Understanding the NAR Lawsuit

Hello Michiana!

Have you been hearing about this massive national real estate lawsuit that could change the real estate industry forever? I’m Steve Smith of Irish Realty here to keep you up to date on all things Real Estate in South Bend and the surrounding areas. Here’s what you need to know!

A national lawsuit was filed against the National Association of Realtors alleging that they were complicit in price fixing by not allowing buyers to hire and negotiate the commission for their Brokers directly. On March 15, 2024 a settlement was reached for $418 million on this lawsuit and it is going to mean some changes to our industry.

So buyers what does this mean for you? It means that you will now hire your realtor before going to look at properties and before negotiating or making an offer and agree on a commission upfront. This is great news for you with a more transparent and more involved process. Sellers this means that now you will still do much the same thing but when buyers agents bring an offer their commission will need to be known and negotiated like any other term in the offer as part of a deal.

". . .You will now hire your Realtor before going to look at properties and before negotiating or making an offer. "

Gavel Lawsuit NAR

In summary, for the most part this will look pretty much the same in practice once we get going but buyers will be better informed and have more control at the start of the process. What does this mean for Steve Smith – Irish Realty team going forward? Within the next month we will be signing buyer brokerage agreements with all of our clients before continuing to show you properties and help you negotiate to acquire properties going forward. This just means that you’ll be better informed and have more control over the process going forward. You can still expect industry leading service from us and our team as we always put our clients first and look to help you make great decisions in buying your home in South Bend.

Still have questions? Call us to get answers!

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