FAQ General Real Estate Questions

A REALTOR® is a licensed real estate professional who helps clients buy, sell, or rent properties while adhering to a strict code of ethics set by the National Association of REALTORS®. Unlike general real estate agents, REALTORS® are committed to upholding high standards of honesty and integrity in all transactions. They guide clients through the entire real estate process—from pricing and marketing a home to negotiating offers and managing paperwork—ensuring a smoother, more informed experience. Their local market expertise, negotiation skills, and professional network make them a valuable resource for both buyers and sellers.

Choosing the right REALTOR® is crucial to a successful real estate experience, and it starts with finding someone who combines deep local knowledge, strong communication, and proven results—like REALTOR® John Keller. A great agent should understand your goals, explain the process clearly, and have a track record of satisfied clients. John Keller stands out by offering personalized service, expert negotiation skills, and a commitment to putting clients first, whether you’re buying your first home or selling a luxury property. Look for someone like John, who not only knows the market inside and out but also earns your trust every step of the way.

Real estate commissions are typically paid by the home seller and are split between the listing agent (who represents the seller) and the buyer’s agent. The total commission is usually a percentage of the final sale price—commonly around 2% to 6%—and is agreed upon in the listing agreement. For example, if a home sells for $400,000 with a 5% commission, $20,000 would be divided between the agents’ brokerages, and then each agent receives a portion of that based on their agreement with their brokerage. While commissions are negotiable, they are generally only paid upon successful closing of the transaction.

The NAR (National Association of REALTORS®) settlement agreement, finalized in 2024, significantly impacted how real estate commissions are disclosed and negotiated. Under the new rules, commissions are no longer automatically shared through MLS listings, and buyer agents must now enter into written agreements with their clients before showing properties. This change increases transparency, allowing buyers and sellers to negotiate agent compensation more openly rather than relying on standard commission splits. The goal is to foster more competition, potentially reduce commission costs, and give consumers greater control over how and what they pay for real estate services.

A buyer’s agent represents the interests of the homebuyer in a real estate transaction, helping them find suitable properties, negotiate offers, and navigate inspections and contracts, all while working to secure the best possible deal. In contrast, a seller’s agent—also known as a listing agent—represents the homeowner looking to sell, assisting with pricing, marketing, showings, and negotiations to get the highest return. Both agents owe their clients loyalty, confidentiality, and advocacy, but their responsibilities differ based on who they represent in the transaction.

Summary:

The NAR Settlement Agreement is a significant shift in how U.S. real estate commissions work. It:

• Ends the practice of displaying buyer agent commissions on MLS listings,

• Requires formal buyer-agent agreements before showing properties

• Opens the door for more competitive, transparent pricing in real estate.

• NAR settlement agreement FAQs

For Sale By Owner (FSBO) homes often sell for less money than those listed on the Multiple Listing Service (MLS) for several key reasons:

1. Limited Exposure

• MLS = Maximum Visibility: The MLS syndicates listings to hundreds of websites (Zillow, Realtor.com, Redfin), reaching both buyers and agents.

• FSBO = Restricted Audience: Most FSBOs are only seen on a few platforms. Fewer eyes means fewer offers — and less competition means lower sale prices.

2. Lack of Pricing Expertise

• Agents Use Data: Realtors use recent comps, market trends, and appraisal techniques to price homes competitively and accurately.

• FSBOs Often Misprice: Many owners price emotionally — either too high (which turns buyers off) or too low (leaving money on the table).

3. Weaker Negotiation Skills

• Agents Negotiate for a Living: They know how to counter, handle inspection requests, and push for higher offers.

• FSBO Sellers May Settle: Without experience, owners may accept early low offers or fail to push back effectively.

4. Buyers Expect Discounts

• Perception of Bargain: Many buyers approach FSBOs expecting to get a “deal” since there’s no agent involved.

• Buyer’s Agent Still Involved: Even in FSBOs, buyers often have an agent — and they’ll still expect their commission, eating into seller profits.

5. Limited Legal and Contract Knowledge

• Risk of Errors: FSBO sellers might overlook legal disclosures or contract terms, opening themselves up to renegotiations or lawsuits.

• Deals Fall Through: Without professional oversight, FSBO transactions are more likely to collapse before closing.

Data to Back It Up:

According to the National Association of Realtors (NAR):

• FSBO homes typically sell for 12–18% less than agent-listed homes.

• In 2023, the median FSBO home sold for $310,000 compared to $405,000 for agent-assisted homes.