March is usually busy for those of us in the real estate industry. For the past 10 years, you could have set your watch to when the Denver market sprang to life! This year has not been too different from historic trends although the airwaves have been a little noisy with the recent NAR settlement. I shared some initial thoughts on social media last week, watch HERE. Since then, I have been reading, listening, and engaging in discussions with my peers to understand the full impact of this settlement on those we seek to serve, our clients as well as us as realtors. But, first, a disclaimer. These are MY thoughts, not to be confused by those of the industry at large, or my brokerage. These are truly “my two cents” in response to questions I have received from many of you over the last few weeks.
We all agree that buying or selling a home is extremely stressful and emotional. As a realtor, my job is to minimize the pain inherent in the process while working in my full fiduciary capacity to ensure that my clients get the highest price for their largest asset, thereby realizing the full benefit of their investment. With buyers, I consider myself a sherpa - I carry the emotional load of finding a home, while guiding them to their final destination. In both cases, I provide a professional service for which I earn a commensurate fee at the closing table, and not before. None of this feels like some deep dark conspiracy, does it? And yet, the NAR settlement has left a bitter taste in the collective mouths of consumers and raises questions about the ethics and integrity of real estate professionals. Also, intriguingly, attention around this settlement has been about the “big bad realtors” gobbling up sellers’ profits by charging astronomical fees with little about how much the plaintiffs in this case received versus how much the attorney’s made. I happen to find this lack of transparency quite amusing in a case about full transparency of fees charged for professional services.
Not all realtors are the same and we have some rotten apples. But, to continue with the metaphor, that doesn’t mean that the orchard doesn’t also have lots of very good apples. I believe the question of buyer’s agent compensation has little to do with the big, bad buyer’s broker. Rather, it has everything to do with the buyer’s experience which has now been negatively impacted. Buyers must now navigate a complicated transaction with legal ramifications without counsel, advocacy, or support from a trusted advisor. This will have ramifications for sellers because now, the road to the closing table promises to be bumpier than usual. Most sellers desire to net the highest sale price as quickly as possible, so it is in their interest to maximize the exposure of their property to as large a pool of buyers as possible. If the burden to pay for realtor services falls on the buyer, they may decide not to see that particular property which has the opposite effect of what sellers want!
We won’t know the full impact of this settlement for a while. In the meantime, if you have questions about how to navigate the complex journey of home buying and selling, know that I am here for you as a resource. When it’s all said and done, I remain committed to what I do and will continue to provide exceptional service to help my clients achieve their dreams.
