If you’re reading this, you’ve likely seen the news about the recent NAR settlement and want to know if there’s more to it, than just what a quick shocking headline can summarize. In an ongoing and unresolved dispute, we’re always told to be careful when discussing, but let’s at least look at how Northwest Arkansas fits in to this whole equation.
Personal thoughts & background: 8 years ago I became a licensed Realtor. It was a smoother transition than I thought it would be from my previous job (in which I traveled constantly), most likely because I was always “selling” the idea of Northwest Arkansas anyway, to co-workers and sometimes even complete strangers. But in my opinion, describing the appeal of this area, which can often sound like bragging, isn’t really that difficult.
But regardless of where we live, I’d like to think Realtors everywhere would agree that there isn’t any feeling like handing door keys to a buyer when they’ve just purchased a new home, or helping a seller move on to a new chapter in their life. But those exact moments, near the end of a transaction aren’t the ones I usually remember. Chances are, we were faced with some unexpected plot twist or road block that we had to work through together. In those moments, when a seller is hoping that this buyer will “be the one,” or a buyer is hoping this home will still “be the one,” I’ve found the best and only thing is to be honest and transparent about the possible outcomes, and talk through it. I’ll apply that here.
First of all, what happened? In 2019 a group of plaintiffs alleged that the National Association of REALTORS® participated in a conspiracy (yep, buzz word, but that’s from the actual agreement), to raise and fix real estate commissions, which is a violation of the Sherman Act.
FACT: Real Estate Commissions have always been negotiable, between Realtors and their clients. Has it always been transparent and clearly explained to potential Buyers or Sellers? It has in Arkansas! We’re already required by state law to have representation agreements. Arkansas REALTORS® made this a top priority years ago so that both buyers and sellers could understand, in writing, what to expect from their real estate brokers, as well as the terms of their compensation and how it can be paid.
Why did NAR settle? The settlement wasn’t an admission of guilt: As a matter of fact, in the written agreement, NAR denies the allegations, and states that they have filed some post-trial motions to re-define some of the claims. But why settle? Short answer: by settling, they were able to try to protect Realtors from future “copycat” lawsuits. They also felt that continuing to litigate after several years would have hurt their members and their small businesses.
What will change? Well, for us Arkansas Realtors, not much. We’ll still keep serving and advising buyers and sellers with written agreements in place, that lay out any terms of compensation. And the MLS will still be the most reliable tool for real estate information…with information input solely by licensed and trained professionals.
Bottom Line? As previously mentioned, this settlement has many moving parts and layers of detail that can’t all be summed up in a bold headline. If you’d like even more information, or would like to personally ask me some questions about this or anything real-estate related, please feel free to contact me directly at 479-879-7006. Happy house-hunting, I’ll still be here to help!