The proposed settlement by the National Association of REALTORS® (NAR) regarding real estate commission structures and buyer-agent agreements has sparked heated discussions from all angles. Still, there’s one thing that agents can agree on: it’s all a matter of perception.
RISMedia connected with three real estate practitioners who shared their experience with the topic thus far, who pointed to continued transparency as the key to navigating the murky waters of potential changes.
In terms of tangible shifts, there are few. Chris Giolitto, real estate agent with William Raveis in Connecticut, says his brokerage is holding out to see what the outcome of the settlement will be.
While Shawneequa Badger, leader of Oakland-based The Badger Real Estate Group at eXp, largely agrees it’s a wait-and-see game, she initiated an immediate team meeting upon learning about the proposed settlement.
“I wanted everyone to feel supported and heard, so I made sure to provide a safe space for questions and concerns. Keeping our team well-informed was my top priority,” she says.
eXp has also provided them with a Buyer Representation Toolkit they can share with sellers and buyers, alongside extensive training at both the team and broker levels.
For Leigh Brown, leader of five-agent group One Community Real Estate, it’s status quo as North Carolina already had comprehensive policies and general statutes in place to protect buyer-agency and the consumer overall, she says.
“The only thing we’ve done is added a compensation plan where the consumer can choose to pay hourly instead of commission if that’s the route they want to take,” says Brown.
What consumers are hearing
The three agents agree there’s been a lot of speculation in public debate and not a lot of facts. This has led to some confusion on consumers’ part.
“I’ve gone to great lengths to address the narrative surrounding agent compensation,” says Badger, who has not only had one-on-one conversations with her clients, but taken to social channels like LinkedIn to add context to the NAR settlement discussion.
The fee structure has always been flexible, she says, and will remain that way as the industry navigates through this adjustment period.
Brown, however, blames some media coverage for how these conversations have taken shape, which introduced problems to an industry that she says was the “last fair and free market on planet Earth.” As a result, she’s having to refute unproven allegations, she says.
“It’s a difficult situation to handle,” says Giolitto, commenting on the media frenzy, “But I think REALTORS® are doing themselves a disservice by ‘firing back.’ I believe my role is to meet with prospective buyers and sellers, explain how the new laws affect them, and explain the options they have moving forward so that they can make the best decision for their families.”
Shifting perception
Within an industry that has been flooded with a negative perception of REALTOR® value, there’s an opportunity to use these ongoing conversations with consumers to shed light on real estate processes, regardless of what their next evolution might be.
“We are preparing our sellers in advance—whether they choose to offer compensation to the buyer agent or not,” says Brown. “If an offer of compensation is agreed upon, it will be offered to any REALTOR®.”
It’s a chance for improved transparency and showcasing true value in the marketplace, says Badger. “Embracing clarity and openness can turn confusion into a positive outcome for everyone involved.”
According to Giolitto, “REALTORS® who care about their clients will succeed because their value will be unmatched. These REALTORS® understand the importance of protecting their clients’ interests throughout a transaction.”
This is the case throughout the offer, inspection and closing processes, he says. “The insight of a REALTOR® saves them tens and tens of thousands of dollars down the line of owning their home.”
