Buyer & Seller Responsibilities Under the New NAR Settlement
A quick guide to how today’s real estate process works.
BUYERS
Must sign a written Buyer Representation Agreement before touring homes Must understand how buyer-agent compensation works Need pre-approval before submitting offers Responsible for property inspections, disclosures review, and loan processing Work with an agent to prepare and negotiate offers
SELLERS
Must sign a Listing Agreement that outlines services & compensation Decide whether to offer buyer-agent compensation (no longer required) Approve marketing strategy, MLS listing, and showing instructions Review and negotiate offers submitted by buyer agents Complete seller disclosures, escrow steps, and move-out requirements
Why This Matters Today
The NAR settlement created a more transparent, agreement-based, and service-driven real estate process for both sides. V Nation helps buyers and sellers navigate this new landscape with clarity and confidence.
Pros:
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No Commission Fees: You save on agent commissions, potentially increasing your profit from the sale.
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Full Control: You have complete control over the sale process, including pricing, marketing, and negotiations.
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Personalized Marketing: You can market your home in a way that reflects your personal style and preferences.
Cons:
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Limited Market Reach: Without access to MLS and professional networks, your home may not reach as many potential buyers.
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Time-Consuming: Managing the sale can be time-consuming, requiring effort in marketing, showings, and negotiations.
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Lack of Expertise: Without an agent's experience, you may miss key insights on pricing, market trends, and negotiations, potentially leading to a lower sale price.
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Legal Risks: Handling contracts and legal obligations without professional guidance can lead to mistakes that could be costly.
Hiring an Agent
The decision between hiring an agent or going FSBO depends on your comfort level with real estate transactions, your financial goals, and the specific market conditions. The new NAR settlement may impact how commissions are structured, potentially affecting both routes. Be sure to consider these factors carefully to choose the best option for your situation.
Pros:
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Market Expertise: Agents have in-depth knowledge of local markets, pricing strategies, and trends.
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Negotiation Skills: Experienced agents can negotiate better terms and prices on your behalf.
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Time-Saving: Agents handle all the details of the sale, including showings, paperwork, and communication with buyers and other agents.
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Access to Resources: Agents have access to a broader network and tools, including MLS listings, marketing resources, and professional contacts (e.g., inspectors, contractors).
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Legal Protection: They can help navigate complex contracts and legal requirements, reducing the risk of mistakes.
Cons:
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Commission Costs: Sellers typically pay a commission (often around 5-6% of the sale price), which reduces net proceeds.
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Less Control: You might have less control over the sale process and how your home is marketed.
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Potential Conflicts of Interest: Depending on the agent’s motivations, there could be a risk of prioritizing their commission over your best interests.