The significant date of August 17, 2024, has passed, and the real estate industry continues to operate despite the changes in business practices mandated by the National Association of Realtors’ (NAR) commission lawsuit settlement agreement being implemented nationwide.
In the Greater Boston area, Linda O’Koniewski, the broker-owner of Leading Edge Real Estate, described the initial days of the business practice changes as “uneventful.” Despite months of preparation, O’Koniewski admitted to feeling some trepidation leading up to the date.
“I won’t deny that there was some anxiety,” O’Koniewski said. “As we reached the end of the day on Friday, we were all waiting to see if it would be a significant event, but it turned out to be quite calm. While individual agents might face challenges, I haven’t heard any horror stories yet.”
Real estate professionals have had to make adjustments, such as ensuring buyers sign representation agreements and explaining to sellers the new commission structure. Rachael Dotson, an agent at Rhode Island-based Residential Properties Ltd., emphasized the importance of fully explaining the commission structure to sellers to avoid deterring potential buyers.
On the buyer side, agents appreciate the mandatory buyer representation agreements as it prevents clients from using multiple agents for the same property transaction. Mandy Nichols, an agent at Brixstone Real Estate, highlighted the benefits of having a formal agreement in place.
However, some agents have faced challenges getting buyers to sign these agreements, which has become a distinguishing factor between great and not-so-great agents. Jason Posnick, the sales manager at Lamacchia Realty, shared an experience where presenting different agreements helped clarify the process for a buyer.
Agents are also navigating discrepancies in how brokerages handle buyer broker compensation offers. While some firms opt out of cooperative compensation on listings, others like Lindsay Pettinelli at Churchill & Banks plan to offer it if agreed upon by the seller.
Despite the varying approaches, agents agree that it is too early to determine the full impact of these changes on their businesses and markets. Brian Huskey, the associate broker at ERA American Real Estate, likened the situation to the chaos that ensued with TRID, emphasizing the need for time to gauge the marketplace impact.
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