New rules adopted by the National Association of Realtors related to buyer-agency agreements and commissions may create a seismic shift in the industry, says Joan Herlong, CEO of Joan Herlong & Associates Sotheby’s International Realty.
“The bottom line is if you’re a Realtor, you’re affected,” Herlong says.
One of the new rules stands out.
Starting in mid-August, “buyer agents will be required to have a signed Buyer Agency agreement BEFORE showing a property listed by an outside realty company,” she says.
As a result, Herlong – who is primarily a listing agent – predicts a thinning of the ranks among buyer’s agents.
“Because buyers will inevitably begin asking more questions of agents on the front end, many of those agents will just opt-out altogether,” she says. “It’s going to be very Darwinian. Only the strongest, most experienced buyer agents will survive.”
And it may be good for everyone.
“As a listing agent, I’ve encountered so many buyer agents who are just along for the ride,” she says. “They’re almost fungible, interchangeable. But with the new rules, buyer agents will have to be on top of their game as buyers come to the table with more questions, more leverage.”
Another major change in August: buyer agent compensation will no longer be published on the MLS or on sites such as Zillow. “Buyer agents can no longer expect listing agents to ‘make sure they get paid,’” says Herlong. “Compensation is not up to the listing agent. However, an adept buyer’s agent can navigate these revised rules without added out of pocket expense to their buyer client, and help them get the very best deal.”
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