New NAR Rules: Buyer’s Agency and Commissions

What You Need to Know About

Buyer’s Agency and Commissions

The real estate world is buzzing with some fresh changes from the National Association of Realtors (NAR), and as your go-to Kansas City agent, I'm here to break it down for you—no jargon, no bull, just the good stuff. So, what’s the deal with these new rules on buyer’s agency and commissions?

First up, let’s talk about transparency. The new NAR rules are all about making sure you, the buyer, know exactly what you’re getting into when it comes to agent representation and those sometimes mysterious commission fees. Gone are the days of being in the dark about who’s paying what and I certainly hope that I’ve been clear about those fees from the start. Now, everything’s on the table from the get-go, making the home-buying process smoother and more straightforward.

Next, we have the shift in how commissions are handled. In the past, it was common for sellers to cover the commission for both their agent and the buyer’s agent; I believe this is still going to be the case in most scenarios as many Sellers want to maximize the # of potential buyers for their home. However, the new rules give buyers the option to negotiate commissions directly with their agents to what makes most sense for everyone involved if they are paying them on a particular property. This change is designed to empower you with more control over how you want to manage your home-buying expenses (If it falls to you to pay). It’s like ordering à la carte instead of getting the prix fixe menu—you decide what works best for your budget + needs, and I’ll do my best to adapt and cater.

Finally, a quick heads-up: these changes mean it’s more important than ever to have a clear conversation with your agent (that’s me hopefully!) about your expectations and how we’ll work together. Think of it as a team huddle before the big game—we’re setting up the play that’s going to win you your dream home!

Got questions? I’m here to help make sense of it all. Whether you’re ready to dive into the market or just curious about what these changes mean for you (This applies to both Buyers + Sellers), let’s chat and keep things fun & simple. After all, buying a home should be an exciting adventure, not a confusing maze!

At the end of the day, it’s just a conversation that’s had between the client(s) and I. Generally, my fee is 3% of the sales price (If you or whomever would like for me to represent them. Just as an Attorney has their fees, so on and so forth). However, if the commission falls on my client (who is the Buyer) to pay on a particular home that they are interested in vs. the Seller, we figure out how to give them the best shot at getting the home they want while fairly compensating for my time + professional services. Whether it’s purchasing a $10k plot of land or a $1Million+ property, my fiduciary has always been to provide a great experience for my client(s) and assist them in achieving their end goal.

In Simple Terms, Here are the Three Changes:

1. Agents can no longer display in the MLS a commission that the Seller is willing to offer to a Buyer's Agent.
2. The NAR cannot have a written rule that requires the Seller to pay a Buyer's Agent commission.
3. Buyers working with an Agent MUST have a written Buyer's Agency Agreement prior to viewing any home.

I hope this is helpful and wasn't too wordy, but it’s important for you as a consumer to also understand these changes, because knowledge is power and will ultimately help you when the time is right.

-Anthony West