The National Association of Real Estate Brokers (NAREB) said Monday that it is in the process of preparing its members for the change in how the compensation system works.
Last week, the National Association of Realtors settled a Missouri lawsuit challenging the decades-old system requiring the agents of home sellers to split the commission on sales with the agents of home buyers. Most commissions range between 5% and 6% of home sale prices.
Under the settlement, home sellers and their agents can no longer outline compensation for agents, representing buyers within their MLS listings. They can, however, negotiate outside of the official listing.
NAREB President Dr. Courtney Johnson Rose acknowledged that many NAREB members may be affected by the commission changes because the majority are usually buyer’s agents.
“NAREB recognizes that this settlement, if approved by the judge, will bring dramatic changes to our industry,” Rose said. “Our members often represent Black families and individuals who struggle to raise money for the down payments needed to purchase homes due to decades of discrimination and a lack of generation wealth. Paying the commission for their agent will be an added burden. NAREB will help our members navigate these changes and continue to create avenues for them to thrive and help Black consumers achieve the dream of home ownership.”
NAREB has taken the following steps to address the changes the lawsuit has wrought.
*Created a special task force that will study the projected impact of the settlement on its members and the Black community.
*Developing a Realtist Toolkit for NAREB members that will include the most relevant information and access to resources that can assist them.
*Scaling up the NAREB Black Developer Academy, which was launched this year.
*Leveraging the 100-city NAREB Building Black Wealth Tour and the NAREB National Building Black Wealth Day on April 13 to strengthen the connection between our members and the communities that they serve.
“NAREB is prepared to lead in this changing environment and ensure that our members, Realtists, are strong and remain valuable assets in communities,” Rose said.
