Understanding the NAR Settlement | Farmington, NM Real Estate Guide

If you’ve been following the news about the National Association of Realtors (NAR) settlement, you might have seen a lot of confusing headlines. Let’s break down what this really means for home buyers and sellers in Farmington, NM, and how it changes the real estate landscape.

Decoupling Broker Commissions: The Big Change

The recent NAR settlement decouples the listing broker’s commission from the buyer’s broker commission. In simpler terms, this change makes the buyer’s broker commission a negotiable part of the deal. Previously, these commissions were bundled together, but now, they are separate and open to negotiation.

How Does This Impact Farmington, NM Home Buyers and Sellers?

Starting August 17, 2024, buyers looking at homes in Farmington, NM, will need to sign an agreement with a buyer’s broker before touring most properties (except for open houses). This is a nationwide shift but will have direct implications for how real estate transactions happen locally.

What’s Different Now?

In the past, listing brokers would charge a commission, and that amount was split between them and the buyer’s broker. Essentially, the seller paid the listing broker, who then compensated the buyer’s broker. With the new changes, that system is no longer allowed.

In Farmington, NM, sellers can still choose to compensate the buyer’s broker, but it’s now a more transparent and negotiable process. As a buyer, it’s crucial to understand that before you visit a property with a broker, you’ll need to have a signed agreement in place and you'll want to be careful who you are signing with. 

Navigating the New Real Estate Rules in Farmington, NM

If you’re buying or selling a home in Farmington, NM, understanding how these changes affect you is key. For buyers, being clear on the terms of your agreement with a broker is essential before stepping into any property reach out to us! We’re here to help you understand your options and guide you through this updated process.