The association further highlighted the potential benefits of offering compensation to buyer brokers. NAR argued this practice increases homeownership opportunities, particularly for first-time buyers, by making representation more accessible.
It said the CFA’s suggestion of placing the onus on buyers to request compensation from sellers would put them at a disadvantage, especially in competitive markets where multiple offers are on the table.
“The ability for listing brokers to make an offer of compensation to a buyer broker has significant implications for buyers who struggle to come up with cash to make it to the closing table,” NAR said. “CFA’s proposal would put an additional strain on their finances, resulting in these buyers sitting out of the housing market or going through the biggest transaction of their lives without professional representation. The CFA’s other suggestion, that buyers bid up the home price in order to win a concession from seller, will have the perverse effect of driving up home prices in the midst of a housing shortage and historic affordability crisis.
“Ahead of the August 17 practice change implementation date, NAR encourages associations and other form providers to address form updates early and educate real estate professionals to ensure they can confidently engage with consumers about what the practice changes and form agreements mean for consumers. To be clear, NAR opposes any attempts to circumvent the settlement: members and associations must implement the practice changes fully and in good faith, doing so with the goal of promoting consumer empowerment, consumer choice, and healthy competition.”
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