Real Estate

Plan if you must, but prepare for the unexpected.

Real estate professionals have survived upheaval and change in the past, and we will again, writes broker owner Teresa Boardman, even if we don’t yet know how.

May is the month of commission and compensation in Inman. We’ll sort through the noise and misinformation and provide you with the latest facts and strategies on how to progress in the wake of the Commission’s settlement. And find updates straight to your inbox with Inman’s new weekly digest Commission Chronicles.

National Association of Realtors (NAR) Proposed settlement For him Commission cases The way real estate agents do business will change. The settlement rules, which have been initially approved by Setzer. Burnett will judge and possibly begin enforcement. August 17, 2024will combine listing and buyer commissions, remove commission displays from the MLS and require agents to sign contracts with their buyer clients before showing homes.

This is not new information. We have known about the proposed settlement for over a month. Unfortunately, we won’t really know how the new rules will affect businesses or agent pay until they are implemented and implemented for some time.

As a veteran in real estate, I’ve been through many ups and downs, disruptions and even a pandemic. And one thing it has taught me is that making plans in the midst of uncertainty is a fool’s errand. Here’s why:

When the pandemic hit, there was no plan.

In 2020, we did not have time to update our business plans before the outbreak of the COVID-19 pandemic. No one had a blueprint for how to survive the pandemic or how to stay in business.

On March 13, 2020, the President of the United States declared a national emergency. Then there were national and local “stay-at-home orders.” In some states, real estate was considered an essential service, and we were allowed to operate under a new set of safety rules.

March is a busy month for most real estate agents. I remember the houses we had on the market at the time and talking to clients we all had to figure out what to do next. Some homeowners didn’t want anyone in their home, and for a time, open houses were not allowed in many areas.

Some homebuyers have put their house search on hold, while for others, relocation has become an emergency of sorts. In fact, in March 2020, The number of people moving increased..

As real estate companies were forced to close their offices, real estate agents worked from home. For some it was a new experience. For many, it was not.

Things change fast.

My biggest disappointment was the long line at the bank. The lobby was closed, and we could only use the drive-up windows. Back then, mobile deposit limits were much lower, and wiring money wasn’t as easy as it is now.

The co-working space we were using for the office closed first temporarily and then permanently. Deliveries are sometimes sent to what is now an empty building, and a mysterious person signs for them.

Before COVID, we didn’t have a plan for how to address the issues that came up during the pandemic. I didn’t have a plan for how to handle mail, banking or real estate closings that couldn’t be done in person. We learned how to meet clients on the Internet and how to handle showings in partially closed condo buildings.

We had to learn how to protect ourselves and our families from potentially deadly viruses while earning a living.

We learned how to navigate a world where everything changed overnight. We learned to deal with large amounts of stress and uncertainty. Does anyone have any plans for March 2020?

Where are we now?

Here we are four years later, getting ready for some changes that will affect the way we do business.

The change is huge when it comes to commission cases and settlement. We will no longer be able to offer compensation to buyer agents in the MLS with our listings, pursuant to the proposed settlement.

This means that buyer’s agents will need to determine whether the listing agent is paying the buyer’s agent a commission, if the buyer’s agent will be paid through the seller’s incentives, or if the buyer will pay their agent. will have to find another way to pay. who knows Maybe the buyer’s agency will die, and buyers will work with listing agents instead.

None of us have a crystal ball. We do not know what the unintended consequences of the proposed settlement will be. We cannot predict how consumers will respond to changes in the way we do business, just as we did not know how consumers would respond to a pandemic.

No one predicted that home sales would spike during the pandemic. Peak in 2021 and then a decade low in 2023.

Many of us thought the pandemic would slow home sales in 2020 and leave more Realtors. I know a few people who decided to retire, but now we know that the total number of realtors has increased and possibly reached 1.5 million. Membership has declined February fell below that number for the first time since May 2021.

We should talk about how buyers’ agents will be paid and work through different scenarios, including what to do if buyers are under contract because they don’t have the funds.

By this time next year, we’ll all be doing things differently than we are today, and changes won’t be part of the plan we made ahead of time. There will be new opportunities that we have not even imagined yet. There will be winners and losers. Some Realtors will quit, and some will start.

Those who thrive after settlement will be those who are flexible and able to innovate—agents and real estate companies with a sense of adventure rather than a sense of entitlement. People with imaginations who are willing to try new things and take a risk or two. They can think outside the box of “we are necessary and should pay X amount because we are entitled”.

We didn’t set out to lose the Bombshell Commission cases, but here we are. Sure, a plan would be nice, but I’m in no rush to make one.

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