NAR believes that they reached an outcome which is not supported by the law, or the facts presented in the case and plans to appeal.  Among other points, NAR’s rule does not specify any compensation amount that should be offered.  NAR has always said it could be any amount – as low as a penny. When asked this past summer if compensation could be zero, NAR advised that is a legal amount.

In fact, the MLS handbook and NAR policy expressly prohibit MLSs, associations, and brokers from setting or suggesting any such amount that should be included in that field. Compensation is always negotiable. It is not a set amount, but rather determined by the listing broker and their client.

NAR stands by the benefits of cooperative compensation – the practice of a listing broker making an offer of compensation to buyer brokers who bring a successful buyer to the transaction.  The cooperative compensation practice makes efficient, transparent, and accessible marketplaces possible.

Cooperative compensation benefits sellers and buyers. Sellers can attract better qualified buyers for their home, which means they increase their chances of generating the best possible offer. Buyers benefit by having more choices of homes and easier financial access to professional representation to help them navigate through what, for many, will be the most significant financial transaction of their lifetime.

Without cooperative compensation, many first-time home buyers and lower-income buyers likely won’t be able to afford to pay for representation out of pocket.  Military veterans would also be disadvantaged if listing brokers are prohibited from paying buyer brokers, as the terms of VA loans prevent veterans from making such payment themselves.

REALTORS® know that MLS policies and rules have benefited buyers and sellers for more than 100 years.

The next step is filing an appeal to the verdict. This is just the first step in a longer legal process.  In terms of timing, both sides will file briefs with the trail court in the next few months.  The appeal is expected to be briefed and argued later in 2024.

As a reminder, this verdict and other pending actions do not change the many choices buyers and sellers have when deciding to buy or sell their home.  They can choose to hire a real estate agent—who is a REALTOR®, someone else, or do all the work themselves.

What can you do?

Continue explaining to consumers the choices they have when it comes to representation during the home buying process and articulate the value you will bring to their experience.

Continue expressing to clients, friends, and family that compensation arrangements (including commissions) are, and have always been, negotiable and set between a broker and their respective client.

Continue to use your listing and buyer agreements to help clients understand:

1) exactly what services and value you are providing; and

2) importantly, how much you charge.

Continue explaining that listing brokers decide how much compensation to offer in their seller’s best interest – that it can be $0 (depending on your MLS rules), a penny, or any other amount.  This is negotiated between brokers and their clients.

Reiterate that REALTORS® are still and will always be there for clients to guide them through the financial, legal, and community complexities of buying and selling a home, protecting, and promoting their best interest.

What resources are available?

Competition.realtor is NAR’s website containing all information on the lawsuit, consumer testimonials and content you can share on over 200 ways you are worth every penny of compensation, the economics of buying a home, and a fabulous CNBC interview with NAR President, Tracy Kasper.

We know that no matter what occurs with any lawsuits that are being filed, we are REALTOR® strong and will prevail.  Who knows exactly what the future holds. Perhaps nothing changes, or maybe the way you do business does change; but you will always be needed for a fair and equitable marketplace.

Happy New Year & Cheers to a successful year to you all!

Cindi Siggs, RCE, e-PRO

Chief Executive Officer