PDX Real Estate EP158: Navigating the Future of Real Estate: The Impact of the NAR Lawsuit and What's Next

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


 


Connect with Joe


Soldera Properties


Joe on LinkedIn


 


Connect with Steve


Steve’s Team at Premiere Property Group


Steve on LinkedIn


 


Resources


The Truth About the NAR Settlement Agreement


Rick Gray Real Estate Coach