The real estate industry is undergoing significant changes, with the recent NAR settlement impacting buyer brokers and the overall industry dynamics. As the industry prepares for shifts in compensation structures and market competition, agents and teams must adapt to remain successful.
In this Q&A article, we sat down with Wade T. Micoley, Founder and CEO of RealtyHive, to gain insights on the settlement and its implications for real estate agents. He shares his perspective on how agents can navigate this changing landscape and continue to prove their value in the industry.
Can you give a quick overview of the NAR settlement?
The National Association of REALTORS® (NAR) has been involved in many lawsuits and attention from the DOJ for years. One significant case involved a lawsuit filed by the U.S. Department of Justice in 2020, alleging that the NAR's rules had stifled competition. The lawsuit focused on policies related to access to property listings, which the DOJ claimed limited consumer choice and stifled innovation. In the most recent lawsuit, NAR agreed to create a new MLS rule prohibiting compensation offers to buyer brokers. Consumers and buyer brokers can pursue compensation outside of MLS through negotiations with buyers and sellers.
How does this impact the future of the real estate industry?
A lot will have to be seen and worked through, but buyer brokers will absolutely have to create a value proposition that is compelling enough to charge the typical fees they are accustomed to.
How will this make the real estate industry more competitive?
There will be a downward pressure on buyer broker fees. Agents will be forced to work more in the fee-for-service model than a percentage of the sales price model. Think about showing a $500,000 home and a $2,000,000 home. It's essentially the same process, but in the old model, much higher fees.
What should agents do between now and July when these changes go into effect?
- Keep a close eye on updates and new details being provided, and pay attention to the changing requirements in your state. There are many resources available, such as your local real estate board, the state association, and real estate publications such as Inman News, RISMedia, and HousingWire.
- Prepare for the upcoming conversations with clients. Write out and think through what your responses to their questions will be.
- Create your value proposition. This change will lead to another competition front for agents. There are going to be low-cost providers in this new field. Why should someone pay you more? Explaining and having a well-thought-out, written buyer value statement can help.
How should agents’ & teams’ marketing change?
It’s time to move beyond “the seller will pay my fee,” and “we’ll just write it into the offer, asking the seller to pay it.” The reason all of this happened is due to the previous lack of transparency in the fees and how everyone is compensated. Lead your market and use this change as a unique advantage. Be the agent that educates your marketplace and shows buyers what you do, how you work to protect them, and your ability to negotiate on their behalf...at a fee that works for you.
These changes in the buyer process will also move into the selling side. Having the tools to create the most activity on a property beyond social media, the MLS, and signage will create value for the seller and their selling needs. Going into a listing presentation with a vast array of selling tools shows you are the go-to agent to complete the sale of their property. It has been easy to list and sell in recent years, but those of us who have been in the market for many years see this as another peak and valley. To win long-term in real estate, you must be prepared, educated, and understand what the seller needs even when they don’t. Not all sellers and properties fit into one marketing box.
How do tools like CallRail help?
What we love about the CallRail system is the ability to segment and track our marketing initiatives and analyze what campaigns or methods generate the best results. At RealtyHive, we market properties worldwide for brokers, agents, and property sellers. This gives us a unique opportunity to see what is most effective worldwide. What works for us in marketing a luxury condo in Dubai may be different from what works when marketing an Italian villa. We generate over 260,000 unique visits to our site a month—that's a lot of data and leads to track!
Optimize leads and enhance client experiences with CallRail
As the real estate industry navigates through significant changes following the NAR settlement, agents and teams must adapt to new compensation structures and market trends. CallRail's Call Tracking and Conversation Intelligence® empower agents to identify their most effective lead channels and enhance client experiences through call recordings, transcriptions, summaries, and sentiment analysis. By leveraging these tools, agents can navigate the evolving real estate market with insights and strategies that drive performance and client satisfaction.
