As the commission landscape changes, Side’s Hilary Saunders writes, it’s time for agents, teams, and brokerages to consider how this will enhance the industry’s reputation.
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Following the National Association of Realtors settlement, which has received preliminary court approval, agents and brokers anticipate changes in how agents are compensated. The settlement also raises questions about which agents and brokerages are included and how those excluded will need to adapt. Each agent has a unique perspective on how to move forward with their business.
It is apparent that the general public lacks understanding of how real estate works. The settlement may lead to the departure of bad agents from the industry, benefiting consumers in the long run.
Commissions have always been negotiable, and buyer agents’ fees were never “free.” It is essential for agents to communicate effectively with their clients to dispel misconceptions about mandatory commissions.
Communication breakdowns often lead consumers to feel they are overpaying in commissions due to inadequate service from agents. It is crucial for the real estate industry to prioritize service over profit and raise standards for agents.
Consumer benefits arise when subpar agents leave the industry, making room for exceptional agents to thrive and mentor new generations. Brokers must become more selective in supporting high-performing teams and agents who prioritize service excellence.
Embracing industry changes may impact some companies financially, but the focus should be on providing consumers with excellent agent services. Raising the bar through increased transparency and accountability will help rebuild trust with the public in real estate.
Hilary Saunders is the co-founder and chief broker officer at Side. Connect with Hilary on Instagram and LinkedIn.
The real estate industry is undergoing changes in commission structures due to the National Association of Realtors settlement. Agents and brokerages are contemplating how these changes will impact their businesses and the industry’s reputation. Many believe that the traditional 6 percent commission model is no longer sustainable, and buyer’s agents will no longer work for free. There is a consensus that communication issues and lack of exceptional service have led to misconceptions among consumers about real estate transactions. The settlement is expected to increase the complexity of transactions, potentially leading to the exit of subpar agents from the industry. On the positive side, it may pave the way for exceptional agents to thrive by serving more clients and mentoring new agents. Brokerages will need to adapt to cater to high-performing teams and streamline processes to handle multiple transactions efficiently. Embracing these changes may lead to a decline in desk fees and subscriptions for some companies, but the overall goal is to elevate the industry and regain the public’s trust. It is essential for industry stakeholders to prioritize transparency, raise standards, and focus on providing excellent service to clients. By proactively making these changes, even at the cost of some agents and companies not keeping up, the real estate industry can move forward and improve its reputation.
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