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Jeremy Crawford, president and CEO of FMLS, joins host Carol Morgan for this week’s Atlanta Real Estate Forum Radio episode. In this podcast segment, Crawford discusses what the NAR settlement means for homebuyers.
What is the NAR Settlement?
According to the recent NAR settlement, Realtors, brokerages and other members of the National Association of Realtors (NAR) owned or affiliated MLSs must establish a clear buyer agency agreement before the buyer agency can show a home to a consumer. This practice has been present in the state of Georgia since 1991. However, nationwide it’s a large part of the settlement. As responsibilities shift to Realtor-owned MLSs, the pressure is on to enforce compliance as the housing market continues to grow.
Considering these changes, FMLS has taken a position of consumer transparency. Its fields remain available and serve as offers of compensation from the seller to the buyer agency. These fields are optional, putting the decision to accept or pass at agents’ fingertips.
“FMLS does not arbitrate, mediate or get involved in the offer of compensation,” said Crawford. “We provide fields in the database for the listings that the agents can use at their discretion.”
The NAR Settlement from the Buyer Perspective
The NAR settlement added new challenges to the home buying process, affecting agents, buyers and brokers. As of August 2024, MLSs involved with NAR cannot put offers of compensation on multiple listing sites nor advertise that information. This update makes it difficult for brokers and agents to access crucial information for their clients and causes buyers’ costs to rise as well.
“The entire process for buying a home now is a little more complicated,” said Crawford. “It may be more expensive for the down payment and closing perspective for the buyers and less transparent, because they can’t find the information on the Internet as easily as they could.”
Buyers are expected to pay for their own representation now, which has created a shift toward home shoppers trying to browse on their own. Professional guidance is important during the homebuying process. There are many factors that often get overlooked without a trained eye, such as location, school districts, flood risk in certain areas, zoning, etc.
What about home builders’ ever-changing commission and compensation packages? Crawford notes that many agents are still engaging and writing up buyer-agency agreements with clients.
“We now have many of the top builders in Atlanta or FMLS broker members – Toll Brothers, DR Horton, etc. – they’re all FMLS broker members,” said Crawford. “Their listings are within FMLS, and they provide some level of offer of compensation to those agents who have a buyer community that would have interest and bring them a buyer. And I think the process there is still going to be the same for the builders. They’re still going to offer opportunities for the buyer and the buyer agency who brings the buyer in.”
Tune in to the full interview above to learn more about FMLS or visit ww.FirstMLS.com.
About FMLS
FMLS is the fourth largest multiple listing (MLS) service in the nation. Since 1957, it has served over 57,000 real estate professionals, including agents, appraisers, brokers and home inspectors. FMLS is privately owned and not affiliated with the National Association of Realtors.
Crawford said, “Our mission is really to help brokers and agents transact real estate so they can fulfill the American dream of home ownership for their clients, be it buyer or seller.”
A special thank you to Denim Marketing for sponsoring Atlanta Real Estate Forum Radio. Known as a trendsetter, Denim Marketing has been blogging since 2006 and podcasting since 2011. It is currently working on strategies for the Google Helpful Content update and ways to incorporate AI into sales and marketing. Contact them when you need quality, original content for social media, public relations, blogging, email marketing and promotions. A comfortable fit for companies of all shapes and sizes, Denim Marketing understands marketing strategies are not one-size-fits-all. The agency works with your company to create a perfectly tailored marketing strategy that will adhere to your specific needs and niche. Try Denim Marketing on for size by calling 770-383-3360 or by visiting www.DenimMarketing.com.
The Atlanta Real Estate Forum Radio “All About Real Estate” segment, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.
