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Blog posted On April 15, 2024
Earlier today, Fannie Mae and Freddie Mac clarified questions about the payment of real estate agent commissions. These questions were brought up shortly after the nationwide settlement agreement proposed by the National Association of REALTORS® (NAR). The updates are largely aligned with the previous statement that the FHA published on March 28, 2024, which confirmed that there will be no changes to seller-paid buyer agent fees at this time.
Commission Policy Updates
Under the existing Fannie Mae and Freddie Mac policies, the buyer agent fees, which have customarily been paid by the property seller or seller’s real estate agent, are not subject to financing concession limits. If these fees continue to be paid by the property seller, they will not be subject to financing concession limits.
NAR Settlement Recap
The National Association of Realtors (NAR) recently made a significant settlement agreement to help increase transparency in the real estate industry. Here’s the gist:
What the SETTLEMENT means for YOU
Once the Association and MLS start prohibiting the advertisement of commissions on the MLS, you’ll likely have more flexibility to pay for the services you want and avoid paying for those you don’t need. With the written agreement, you will know an agent’s fees and services before moving forward with any work. You could pay for an ‘on-demand’ showing, and/or just negotiations, and/or other services.
Why you should always use an agent!
The settlement still must be approved by a judge, and we’ll keep you updated with any developing news. We’re committed to helping you in any way we can! Whether you have questions about the settlement, are looking for a reputable agent, or want to explore your options, let us know.
Sources: NAR, U.S. World and News