Agents adhere to strict code of ethics, NAR spokesman says
He noted that real estate agents comprising the association’s rank and file are held to a strict code of ethics in performing their work. The National Association of Realtors collects $150 in annual dues from among its robust membership of more than 1.5 million agents. Moreover, he stressed the US Department of Justice (DOJ) was not involved in the scrutiny – countering such claims previously made in media reports.
“Realtors adhere to a strict Code of Ethics and bring incredible expertise to guide consumers through the financial, legal and community complexities of buying or selling a home,” Shaw added. “We are confident we will prevail in proving the lawfulness of the rules being questioned in the trial of Burnett v. NAR, et al. The DOJ is not involved in this matter.”
He expounded on use of the commission-sharing system, noting the percentage is largely market-driven but ultimately negotiable: “Regarding commissions, the market decides compensation rates, and compensation is always negotiable,” Shaw said. “The free market determines broker commission costs through factors like service quality, customer preference and market conditions.”
Shaw added commissions are lower today than they have been in the past: “Historically, real estate commissions have always fluctuated due to the market conditions at a given time,” he said. “In fact, according to Real Trends, who started tracking real estate commissions in 1991, commission rates are currently well below where they were in the ‘90s all while real estate agent value has increased.”
At the end of the day, Shaw suggested, consumers are empowered in dictating the amount to be paid: “Consumers have the choice of who they want to pay and how they want to pay them. Consumers are encouraged to talk to their broker to understand and agree upon how they expect to be compensated. The seller decides what fee they are willing to pay for their broker’s services and how much that listing broker should offer a broker who brings a buyer to close the transaction. Listing brokers have agreements with sellers that spell out how this compensation works.”
Source: mpamag.com