- Brokerages are updating agreements and training programs ahead of NAR’s new rules, but many specifics remain uncertain.
- Firms like eXp Realty, Compass, and Douglas Elliman have launched new listing and buyer agreements, and training programs have ramped up.
- Brokerages are preparing agents for conversations about decoupled commissions and the shift away from sellers covering buyer-side commissions.
According to The Real Deal, on August 17th, brokerages across the country will face the biggest shake-up in years as the National Association of Realtors (NAR) implements its new rules.
Preparing For The Unknown
These seismic shifts in the way agents do business could alter the entire industry, especially in terms of buyer agreements and commission structures.
However, the lack of detailed guidance has left many firms preparing their agents for new practices without complete clarity.
Brokerages like eXp Realty have introduced new listing and buyer agreements in anticipation. CEO Leo Pareja said these updates represent the company’s “best interpretation of the rule changes.”
Training Ramps Up
Major brokerages have ramped up training efforts to ensure agents are ready. Compass (COMP), for example, has run weeks of intensive programming, while Corcoran and RE/MAX (RMAX) have been focusing on continuous education for their agents.
However, specific details on how agents should navigate new commission rules remain scarce. Douglas Elliman (DOUG) has provided some of the most detailed training, including Zoom sessions and role plays to help agents prepare for challenging conversations about commissions.
Navigating New Rules
One of the most significant changes is the decoupling of commissions, meaning that buyer brokers can no longer receive compensation beyond what was agreed upon with their clients.
This shift represents a huge departure from the long-time traditional model, in which sellers often covered a portion of the buyer’s broker fee. Agents will now need to adjust to new conversations with clients, perhaps without the guarantee of similarly sizeable commissions.
Brokerages are also bracing for the challenge of ensuring agents understand the new requirements. As Douglas Elliman broker Jonathan Conlon noted, “Brokerages are concerned because they all have agents that will struggle to explain these new requirements in the correct way and will ultimately share in the liability if not done so.”
In Summary
With the August 17th deadline approaching, brokerages and agents are scrambling to prepare. As agents begin to navigate the new rules, brokerages are focused on ensuring their teams are well-equipped to adapt, but the true impact of the changes will only become clear in the months to come.
