Standing Strong After the NAR Settlement: Protect Your Business with Custom Real Estate Sign Riders
The Rules in Residential Real Estate Changed on August 17th, 2024
The historic NAR (National Association of Realtors) settlement on August 17th, 2024, has sparked significant discussion among real estate agents regarding fair compensation for their services. While the settlement offers some clarity, navigating fee negotiation can still be a complex process.
The Power of Visibility
One way to empower yourself in this evolving landscape is by leveraging the power of visible communication. Custom real estate sign riders offer a strategic opportunity to clearly convey your value proposition and promote transparency around fees.
Oakley Signs: Your Custom Rider Partner
Oakley Signs understands the unique challenges faced by real estate professionals. That's why we offer a range of customizable sign riders designed to address the post-NAR settlement environment.
Highlighting Oakley Sign Riders
Here are some of our rider messages that can help you confidently communicate your worth:
- “Buyer’s Best Friend”
- “Buyer Agent Friendly”
- “Empowering You: Transparent Pricing & Unbiased Service”
- “Dedicated To You: Personalized Service In A Changing Industry”
Oakley Signs goes beyond pre-made riders. We encourage you to work with our design team to create custom messaging that perfectly aligns with your brand and value proposition.
By utilizing custom real estate sign riders from Oakley Signs, you can effectively communicate your post-NAR stance, promote fee transparency, and send a clear message to clients about the value you deliver.
Visit Oakley Signs today to browse our NAR protection rider options or contact us to discuss a custom design solution for your real estate business.
Here’s a Recap of the NAR Settlement
Allegations
The National Association of Realtors (NAR) faced multiple class-action lawsuits regarding its commission practices. The lawsuits allege that NAR's rule, requiring home sellers to offer a commission to the buyer's broker as a condition of listing their property on Multiple Listing Services (MLS), inflates costs and restricts competition.
The Claims
The lawsuits allege this commission-sharing practice violates antitrust laws by creating an unfair market, which in turn keeps commission rates artificially high.
Sitzer/Burnett
The most significant class-action case was Sitzer/Burnett, filed in a Missouri federal court. The plaintiffs were a group of home sellers, and the defendants included NAR and several major real estate brokerages such as Keller Williams, RE/MAX, and Anywhere Real Estate (owners of Century 21 and Coldwell Banker).
The Settlement
On April 24th, 2024, a federal judge in Missouri granted preliminary approval of NAR's antitrust settlement of commission lawsuits. As a result of the settlement, several "practice changes" will take effect on August 17th, 2024.
New Rule: Compensation Field Removal
The MLS is no longer allowed to display a "compensation field". Instead, a new optional field called "Seller Concessions Offered" allows the seller to advertise specific concessions that the buyer can use, including to pay their agent. Listing agents can still advertise cooperating compensation on their brokerage website, social media, and direct communication.
New Rules Affecting Sellers
Before touring a house, the buyer and agent must sign a "Buyer Representation Agreement" that outlines the compensation owed to the buyer's agent, irrespective of the seller's offer. This agreement must specify a fixed dollar amount or percentage, and not rely on "whatever the seller is willing to offer". Virtual tours also require this agreement.
If a buyer is not comfortable signing this agreement, their only option would be to go to open houses or call the listing agent to see if they will show them the home.
Ready to elevate your real estate business? Visit Oakley Signs today to explore our wide range of custom sign rider options. Our expert team can help you create messaging that resonates with your target audience and sets you apart. Contact us now to schedule a consultation and start building your brand.