In recent media coverage, misconceptions have arisen regarding commission rates and MLS policies, leading the National Association of REALTORS® (NAR) to offer comprehensive insights that extend beyond mere clarification. This article not only dispels these misconceptions but also delves into related topics such as NAR’s response to President Biden’s remarks on lowering housing costs and the recent legal settlement to address nationwide claims by home sellers.

Contrary to the misrepresentation suggesting a standard 6% commission rate mandated by NAR, the association emphasizes that commission rates are negotiable between brokers and clients. NAR’s recent litigation involving a rule on communicating compensation offers via the Multiple Listing Service (MLS) aimed at enhancing transparency rather than dictating specific commission rates.

Moreover, NAR’s response to President Biden’s remarks highlights the market-driven nature of commission rates and stresses that commissions were negotiable even before a recent settlement agreement. This clarification is essential, especially in understanding that commission rates are not the primary cause of housing affordability challenges. NAR advocates for an “all of government” approach to address inventory shortages and make homeownership more accessible.

Additionally, NAR’s recent legal settlement to resolve nationwide claims by home sellers marks a significant step in addressing legal challenges related to the MLS cooperative compensation model rule. This landmark agreement involves over one million NAR members, state/territorial and local REALTOR® associations, association-owned MLSs, and brokerages with NAR members as principals. The settlement not only includes a financial payment but also implements a new MLS rule prohibiting offers of broker compensation on the MLS, effective mid-July 2024.

In conclusion, NAR’s insights provide a holistic view of the real estate landscape, encompassing discussions on commission rates, housing affordability, and legal settlements. By dispelling misconceptions and addressing key industry challenges, NAR continues to advocate for transparency, fairness, and professionalism within the real estate market.