NAR to sellers: Concessions could ‘lead to better, faster offer’ 

The latest addition to NAR's post-settlement consumer guides tackles seller concessions, with a focus on clarifying what they are — and how they can be used to pay agents, but are not the same as offers of compensation.

"Concessions could make your property more attractive to buyers or lead to a better or faster offer," the guide states. "Concessions also make home ownership more accessible for buyers by reducing upfront expenses."

What the guide says about agent compensation: Concessions can cover "a variety of costs or fees associated with buying a home" including "fees for professionals like agents and appraisers."

But they're not the same as an offer of compensation, where "the seller or their agent agrees to compensate a buyer's agent for bringing a buyer who successfully closes the transaction."

How seller concessions work: Concessions can be promoted up front (though a consumer group recommends against this) or requested by a potential buyer. But they're usually not binding until formalized in a contract, the guide states.

There are limits on the total value of concessions, and they vary depending on state law and the buyer's lender. However, payments being offered specifically for a buyer's agent don't count against these limits.

How the MLS comes into play: The guide makes clear that offers of agent compensation cannot be made on the MLS. But concessions can be included there, with caveats:

"Keep in mind that not all MLSs allow concessions to be advertised, and some only allow you to indicate whether you are offering a concession with a simple "yes" or "no." If you choose to put a concession on an MLS, it must be written as the total sum of all concessions offered and can't be conditioned on the use of, or payment to, a buyer's agent."