NAR settlement could make changes to how homes are bought or sold

TULSA, Okla. — The National Association of Realtors (NAR) multimillion dollar settlement has people talking, and they could be making a couple changes to how real estate is done.

"I will just say there are still a lot of questions on how we handle certain buyers and criteria, all that will be answered in the next few months when the settlement is finally approved" said Bryan Sheppard, CEO and president of Coldwell Banker.

Sheppard said the NAR settlement is not as dramatic as people think it is.

"The NAR settlement doesn't the change the way we do this completely," Sheppard said.

Sheppard said now, people that want to use an agent to buy a home will have to sign a buyer-broker release.

"Number one buyers are going to be required to sign a buyer-broker agreement," Sheppard said.

This will guarantee real estate agents get paid, so if you buy a house where the seller isn't offering split compensation, you will have to pay your realtor or negotiate for the seller to pay their commission.

"My prediction is most sellers are still going to pay compensation for the buyer's agent so that the buyer has representation buying a home," Sheppard said.

Sheppard said people need to remember commissions have always been negotiable, that part isn't new. Sheppard said the problem will come if a buyer isn't able to pay their agent.

"Buyers who can afford representation aren't going to have a problem, buyers who can’t afford or pay for compensation are going to be the ones hurt most with this settlement," Sheppard said.

And if you want to sell your house without offering a split commission, Sheppard said you may have a smaller pool of people interested.

The second change will mainly impact and make more work for real estate agents, because whether or not the seller is offering compensation for the buyer’s agent will no longer be displayed on the MLS.

"In the past the seller has offered offers of compensation to a buyer-broker and it’s been displayed in our MLS as part of the NAR settlement the display goes away," Sheppard said.

But Sheppard said, when it comes to Tulsa, he doesn't think this will impact the housing market too much.

"The housing market has not changed completely, first off this settlement is proposed, it hasn't been approved by the courts so there are no rule changes in place yet," Sheppard said.

To read more about the settlement, click here .