In the ever-evolving landscape of real estate, change is inevitable. On March 15, 2024, the announcement of a landmark agreement by The National Association of REALTORS® (NAR) marked a pivotal moment in the industry’s trajectory. The settlement aims to resolve litigation concerning broker commissions and bring about significant shifts in practices, particularly concerning compensation, MLS display regulations, and buyer-broker agreements. While these changes present initial challenges, they could offer a silver lining by compelling the industry to restructure its approach to buyer relationships.
The full impact of the settlement will eventually unfold over time as the settlement is subject to court approval, but several potential changes for the real estate market include:
Increased Transparency
The NAR lawsuit settlement marks a turning point for commission transparency in real estate transactions. NAR has committed to implementing a new regulation, effective mid-July 2024, that prohibits offers of compensation on the MLS. Cooperative compensation remains possible, provided it is pursued off-MLS through negotiation and consultation with real estate professionals. These changes bring new standards, necessitating clearer communication from agents and upholding the choice clients have in selecting real estate services and compensation.
Compensation Communication
Buyer brokers may still receive compensation in diverse ways, and the forms of compensation may vary. Negotiating compensation will remain essential between agents and their clients. Following the implementation of the new rule, listing brokers and sellers may still provide compensation for buyer broker services, but without the ability to communicate such offers through the MLS.
In light of these changes, real estate agents must adapt and differentiate themselves to maintain a competitive edge and effectively engage with potential prospects. Here are some strategies to consider:
Secure Comprehensive Contact Information
Ensure that you capture complete contact details from protects using tools like Harvist’s prospect capture features (i.e., QR codes and custom landing pages). This enables prompt follow-up and professional communication, essential for nurturing prospects effectively.
Formalize Prospective Relationships
Formal representation agreements between MLS members and buyers will be crucial in order to maintain commission transparency under the terms of the NAR agreement.
Communication is Key
Communication is critical to filling out agreements, ensuring transparency, and staying in touch with prospects. Harvist streamlines communication with automated emails, postcards, letters, and voicemails, with numerous templates to select from. Keep potential prospects informed with market updates, property listings that match their needs, and valuable information.
Looking ahead, the NAR settlement signifies a critical moment for the real estate industry. While its long-term implications remain uncertain, it holds the promise of fostering a more transparent and competitive market environment for sellers. By embracing change, staying informed, and proactively adapting to evolving dynamics, real estate agents can position themselves for success amidst this transformative shift in the industry.
