What You Need to Know About the NAR Settlement

By Doug Cary

Doug Cary has been selling real estate in Davis County since 2005. He is a 2nd generation top producing Real Estate Agent.

There’s a lot of news about a massive lawsuit in our nation affecting real estate commissions, and many people have been asking me whether they still have to pay a real estate commission to the buyer’s agent when selling their home. In Utah, commissions have always been negotiable, so the changes from this lawsuit don’t significantly impact our state. We’ve been ahead of the curve for a long time, offering variable commissions based on market conditions—hot, slow, or medium. Your real estate agent can assess these conditions and advise you on an appropriate commission to offer without negatively affecting your sale price.

One question I frequently get is whether you can legally offer zero commission to the buyer’s agent. Yes, you can. But should you? No, because offering no or a very low commission to buyer’s agents will likely result in fewer buyers seeing your home. The recent lawsuit has led to policy changes where buyers must now sign a buyer’s agency agreement to view properties with an agent. This agreement means buyers agree to pay a set commission, and if the seller doesn’t offer that amount, the buyer must cover the difference, possibly by increasing their closing costs or down payment. This could discourage buyers from viewing your home, which isn’t ideal.

Fewer showings generally mean less competition and lower offers, which means prolonging your home’s time on the market. So, it’s important to consult with your real estate agent about the appropriate commission in your specific market. Since market conditions and standard commissions vary, your agent’s advice will be invaluable.

Feel free to reach out to me if you have any questions about these changes or need guidance on selling your home. I look forward to hearing from you!