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Understanding the

NAR Lawsuit Settlement

What You Need to Know

In March 2024, in response to a pending lawsuit judgment against them, the National Association of Realtors® released a set of proposed policy and practice changes that will reframe the relationship between real estate professionals and buyers. To be clear, the industry’s fiduciary commitment to the best interests of clients hasn’t changed, but the way agents and buyer clients formalize professional relationships will.

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Changes to the Homebuying Experience

As a homebuyer, this proposed settlement means there will be some changes to your real estate experience:

1. Required Buyer Agreements

Prior to this settlement proposal, it was acceptable (though not widely practiced) for buyer’s agents to forge relatively informal, unwritten agreements with their clients regarding service. Following these proposed changes, buyers must sign a service agreement with a real estate professional in order to be shown homes. 

2. Buyer’s Agent Compensation

Prior to the proposed changes in the settlement, buyer’s agents were compensated via a cooperation agreement with the seller and seller’s agent facilitated by the multiple listing service. While this sort of cooperation is still allowed, the MLS is no longer allowed to coordinate it. Buyer’s agents will now be responsible for negotiating their own compensation with clients.

FAQ

As a homebuyer, these changes will require new, important conversations between you and your real estate professional. A buyer service agreement will formalize your agent’s fiduciary responsibility to you, further protecting your interests. It will allow the opportunity for real, transparent communication with your agent around compensation, offering you a clear understanding of the cost of services and how those services benefit you. 

These conversations will ultimately set buyers up for greater success in their transactions. More buyers will start the home search process with a clear understanding of their strategy, how their agent will support them, and what it will take to get to the closing table. 

Two major changes: First, compensation offers to buyer’s agents will no longer be displayed on the MLS, and the MLS won’t be allowed to facilitate commission cooperation between the buy and sell sides of transactions. Second, all buyers will be required to sign a buyer agreement with their agent outlining service terms, including commission requirements.

Yes. Luxury Presence has created a strategy guide for agents seeking advice on negotiating buy-side compensation. Get your copy of The Future of Buy-Side Compensation here

The best agents have shifted their thinking from the top line to the bottom line. They're obsessed with the client experience. They're taking action very quickly to level up the technology in their businesses because they understand it's the only way to deliver strong profitability and a world-class client experience.

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How I Work With Buyers

As my client, you can expect nothing but the highest level of service and counsel. I take my fiduciary commitment to you extremely seriously and believe that the best way to advocate for your best interests is through preparation. For each property my clients consider, I create a complete set of market research, potential pricing and offer strategies, contract negotiation tactics, and more.

Before the NAR lawsuit settlement proposal, some buyer’s agents were able to get away with doing the bare minimum. Thanks to assumed cooperation with the seller, they might get paid for simply showing up, unlocking doors, and pushing papers. 

While that was never my approach, it is now no longer the world we live in. As my client, you can rest assured that I will provide you with expert-level service and advice throughout our professional relationship.

