Real Estate News

To our Clients, Partners and Friends:

You have probably heard the recent news that the National Association of Realtors (NAR) has reached a settlement in the Sitzer /Burnett antitrust case, pending final approval by the court.

The basis of the suit is rooted in the most common way in which residential real estate is transacted, which is sellers hiring an agent to represent their interest for a fee and then offering compensation to an agent who brings the buyer as an inducement to get their home sold.

The results of this settlement will undoubtedly change the residential real estate industry as we know it. Our hope is that it iwll provide an opportunity to further professionalize the industry accross the country to elevate Realtors to standards that our colleagues an I have always held dear.

While we do not know what the changes will bring right now, this is what we do know:

Buyers deserve representation at every income level. This case has called into question the cost of buyer agency compensation and how it is incorporated into the transaction. Our experience has shown that transactions are smoother when there is proper representation on each side, creating open lines of communication and mutual benefits for both Buyer and Seller.

Commissions have always been and will continue to be a transparent conversation with our clients. We have always encouraged a healthy dialogue around compensation for real estate services and will continue to operate as fullservice Realtors.

Pennsylvania is one of only 14 states that require a buyer to sign a Buyer Agency Agreement, and has since the 1990's. As we understand it, this settlement will require that every Buyer sign a Buyer Agency Agreement outlining the relationship between the Buyer and the Buyer Broker before touring a property. This has been our standard practice in Pennsylvania for over 30 years, making us a model for many.

This is a relationship based business, and together, we will navigate the changes in the industry and provide all clients with the same standards of excellence that we have prided ourselves on.

FACT OR FICTION

What's Real About the Recent Real Estate Headlines?

FICTION: The 6% commission on buying or selling a home is gone: FACT:

Commissions have always been negotiable in real estate transactions. Listing agents and sellers can continue to offer compensation outside of the National Association of REALTORS^® affiliated MLSs.
FICTION: Sellers no longer need to compensate buyer's agents: FACT:

Offering buyer agent compensation or concessions is a choice made by a seller in consultation with their listing agent. The commissions have always been negotiable.
FICTION: Buyers no longer need a buyer's agent: FACT:

Buyers are best protected by professional real estate agents. When making one of the most significant financial transactions of their lifetime, buyers deserve a trusted advisor to guide them through the process and represent their interests.
FICTION: The settlement will change the way Americans buy and sell homes: FACT:

Real estate professionals will continue to help buyers and sellers navigate one of the most costly and complex transactions of their lives.
FICTION: Sellers are now prohibited from offering buyer's compensation: FACT:

Offering a buyer's agent commission ahs always been up to the seller. Sellers can continue to offer compensation to buyer's agents if they believe it will lead to the best outcome for the sale of their property.