If you are about to sell your house in Minneapolis using a for sale by owner strategy, then you need to stay on top of the latest developments and changes in the real estate industry. One of the key points to familiarize yourself with is the lawsuit settlement by the National Association of Realtors (NAR), which resulted in a new set of rules that could impact future real estate transactions.
The settlement
On March 18, 2024, the NAR decided to settle a lawsuit by agreeing to pay $418 million in damages. As part of the settlement, two new rules were introduced that affect both buyers and sellers.
- Real estate agents representing buyers are now required to present a formal agreement. This agreement is designed to clearly explain the buying process to the clients and disclose the fees that the agents will charge for their services.
This change is expected to have minimal impact on Minnesotans opting to sell their homes in Minneapolis through the for sale by owner route, primarily because FSBO transactions typically do not involve buyer’s agents who would be affected by this new requirement.
- The NAR settlement also affects how commissions are displayed and negotiated. Traditionally, when a seller listed their home for sale, they would work with a real estate agent who would include a set commission for the buyer’s agent in the MLS listing. This commission was typically split between the seller’s agent and the buyer’s agent.
This practice had some drawbacks. Some argue it incentivized buyer’s agents to only show homes with higher commissions, potentially limiting buyer options. Others believe it encouraged sellers to set unrealistic asking prices to accommodate the commission.
The new agreement brings more flexibility. Realtors are no longer required to display the commission split on the MLS listing in MN. This opens the door for more direct negotiation between agents, sellers, and buyers. The seller might pay a lower commission upfront, or the commission might be shared differently between the buyer’s and seller’s agents.
No worries on our part
Here at Real Estate Corners, we still follow the NAR rules while ensuring our clients still have control over selling their homes in Minneapolis through for sale by owner. Our flat-fee MLS service and FSBO package are still affordable. If you choose our full representation service, you get the same advantages, too.
So, if you’re selling your home, don’t hesitate to call us at (612) 483-1230. We’ll provide all the support you need to succeed without shortchanging you.