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Testimonials

Read what our clients have to say about working with us.
"Tessa helped us buy our first home in LA. She was patient, extremely knowledgeable, and was the perfect balance of aggressive and supportive from start to finish. Highly recommend her for anyone who is looking to buy or sell."
"Tessa helped us buy our first home in LA. She was patient, extremely knowledgeable, and was the perfect balance of aggressive and supportive from start to finish. Highly recommend her for anyone who is looking to buy or sell."
Matt G. & Christina G.
"Tessa is an extraordinary realtor. She took time to get to know me and my wants. Then she showed me many properties to give me the knowledge I needed to see what really worked for me. Tessa was able to get me into showings before open houses.There was no time wasted. And she never tried to push me into a home that really wasn’t a fit. I was able to find a home that exceeded my expectations."
"Tessa is an extraordinary realtor. She took time to get to know me and my wants. Then she showed me many properties to give me the knowledge I needed to see what really worked for me. Tessa was able to get me into showings before open houses.There was no time wasted. And she never tried to push me into a home that really wasn’t a fit. I was able to find a home that exceeded my expectations."
Dena W.
"We worked with Tessa on three separate occasions to find and arrange monthly leases on beach vacation homes, which ultimately led to us buying a beach dream home of our own! Tessa is a consummate professional, but with a patient and personable touch. She went over and above showing us multiple homes and always with a smile on her face! If you want a pleasurable and fruitful experience buying or selling your home, I highly recommend her."
"We worked with Tessa on three separate occasions to find and arrange monthly leases on beach vacation homes, which ultimately led to us buying a beach dream home of our own! Tessa is a consummate professional, but with a patient and personable touch. She went over and above showing us multiple homes and always with a smile on her face! If you want a pleasurable and fruitful experience buying or selling your home, I highly recommend her."
Dave & Kelly T.
"Tessa is the absolute best! We loved working with her to buy our first home. With her expertise and experience, we always felt we were in good hands. We looked at a lot of houses and throughout the process she was patient and asked great questions about each property. It wasn’t just about a sale, Tessa genuinely cared about finding us the right house. We always felt she was looking out for our best interest and she was great at advocating for us as needed. She is excellent at communicating what is going on and ensured everything went as smoothly as possible. She was also really on top of every deadline. From making an offer through the inspection process, nothing slipped through the cracks. We felt really lucky to work with Tessa and would highly recommend her!"
"Tessa is the absolute best! We loved working with her to buy our first home. With her expertise and experience, we always felt we were in good hands. We looked at a lot of houses and throughout the process she was patient and asked great questions about each property. It wasn’t just about a sale, Tessa genuinely cared about finding us the right house. We always felt she was looking out for our best interest and she was great at advocating for us as needed. She is excellent at communicating what is going on and ensured everything went as smoothly as possible. She was also really on top of every deadline. From making an offer through the inspection process, nothing slipped through the cracks. We felt really lucky to work with Tessa and would highly recommend her!"
Julia T. & Jasa L.
"Working with Tessa was the most incredible buying experience ever. Tessa understands the assignment and is able to get a deal done. Tessa is excellent with negotiating and finding a medium for both the buyer and seller. I will use Tessa for all my future home purchases and sales moving forward. She makes the transaction seamless and enjoyable. Tessa is very thorough and is a solid agent to make your home buying or selling experience enjoyable. Tessa’s network has allowed her to bring in some great off market buyers. "
"Working with Tessa was the most incredible buying experience ever. Tessa understands the assignment and is able to get a deal done. Tessa is excellent with negotiating and finding a medium for both the buyer and seller. I will use Tessa for all my future home purchases and sales moving forward. She makes the transaction seamless and enjoyable. Tessa is very thorough and is a solid agent to make your home buying or selling experience enjoyable. Tessa’s network has allowed her to bring in some great off market buyers. "
Skylar W.
" Tessa was able to find the perfect house for us in Monte Nido. She understood exactly what we were looking for and what kind of vibe we wanted. She didn’t waste our time showing us houses that would not suit us. Her amazing sense of design and vision helped make our house the perfect place to bring together family and friends! I highly recommend Tessa for any and all Real Estate needs."
" Tessa was able to find the perfect house for us in Monte Nido. She understood exactly what we were looking for and what kind of vibe we wanted. She didn’t waste our time showing us houses that would not suit us. Her amazing sense of design and vision helped make our house the perfect place to bring together family and friends! I highly recommend Tessa for any and all Real Estate needs."
Sylvain & Caryn L.
"Tessa Johnson makes buying, selling or renting real estate look easy. Tessa is always positive, practical and extremely professional: she handles all aspects of remodeling as well. Tessa Johnson has a knack for making properties show well on the inside as well as have curb appeal. A native Angeleno, Tessa knows the LA scene from Malibu beach front houses to the hidden gems in the suburbs, from Sunset Plaza to Pacific Palisades. I will continue to use Tessa for all my Real Estate needs in the future!"
"Tessa Johnson makes buying, selling or renting real estate look easy. Tessa is always positive, practical and extremely professional: she handles all aspects of remodeling as well. Tessa Johnson has a knack for making properties show well on the inside as well as have curb appeal. A native Angeleno, Tessa knows the LA scene from Malibu beach front houses to the hidden gems in the suburbs, from Sunset Plaza to Pacific Palisades. I will continue to use Tessa for all my Real Estate needs in the future!"
Lucy L
"Tessa is a consummate professional. She assisted us over 10 years ago in renting and purchasing a property in Topanga, CA. It's a great feeling when your real estate always has your best interest at heart. Thank you for that. Just recently she helped us again to rent a property. From Malibu to Westlake Village and to Woodland Hills, A big territory to survey. And without a misstep, we found a new home."
"Tessa is a consummate professional. She assisted us over 10 years ago in renting and purchasing a property in Topanga, CA. It's a great feeling when your real estate always has your best interest at heart. Thank you for that. Just recently she helped us again to rent a property. From Malibu to Westlake Village and to Woodland Hills, A big territory to survey. And without a misstep, we found a new home."
Francis B