Table of Contents
- Implementing the NAR Lawsuit Changes
- Median Regional Home Prices
- National Average Mortgage Rates
- AgentUp AI Virtual Tours
Fall is here, and with the leaves turning color, let’s take a look at a September real estate update and the new commission structures for real estate agents.
Implementing the NAR Lawsuit Changes: What Do They Mean?
August 2024 saw nationwide changes to real estate agent compensation arrangements.
Earlier this year, the National Association of Realtors (NAR) Settlement was finalized, changing how real estate commissions are negotiated, by whom, and how those commission amounts are communicated.
Before these changes, most MLSs communicated compensation agreements, stating the amount a seller would pay a buyer’s agent who brought them a buyer. In most cases, the listing agent negotiated that commission amount.
Various regional markets have responded to the changes required by the lawsuit by implementing new commission structures and arrangements. Let’s review some of these in more detail.
1) Buyer Agent Compensation Included in Purchase Agreement
Under this model, the buyers’ agent’s commission is included in the purchase agreement as part of the offer. In other words, the buyers’ offer requests that the seller pay the buyer’s agent a stated compensation amount.
This is a return to how many markets across the country traditionally conducted real estate sales before the early 1990s.
In this scenario, the buyers’ agent’s commission is open to negotiation as part of the overall sale.
2) Seller Funded Buyer’s Agent Commission
In this model, the seller agrees to set aside a certain amount of cash or a percentage of the sale before listing their home to compensate the buyer’s agent at closing.
This is how it’s been done up until now. The significant change here will be how this offer of compensation is communicated. We may not use the MLS to communicate any form of agent compensation per the lawsuit.
The likely means of communicating the offer of compensation will be via the broker’s website, email, or telephone communication between the agents.
3) Asking for Seller Concessions
In this third model, the offer for the property includes language asking for seller concessions (money back at closing) to cover the buyers’ agent commission.
Under this model, the concessions are typically funded by the mortgage money. The buyers will offer an amount for the property and ask for a small amount back at closing to pay the buyer’s agent.
Recent mortgage law changes have made this option possible.
It’s important to note that the lawsuit does not mandate a specific commission structure or amount. Real estate agents’ fees remain negotiable between them and their clients.
In the days and months ahead, we will see how these changes play out and which of the above compensation models eventually becomes dominant.
Stay tuned as we watch how the industry responds.
Median Regional Home Prices
As of August 30, 2024 (Zillow)
| City | Median Home Price | Increase / Decrease |
| New York | $760,700 | Up 0.7% from the previous year |
| Chicago | $305,600 | Up 3.8% from the previous year |
| San Diego | $1,028,200 | Up 10.3% from the previous year |
| Seattle | $869,600 | Up 3.8% from the previous year |
| Austin | $539,100 | Down 4.6% from the previous year |
| Denver | $571,100 | Down 0.4% from the previous year |
| Atlanta | $399,200 | Up 1.1% from the previous year |
National Average Mortgage Interest Rates
As of August 30, 2024 (BankRate)
| Mortgage | Current Rate | Last Month |
| 30-year Fixed | 6.43% | 6.93% |
| 20-year Fixed | 6.14% | 6.72% |
| 15-year Fixed | 5.84% | 6.41% |
| 30-year Jumbo | 6.62% | 7.03% |
AgentUp AI Virtual Tours
A virtual house tour lets potential buyers or renters walk through a property on their computer, tablet, or phone any time of day or night.
These tours provide a realistic online experience of any property – and buyers love them, as these statistics indicate:
- Listings marketed with a virtual home tour get 87% more views
- 54% of buyers pass over a house if it doesn’t include a virtual tour
- Virtual tours help listings close 31% quicker than those not featuring a tour
- The key demographic of buyers aged 18 to 34 are 130% more likely to book a showing if there is a virtual tour
Additionally, virtual tours offer the following valuable information to potential buyers:
- The spatial sense of each room and space
- Help to see a room from any angle or perspective
- A clearer sense of the flow of the property from room to room
- Hot spots that make it easy to call out the listing’s best features
Virtual tours are easy to create, and buyers love them, so include one on all your listings to help close more real estate transactions. Sign up for a free AgentUp account today and build a free virtual tour!
Before you go, you may also want to check out the following related resources:
