LPT April Newsletter 2024

Wondering what the National Association of Realtors lawsuit is all about?

This lawsuit, at its core, is about transparency - much like when Buyer Brokerage was created, this agreement will further disclose to all parties in the real estate transaction how agents are being paid for their services and hard work.

Historically, sellers paid their listing broker and also offered compensation to the agent that represents the buyer. The reason for this is that the buyer often uses ALL of their financial resources for their downpayment, to obtain a loan, and to pay all the other expenses associated with a home purchase and may not have the additional resources needed to purchase a home.

In this lawsuit, the plaintiffs, who were home sellers, claimed they had no idea they could make a lesser offer of compensation to the buyer broker than what they were making to their agent. This case creates that clarity for sellers throughout the U.S.

The National Association of Realtors and several other brokerages, including Compass, settled this lawsuit but the court must approve the settlement. This could take months and the terms of the settlement could change.

As part of the settlement agreement, starting in July 2024, NAR-affiliated multiple listing services can no longer list buyer’s brokerage compensation on their listings. Instead, the buyer’s agents will have to contact the listing agent to find out if compensation is being offered and for what amount and then share that information with the buyer. If no compensation or less is being offered, the buyer as part of their offer, could ask the seller to pay their buyer brokerage commission at settlement or if they can, pay the brokerage fee themselves.

Also, real estate agents must fully disclose that commissions are negotiable and not set by law. They are also required to inform their buyer clients that their services are not free and must have a signed Buyer Brokerage Agreement before showing a property. This is something we have been doing in the DMV for many years.

Finally, listings on the MLS cannot be sorted based on the buyer broker commission offered.  Our multiple listing service does not allow this type of sorting so this is not something that was done in our market.  We will always provide our buyer clients with access to all listings that might fit their search criteria and the buyer can decide which properties they want to see or consider.

If you have any questions about this, please let us know. We are always here to help!

JUST LISTED
Open Sunday
1 pm - 3 pm

Deanwood

4430 Foote Street Northeast

3 BD   2 BA   1212 SF   $445,000

A total renovation of this lovely semi-detached home was completed by the sellers in 2021. Enter the home from your spacious front porch into an open-concept first level, boasting beautiful hardwood floors, living, and eating space, and a perfectly designed kitchen. Enjoy access to a private rear deck overlooking your spacious backyard. Upstairs you'll find two bedrooms with wood floors and a full bathroom with a soaking tub. The walk-out lower level includes a second full bath and can be used as a 3rd bedroom, or family room. The home has been freshly painted leaving you with nothing to do but move in! Great location with easy access to 295, downtown DC, two Metros, and shopping!

Office: 202-448-9002

Compass Real Estate is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.