In response to the National Association of Realtors (NAR) lawsuit settlement agreement earlier this year, VA homebuyers will now be allowed to pay buyer’s agent commissions, beginning August 10, 2024.
NAR Settlement Agreement
In March of this year, a NAR lawsuit settlement agreement was reached and included the elimination of the requirement for seller’s agents to offer compensation to buyer’s agents through the Multiple Listing Service (MLS). This change goes into effect August 17, 2024.
What Changes Have Been Made for VA Loans?
The NAR settlement agreement posed a unique challenge for VA homebuyers in particular. Under current U.S. Department of Veteran Affairs (VA) regulations, the VA does not allow homebuyers to pay fees or commissions to real estate agents or brokers. With sellers now having the option to not cover buyer’s agent commissions, this would have left VA homebuyers at disadvantage in an already competitive housing market.
However, the VA announced a temporary suspension of this rule. Beginning with VA loan purchase contracts executed on or after August 10, 2024, veteran buyers will be able to negotiate directly with their real estate broker or agent, allowing them the security of having the representation that they need during the homebuying process. Sellers may also now contribute to the buyer’s agent fees and they will not be counted as seller concessions.
What’s Next for Veteran Homebuyers?
While these changes are a positive step, it’s important to stay informed and work with professionals who are up to date with the latest policies. Now more than ever, it’s crucial to partner with a real estate and mortgage professional who understands your unique needs and can help you navigate this new landscape, ensuring you get the best possible outcome.
If you're a veteran looking to buy a home, your first step is to find a dedicated loan originator in your area who will support you every step of the way.
