If you’ve been following real estate news lately, you’ve probably heard about the recent National Association of REALTORS® (NAR) settlement. These changes are designed to give buyers more choice, clarity, and transparency in the homebuying process. But what does that really mean if you’re looking to buy a home in the Prescott area? Let’s break it down in simple terms.
Written Agreements Are Now Required
One of the biggest changes is that buyers must now sign a written agreement with their agent before touring homes - whether in person or through a live virtual showing.
This agreement ensures that you and your agent are on the same page about:
- The services your agent will provide.
- How much (and how) your agent will be compensated.
- Who will be paying that compensation.
Think of it as setting clear expectations upfront, so there are no surprises later in the process.
What’s in the Agreement?
The new buyer agreements are required to include a few key points:
- Compensation disclosure – The exact amount or rate your agent will receive (for example, a flat fee, a percentage, or an hourly rate).
- No open-ended terms – The agreement can’t just say “whatever the seller offers.” It must state a clear amount or formula.
- No double-dipping – Your agent cannot accept more than what you’ve agreed to in writing.
- Transparency – A clear statement that commissions are fully negotiable and not set by law.
Bottom line: You’re in control of what you’re paying and what you’re getting in return.
Do Sellers Still Contribute?
Yes! Sellers can still offer compensation to your agent, but that offer cannot be listed on the MLS (the Multiple Listing Service agents use to market homes). Instead, your agent may share this information through other advertising or in discussions with you.
Also, sellers can still provide buyer concessions, like helping cover your closing costs. This flexibility can make purchasing a home more affordable for buyers.
Why This Matters for You
These changes are ultimately about empowering you as the buyer. You now have:
- More control over how you work with your agent.
- Greater clarity on what you’re paying and why.
- The ability to negotiate services and fees that fit your needs.
It also means it’s more important than ever to choose an experienced REALTOR® you trust. An agent who understands the local market, advocates for your best interests, and is transparent about their services can make all the difference in your homebuying journey.
Final Thoughts
Buying a home is one of the biggest financial decisions most people will ever make. With these new rules in place, buyers have more freedom - but also more responsibility to understand their agreements and ask the right questions.
At Romney 4 Realty, we welcome these changes. We’ve always believed in honesty, integrity, and clear communication, and this new process reflects exactly that. If you’re considering buying real estate property in the Prescott area, we’d be happy to walk you through the details, answer your questions, and help you navigate the homebuying process with confidence. Contact us today!
