Back in March, when news of the National Association of Realtors (NAR) settlement broke, industry professionals everywhere had questions:
- What does this mean for my business?
- What does this mean for my clients (especially buyers)?
- How do I explain these changes to consumers?
Now that we are closer to August 17, when NAR’s practice changes go into effect, we wanted to gauge industry sentiment. In June, we partnered with 1000watt to survey over 630 real estate agents and brokers to determine who is switching brokerages (and why), industry sentiment surrounding the upcoming changes, and how home buyers and sellers are reacting.
Read on for the highlights or head to BAMx for the full report.
Agents Confident Despite Upcoming Changes
Most agents indicated they are not just ready—but confident—about upcoming changes. The majority noted they are not worried about changes coming in less than one month.
In addition, only a small fraction of agents have considered leaving the industry. Less than one percent of respondents have decided to retire or leave real estate, while 16% have somewhat considered it.
The overwhelming majority, 78%, have not contemplated leaving, highlighting their commitment to adapting to the new industry dynamics.
High Satisfaction and Loyalty Among Agents
The survey highlights a generally positive sentiment among agents regarding their current brokerages. Seventy-two percent of agents reported high satisfaction, giving their brokerages a score between 8 and 10 on a satisfaction scale. This high level of contentment is noteworthy, especially given the uncertain nature of the industry today.
Despite 88% receiving recruitment pitches from other brokerages, only 4.5% switched brokerages as a result. This loyalty speaks volumes about the strong relationships and satisfaction levels within existing brokerage setups.
This loyalty may be related to how brokerages are responding to industry changes. A majority (66%) of respondents indicated that their companies have been proactive in preparing for these changes. This percentage rises among team leaders (74%) and brokers (80%), reflecting a higher level of preparedness and confidence in navigating the new landscape.
Culture and Leadership: Key Factors for Brokerage Switches
While loyalty remains high, the survey also sheds light on the primary reasons behind brokerage switches.
“Culture/leadership” emerged as the leading factor, with 38.67% of agents who switched brokerages citing it as their top reason. This indicates that agents value strong leadership and a positive cultural environment, especially during times of change.
Educating Clients on Commission Changes
Communication is key, and agents are stepping up to ensure their clients understand the upcoming commission changes. Yet, agents have been more apt to discuss changes with buyers than with sellers.
Almost all (97%) or survey respondents stated they work with both buyers and sellers. Yet, 70% of agents have begun explaining to buyers that they may need to pay agents directly, while only 58% have informed sellers that they will no longer be allowed to offer compensation to buyer agents through the MLS.
Mixed Responses from Buyers and Sellers
The survey highlights varied responses from buyers and sellers regarding the commission changes. A significant 77% of sellers are willing to offer buyer agent compensation outside the MLS, indicating a willingness to adapt to the new rules.
On the buyer side, responses are more divided, with 37% of agents reporting no pushback and another 37% experiencing mixed reactions. About 19% of agents have encountered significant pushback from buyers.
For more insights on agent sentiment as we near August 17, BAMx members can read the full report here.
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