Key Details:
- On June 17, 2024, Realtor.com announced an extension of its buyer agency campaign to stress the need for buyer agency for people in historically underrepresented and underserved communities.
- Several well-known real estate companies have signed a joint letter in support of buyer agency. That letter will appear in the Wall Street Journal, New York Post, and Washington Post throughout the coming month.
Since its launch on April 18, 2024, Realtor.com’s buyer agency campaign has gained nearly 40 million impressions and 18,000 downloads of its agent toolkit.
Yesterday, nearly two months later, the company announced an extension of its campaign to promote the benefits of buyer agency for people in historically underrepresented and underserved communities, including—
- BIPOC (Black/Indigenous/People of Color)
- AAPI (Asian and Pacific Islanders)
- Hispanic
- LGBTQ+
- First-time buyers
- Veteran buyers
- Lower-income buyers
The purpose behind this extension is twofold:
- To drive home the need for buyer agency, especially for underserved buyers
- To shrink the homeownership gap
Barring any legal roadblocks to the NAR settlement, changes are less than two months away. Clarifying its buyer agency campaign is part of Realtor.com®’s efforts at building a more equitable housing market.
And that begins by addressing challenges that still keep many would-be buyers out of the game.
Targeting the homeownership gap
The homeownership gap between Black and White Americans is even worse today than it was in 1968 when the Fair Housing Act passed.
Among Hispanic buyers, one in four are completing the homebuying process entirely in Spanish. And LGBTQ+ buyers are 25% less likely to be homeowners compared to all Americans.
As for Veteran buyers, seven in 10 are unaware they qualify for a zero-down home loan. And lower-income buyers are 22% more likely to have their loan application turned down.
If commission settlements drive up transaction costs or reduce access to buyer representation, buyers in these communities will find it all the more difficult (if not impossible) to purchase a home.
That’s why Realtor.com® is announcing the natural extension of its campaign to serve buyers most vulnerable to forces that could limit buyer agency (intentionally or otherwise) to those in a position to pay for it.
The point of Realtor.com®’s campaign is to drive home the critical importance of buyer agency by highlighting the indispensable role buyer agents play in an equitable transaction.
Enumerating all the things skilled and knowledgeable buyer agents do for their clients makes all the more obvious the advantage for buyers to have that representation.
Sellers need to know this, too. Because if buyer representation is limited to buyers who can afford to pay their own agents’ commissions, the pool of buyers will shrink, and sellers will find it more difficult to sell their homes, let alone get the prices they want.
The other half of making buyer agency a reliable standard is listing agents who can help sellers understand that compensating the buyer agent gives them a competitive advantage—and ultimately improves their odds of a profitable home sale.
For their part, buyer agents need to understand the specific challenges faced by buyers in historically underrepresented and underserved communities.
Knowing those challenges is critical to understanding their clients’ needs and concerns so they can make informed decisions on their clients’ behalf and provide the support and protection these buyers have as much right to as anyone else.
Buyer’s agents provide essential expertise and support in the biggest financial transaction of people’s lives. This is especially true for first-time and underrepresented buyers with limited resources or knowledge of the process. However, if the commission settlements increase upfront costs or reduce access to buyer agency it could make homeownership less affordable to the very people who need the most help. During June’s Homeownership Month, we urge the industry to join us in being a champion for consumers, raising awareness and advocating for the advantages of buyer representation for all home buyers, but particularly for first-time buyers and individuals in underrepresented communities. Faced with the biggest real estate affordability crisis in recent history, the last thing we should do is make it even harder for these individuals to access a chance at generational wealth.
Supporters of the Realtor.com campaign
Part of the campaign is a joint letter in support of buyer agency, signed by several well-known real estate organizations. Throughout the next month, the letter will appear in the Wall Street Journal, New York Post, and Washington Post.
Along with the letter, WSJ and the New York Post websites will feature digital campaign ads, which will also be shared widely across trade sites and social media.
Organizations supporting the campaign include—
- Asian Real Estate Association of America
- Homeownership Council of America
- LGBTQ+ Real Estate Alliance
- National Association of Hispanic Real Estate Professionals
- National Association of Real Estate Brokers
- Veterans United Home Loans
The large majority of net new homeowners over the next twenty years are expected to be from Hispanic and other diverse communities. The overall health and well-being of America’s housing economy will rely on these consumers having access to competent buyer’s agent representation to help them navigate through a complex and challenging home purchase process.
111 Things, v2
Finally, as part of the extended campaign, Realtor.com® is launching an updated version of its “111 things to do…” campaign creative to highlight the benefits of buyer agency for people in underserved and underrepresented communities. The update includes customized messages for each group.
An updated buyer agent toolkit provides co-branded assets, including print, digital, and social ads for participating agents to share.
To further campaign awareness and support, Realtor.com is again calling on industry stakeholders to join the effort.
