Section A
Real Estate Agents and Brokers
Nine opportunities for agents, teams and brokerages — from decoupled compensation and buyer-service best practices to AI, commission compression, mergers and the reinvention of the brokerage model.
The 9 Opportunities
Listed in the order they appear in the report.
- A1
Decouple Buyer and Seller Agent’s Compensation
The National Association of Realtors lawsuit settlement makes buyers separately responsible for compensating the real estate agent that helps them buy a house. Buyer agent compensation can no longer be paid through a unilateral offer of compensation through the MLS.
- A2
Establish Best Practices for Buyer Services
The practice change in the NAR settlement that requires MLS participants to obtain buyer agreements before showing a house may cause some consumers to forgo buyer representation and a loss of services for consumers.
- A3
Enhance Credibility with the Consumer
The reputation of real estate agents has suffered due to recent lawsuits; threatening the long-term stability and value of real estate professionals and underscoring the urgent need to rebuild credibility and restore trust.
- A4
Elevate Agents: A New Perspective on their Role
The industry has a unique “second chance” to redefine the role and value of real estate agents, positioning them as professional advisors rather than licensees or salespersons.
- A5
Digitize the Real Estate Transaction with AI
Artificial Intelligence is among the most transformative technologies ever introduced to residential real estate, potentially serving as the catalyst to fully digitize the real estate transaction process.
- A6
Thrive Amid Commission Compression
With changing consumer behavior, emerging business models, and a declining perceived value putting significant downward pressure on commissions, it is critical to strategize now to mitigate the impact.
- A7
Reinvent the Brokerage Model for a New Era
The recent upheaval caused by lawsuits, combined with ongoing downward pressure on brokerage margins, has created an environment ripe for implementing new business models that were previously considered unviable.
- A8
Harness the Power of Mergers
Consolidation can reduce redundancies, widen thin margins, enable better use of technologies, and provide a viable exit strategy for business owners.
- A9
Maximize the Strength of Teams
Teams bring together diverse skills, perspectives, and experiences that enable them to tackle challenges the traditional real estate brokerage model has not effectively addressed.