How NAR Lawsuit Impacts Buyers and Sellers

Transparency in Fees: What Sellers Should Know

In the past, when sellers would meet with real estate agents, the conversation about fees was often straightforward: the agent would say, “Here’s my fee, and I’ll pay the buyer’s agent from it.” However, recent changes, influenced by the Department of Justice (DOJ) and the National Association of Realtors (NAR) lawsuits, mean this structure has evolved.

Now, as a seller, you’ll be having a different conversation with your agent. Instead of the agent paying the buyer’s agent from their commission, you’ll be responsible for paying each party directly. This shift in how fees are disclosed provides more clarity. You'll know exactly what you're paying for, including what services the agent will deliver and potential costs related to buyer representation.

The Importance of Buyer Representation

There’s been a lot of talk recently about the necessity of a buyer’s agent. Some news outlets even suggest that buyers may no longer need an agent, but we see things differently. While it’s true that you can technically represent yourself in a transaction, just like in legal matters, having a professional by your side is invaluable.

Buying a home is one of the biggest investments most people will ever make. An experienced buyer’s agent knows how to identify potential problems in a property (e.g., a pipe belly), negotiate on your behalf, and protect your interests throughout the process. Our top priority at The Knight Group is not just to sell you a home—it’s to ensure that you don’t lose money in the process. That’s why we focus on helping you make a smart purchase, protecting your earnest money, and ensuring everything goes smoothly.

The Risks of Going Solo

One of the major concerns we have with buyers or sellers trying to handle transactions on their own is the risk of making costly mistakes. Without the guidance of a knowledgeable agent, the chances of losing earnest money or even ending up in a lawsuit increase significantly. This is true for both buyers and sellers.

For sellers, it’s not just about getting the best price for your home; it’s about navigating the complexities of marketing, negotiations, and legalities to make sure the deal closes smoothly. Without an agent, deals are more likely to fall through or lead to disputes.

Why You Need an Agent on Your Side

Whether you’re buying or selling, having a real estate agent is about more than just the transaction. It’s about peace of mind. Our job is to make sure you’re protected, that your money is safe, and that you’re getting the best possible outcome. At The Knight Group, we pride ourselves on guiding our clients through every step of the process, ensuring they avoid costly pitfalls and legal troubles.

If you’re thinking about buying or selling a home, or you know someone who is, we’d love to help. Give us a call—we’re here to provide the support and expertise you need.