Understanding the NAR Settlement

What it Means for Homebuyers on Hawai’i Island

As an experienced real estate Broker, I understand that buying a home is one of the largest financial commitments you’ll make in your lifetime. In response to confusion in the recent National Association of Realtors (NAR) settlement and changes to how real estate commission will be handled, I will break down what this means for your home-buying journey.

First and foremost, you will now sign a Buyer Representation Contract with your agent before touring any homes. Compensation details must be crystal clear. No more vague terms – we’re talking specific numbers or rates. This document should reflect the negotiated terms and clearly outline the services provided. The agreement includes specific details about agent compensation, making it objective and transparent.

Additionally, if you want to see a house in-person or via a virtual home tour, your agent will ask you to sign that contract prior to show you anything. However you won’t need to sign a Buyer Representation Contract if you decide to stop by an Open House.

Importantly, one of the more controversial aspects of the settlement is the removal of commission information from Multiple Listing Services (MLS). Previously, MLS listings would show how much a buyer agent could expect to be paid. Now, offers of compensation will no longer be displayed on the MLS. Sellers still have the option to offer compensation to buyer agents, though this must be done outside the MLS system.

Remember, your agent, especially if they are a REALTOR®, is committed to advocating for your best interests. Compensation remains fully negotiable, so don’t hesitate to ask questions. I’m here to clear up confusion over commission changes. Buying a home in Hawai’i is about more than just a transaction – it’s a big decision and I will be there every step of the way to help you through the process. I am a phone call away! So, let’s talk story, understand your needs, and make Waikoloa your home. Happy house hunting!