Residential real estate has officially entered a new era.
As of Aug. 17, multiple listing services across the country will have eliminated fields for offering compensation to a buyer’s broker. Agents will also have to secure signed agreements with buyers before taking them to tour properties.
These changes are part of the National Association of Realtors’ settlement terms taking effect. Though proposed in March, agents from California to Miami told us there’s plenty of uncertainty around the new rules, particularly concerning education and enforcement, and questions if they satisfy the push for increased transparency at all.
Recent weeks have seen brokerages scramble to comply with the new rules, brokers challenge the requirements in federal court and the Department of Justice take an interest in one group’s attempt at updating their language.
Industry insiders are quick to brush off doomsday predictions about the new guidelines taking a hit to commissions and headcount, but have acknowledged no one can be totally sure what those changes will bring.
“Our job as brokers right now is to educate, not defend. There’s nothing for us to defend,” The Agency’s Jon Grauman said from Los Angeles. “We just need to educate consumers on what’s the new world order.”
Inside some brokers’ playbooks for insulating themselves from the change are strategies like doubling down on hyperlocal market expertise. Compass agent Paige Dooley told us from Chicago that having street-level knowledge can better secure pricing strategy and cut through negotiation.
The changes ultimately mean a little more work for brokers earlier in the process, and agents say add to already changing dynamics among homebuyers emboldened by the rise of consumer-facing digital listing platforms.
From loopholes to fallout, The Real Deal will be following the new rules landing in residential real estate from Aug. 17 and beyond.