Almost everything from our last Best of Masters was about the NAR lawsuit and settlement. In fact, this was our largest audience ever. Everyone is interested in knowing how this is going to play out.
In this episode, Steve and Joe share what this means to them and what it could look like going forward. They also share insightful comments and questions from listeners.
In 2021, there were 100 billion dollars in commissions in the US. Is this pie going to shrink after the NAR lawsuit and settlement? Find out what we think!
The NAR lawsuit and settlement is huge. There are massive changes happening in our industry. These changes are equivalent to what Dodd-Frank did to the mortgage industry in 2010.
We break down how commissions used to work with buyer’s agents being sub agents of the seller. We talk about changes made in fiduciary responsibility and rules for transparency.
The lawsuit found that NAR may need to pay 5.4 billion dollars. After this, negotiations started. It was just announced that they settled for $418 million.
Now buyer’s agent commission doesn’t need to be posted, and buyers representation agreements will be required in all 50 states. Starting in July with court approval.
No one really knows how this is going to play out, but we do know the changes are here. Instead of fighting it, let’s get through it together.
Join us as we navigate the possibilities. It’s not time to panic. It’s time to up our buyer representation game, improve our value, and master our craft!
Key Takeaways
The evolution of commission structures before and after the recent mandates
Why listing agents might see their share of commissions increase despite overall reductions
The anticipated increase in effort required to secure buyers under the new commission norms
Predictions for a rise in direct transactions between sellers and buyers
How the mandate for buyer’s agents to demonstrate value could enhance industry professionalism
Potential changes in how seller-paid commissions are disclosed
The necessity of representation agreements for both buyers and sellers in the new landscape
Tips for negotiating commissions with a signed buyer’s representation in hand
The emergence of service menus offered to buyers by various entities
Speculation on the impact of these changes on major real estate platforms like Zillow
The likelihood of more competitive pricing structures, including flat fees
The possibility for sellers to adjust commission offers dynamically
The critical role of securing signed buyer’s representation agreements
Questions around the future of pre-agreed broker commission rates in listing contracts
The need for extensive education among buyers, sellers, and brokers regarding these changes
The implications of eliminating the NAR’s MLS membership requirement
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