With Q1 officially under our belt, the 2024 Charlotte real estate market hasn’t proved to differ much from recent years. Buyers are still competing over low inventory, prices are still rising, and interest rates continue to create some affordibility challenges. Here are the most recent local stats:
After what seems like the same song and dance for a few years now, you are likely well versed on current market conditions so I wanted to instead use this market update to provide you with some added information on an industry topic that is getting a lot of a press these days… the National Association of Realtors (NAR) lawsuit settlement.
Last month, NAR agreed to a $418 million settlement to eliminate claims on decade-old commission rules in the MLS. With this new settlement, pending court approval, sellers and their agents will no longer be able to list any offered buyer’s agent compensation within the MLS starting in July 2024. The goal is to make it easier for buyers to negotiate their own fees.
This will impact some markets more than others because of real estate laws and practices that vary from state to state. Here in North Carolina, we are already in a good position and won’t see radical changes. We have always had Buyer Agency Agreements, which spell out agent compensation. These agreements are reviewed, negotiated, and signed by buyers prior to any offer being submitted by an agent on behalf of their clients. This agreement, which doesn’t currently exist in all states, is a mandatory document per our North Carolina Real Estate Commission.
To clarify, sellers are still allowed to offer compensation to buyer’s agents. There has been a lot of misinformation out there about this fact. Sellers offer compensation as a selling and marketing tool to have buyer’s agents bring their clients and aid in selling their home. A seller’s ability to offer buyer agent compensation is not changing; only that the compensation can no longer be listed in MLS is changing. As a result, we anticipate that agent compensation will most likely become a part of each transaction’s Offer to Purchase and Contract that all parties (buyers, sellers, and their respective agents) sign off on and agree to during negotiations.
Every client has a choice just as every agent has a fee. Buyer agency compensation has always been a part of my team’s conversations with both sellers and buyers. Rest assured that it will continue to be. As laws and policies evolve, my team and I are prepared to guide you through your options and help you navigate the real process as we always have.
Have any questions on the NAR settlement, potential industry changes, or the current market? Give us a shout!
— Genevieve
Cover Photo: The 5 and 2 Project
