BUYERS & SELLERS: GET THE FACTS!
For decades, U.S. consumers have paid some of the highest Real Estate commissions in the world. In August 2024, a landmark class-action lawsuit (Sitzer-Burnett) against the National Association of Realtors (NAR) and real estate franchisors reached a settlement that has changed the landscape of real estate commissions. This is a WIN-WIN for consumers when you KNOW THE FACTS!
About the Sitzer/Burnett - NAR settlement
Sitzer-Burnett was a class action lawsuit settled by a Federal Court. The allegations were against the National Association of Realtors (NAR) along with some of the largest Real Estate Franchisors and their affiliated partners (MLS). The allegations of anti-competitive rules imposed on home sellers created an environment that engaged in unfair, unethical business practices. the settlement agreed upon by all the parties changes the landscape of how commissions are paid on the selling & buying side of real estate transactions nationwide.
FREQUENTLY ASKED QUESTIONS
- Are commissions now fully negotiable when selling my home?
Absolutely! The partnership you form with your agent should discuss your needs and service level to determine commissions.
- Is this just a statewide change?
No, this is a nationwide industry change.
- My agent says "nothing has changed." Is this true??
Commissions are negotiable between you and your agent when listing or buying, depending on your service needs.
- My agent tells me if I don't offer 5% to 6%, buyers agents will not show my home. Is this true?
This is considered an unethical business practice which agents should never engage in. Commissions are negotiable, not mandatory.
- As a buyer, am I now responsible to pay for services that my realtor provides?
Yes, but not necessarily! Buyers now negotiate a fee structure with their agent. If the fee is reasonable, a seller may happily pay or offer a contribution to the fee requested.
- My agent has given no option to negotiate a fee, saying they require 2% to 3%. Is this true?
Commissions were established as negotiable in the lawsuit. It is considered an unethical business practice for a realtor to engage in a non-negotiable fee with a buyer.
- My agent has advised me that they can search out homes that only pay their fee. Is this true?
Under the settlement, this is also considered an unethical business practice.
- How is this a "win-win" for the buyer?
A buyer could possibly purchase a home for less when a seller is required to pay less fees on the buy-side of commissions, which is why it is important for the buyer to negotiate a fair fee structure with an agent for their services.
- As a buyer, is it a benefit for me to call the listing agent directly?
It certainly can be!
- As a seller, if my list agent brings the buyer to the table, will this help save on buyer/broker commissions?
That should be determined before you list with that realtor. Commissions on both sides are fully negotiable.
- If I call directly to the list agent to see a home, does this mean I will have no representation?
No. In the state of Florida, realtors are transactions brokers.
- What is a transaction broker?
In Florida, realtors are transaction brokers, a neutral third party facilitating the transaction between the buyer and seller, in limited form of representation to both parties.
Still have questions? Want to know more? CALL US and GET THE FACTS!
Your 24/7 Team | Ph (352) 751-0247
Absolutely! The partnership you form with your agent should discuss your needs and service level to determine commissions.
- Is this just a statewide change?
No, this is a nationwide industry change.
- My agent says "nothing has changed." Is this true??
Commissions are negotiable between you and your agent when listing or buying, depending on your service needs.
- My agent tells me if I don't offer 5% to 6%, buyers agents will not show my home. Is this true?
This is considered an unethical business practice which agents should never engage in. Commissions are negotiable, not mandatory.
- As a buyer, am I now responsible to pay for services that my realtor provides?
Yes, but not necessarily! Buyers now negotiate a fee structure with their agent. If the fee is reasonable, a seller may happily pay or offer a contribution to the fee requested.
- My agent has given no option to negotiate a fee, saying they require 2% to 3%. Is this true?
Commissions were established as negotiable in the lawsuit. It is considered an unethical business practice for a realtor to engage in a non-negotiable fee with a buyer.
- My agent has advised me that they can search out homes that only pay their fee. Is this true?
Under the settlement, this is also considered an unethical business practice.
- How is this a "win-win" for the buyer?
A buyer could possibly purchase a home for less when a seller is required to pay less fees on the buy-side of commissions, which is why it is important for the buyer to negotiate a fair fee structure with an agent for their services.
- As a buyer, is it a benefit for me to call the listing agent directly?
It certainly can be!
- As a seller, if my list agent brings the buyer to the table, will this help save on buyer/broker commissions?
That should be determined before you list with that realtor. Commissions on both sides are fully negotiable.
- If I call directly to the list agent to see a home, does this mean I will have no representation?
No. In the state of Florida, realtors are transactions brokers.
- What is a transaction broker?
In Florida, realtors are transaction brokers, a neutral third party facilitating the transaction between the buyer and seller, in limited form of representation to both parties.
Still have questions? Want to know more? CALL US and GET THE FACTS!
Your 24/7 Team | Ph (352) 751-0247
Contact Information
Your 24/7 Team, REALTORS®NextHome Sally Love Real Estate
Wildwood, FL 34785
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