Lisa Mailhot | March 25, 2024
Buyers
The real estate industry stands on the brink of a transformation. The anticipated approval of a settlement with the National Association of Realtors (NAR) suggests a significant shift in how listing brokers make cooperative compensation offers to buyer brokers. Contrary to maintaining the status quo, this change is expected to unleash a wave of innovation, driving down commissions for consumers and altering the landscape for real estate professionals.
A conversation with Robby Braun, a key figure from Cohen Milstein Sellers & Toll, sheds light on several misconceptions surrounding the settlement. Firstly, the settlement does not grant a blanket release for Realtors from past anti-competitive practices. It also places limitations on off-MLS offers of cooperative compensation, ensuring MLS data is not used to facilitate such offers. This stands as a measure against potential workarounds that could undermine the spirit of the agreement.
The settlement is poised to stimulate a new wave of innovation within the industry. It opens doors for diverse compensation models, efficiency improvements, and a variety of service providers, including discount brokers and real estate attorneys. This environment encourages experimentation and competition, which are likely to lead to lower commissions and more options for consumers.
An important aspect of the settlement is its potential to reduce steering by promoting transparency. It requires detailed disclosures about compensation early in the broker-client relationship, thus diminishing the opacity that has historically benefitted certain practices at the expense of competition and consumer choice.
Despite potential resistance in the initial stages, the settlement is expected to catalyze a market shift towards more competitive pricing and innovative business models. Realtors who ignore these changes risk falling behind, as the settlement fundamentally alters the incentives within the industry.
As we stand on the cusp of these groundbreaking changes, it's clear that the real estate market is evolving. This evolution promises greater transparency, innovation, and, most importantly, enhanced value for consumers. For those looking to navigate this new landscape in Orange County or beyond, connecting with a knowledgeable partner can make all the difference. Let's connect and explore how these changes can benefit your real estate journey.
For more insights and updates on the evolving real estate market, stay tuned to our blog.
New-home sales slowed in July 2025 as affordability challenges weighed heavily on buyers, despite builder incentives and discounts. With prices dropping below existing… Read more
Nearly half of U.S. workers are reconsidering big financial moves like purchasing a home because of concerns over job stability, according to a new Redfin survey. Whil… Read more
July 2025 housing starts data shows single-family construction climbing in the South while slowing in other parts of the country. For Orange County buyers and sellers,… Read more
Apartment-building permits slowed across the U.S. this past year, signaling tighter future rental supply even as demand firms back up. Here’s what the national trend—a… Read more
Mortgage rates have dipped to their lowest point since April, creating new opportunities for buyers and shifting the negotiating landscape for sellers. This drop could… Read more
Renting a home comes with more than just monthly rent. Hidden costs like utilities, insurance, and maintenance can vary significantly between houses and apartments. Le… Read more
Mortgage rates have fallen to their lowest point in nearly a year, giving homebuyers more room in their budgets and creating fresh opportunities for sellers. Discover … Read more
Discover the latest housing market trends, including significant home price drops in major U.S. metros like West Palm Beach and Austin. Learn what these changes mean f… Read more
Home values are now falling annually in four major U.S. cities, signaling a shift in the national housing market. Learn which metros are affected, why this matters, an… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most