agent compensation With industry rule changes now in effect, the National Association of Realtors has been doubling down on education and outreach to buyers and sellers. The National Association of Realtors is growing its series of post-settlement guides for consumers, with the most recent addition aimed at helping sellers understand their options for choosing — or not — to make an offer of compensation. What NAR is telling consumers about agent pay: The new seller guidelines start with a brief summary of what an offer of compensation is and the typical costs. But ultimately, NAR is taking a clear stand on reaffirming the practice changes for agents and ensuring consumers that they are the ones in the driver's seat. "It is up to you to determine if making an offer of compensation is the best approach for selling your property," one guideline states, while another adds that agents can "only offer compensation or make a payment to a buyer's agent if they have your written approval and sign-off on the amount." Educating sellers on different types of compensation: While NAR has emphasized that commissions have always been negotiable, that's news to some consumers — especially younger sellers. An NAR report earlier this year found that nearly a quarter of millennials did not know they could negotiate agent fees. That may be due to the fact that historically, the vast majority of sellers have paid 5-6% commission, shared between the listing and buyer agent. But with cooperative compensation no longer set in stone, NAR is being more direct when communicating with consumers, reinforcing the idea that commissions are negotiable and sellers can choose to compensate agents in different ways. "There are many options available to you as a seller to discuss with your agent," NAR wrote in its latest guide. "These could include a flat fee paid directly to the buyer's agent or allowing your agent to share a part of their compensation with the buyer's agent." The NAR clarifies that concessions, such as closing costs and property repairs, help reduce buyers' upfront expenses and make homeownership more accessible. However, while concessions can cover some transaction costs, buyer agent fees are not specifically mentioned. Communicating concessions has been a tricky issue for some MLSs. In the spring, the country's two largest MLSs, CRMLS and Bright MLS, added concessions fields that allowed agents to include an amount sellers were willing to offer. Bright MLS also gave agents the option of specifying, at closing, the type of concessions offered — including the payment of buyer-broker fees. CRMLS ultimately changed its field to say only that sellers were willing to consider concessions, and Bright soon followed suit, while also removing any mention of buyer agent fees. - REAL ESTATE NEWS