Illustration: Lanette Behiry/Real Estate News
From agent compensation to association changes, a new report identifies 20 ways the industry can improve itself and help homebuyers and sellers in the process.
Important points:
The Opportunity Report is a sequel to the groundbreaking DANGER report from 10 years ago. Topics covered include explicit cooperation, agent compensation, and association membership. Report author and leading industry voice Stephen Swanepoel says Opportunity is “by design.” To inspire transformative action. ”
From danger to opportunity: This is not just an upbeat phrase, it literally describes the current era in the real estate industry.
The past decade has seen highs and painful lows: lawsuits, financial institutions in disarray, the rise of teams, and new brokerage models. Some of these were predicted by The DANGER Report, an in-depth analysis of risks compiled by strategist, best-selling author, and Real Estate News founder Stephen Swanepoel.
Now, Swanepoel has written a follow-up to that landmark report. Rather than focusing on the “black swan” that has already descended, we are looking to brighter days ahead.
The Opportunity Report, published today, approaches the most important challenges facing the industry and reframes them through the lens of what is not just possible, but necessary, for the residential real estate industry to thrive.
“You are in the fortunate position to be part of this pivotal moment in our industry,” Swanepoel writes in the foreword. “This report presents numerous opportunities designed to drive transformative action.”
Explore the biggest opportunities
This report describes 20 specific opportunities for those involved in residential real estate, from agents and brokers to NARs, state and local organizations, and MLSs, including some of the most high-profile opportunities in today’s real estate industry. Includes some of the topics covered.
Clear Cooperation: Industry leaders disagree on clear cooperation policies that require listings to be posted on the MLS within business days of the public market. Some think it should be eliminated, others say it should be kept (though perhaps with adjustments). The Opportunity Report calls on NAR to choose its path and “work to unite the industry behind this vision.”
“Supporters of the Chinese Communist Party typically focus on home buyers, while those advocating for the removal of the Chinese Communist Party focus on the interests of home sellers,” the report states. “The great opportunity for the industry lies in coming together to ensure that consumers, brokers, and agents have access to a transparent real estate market that supports a dynamic U.S. real estate industry and is the envy of the world.” It has become a target.”
Separation of Buyer Agent and Seller Agent Compensation: As part of the NAR agreement to resolve fee litigation, buyer agent compensation offers were removed from the MLS. However, co-op fees are not completely gone, and the report states that “agencies need to accept the unbundling of previous fee structures and position themselves for future success.”
And that success can lead to increased pay for good agents, rather than just accepting a bulk offer. “This change could be significant for seasoned buyer agents who provide significant value to their clients, including negotiation skills that save them money. They end up giving themselves a raise.” says the report.
Voluntary Association Membership: Backlash against “tripartite agreements” that require real estate agents to join national, state, and local associations is increasing through lawsuits and messages to NAR from within the real estate agent association ecosystem.
However, “allowing voluntary membership at all association levels creates a healthier, more committed, and transparent environment, making associations more relevant and responsive to their members.” ” states the Opportunity Report.
The report acknowledges that it will not be easy. “This represents a major shift in association thinking, which has traditionally focused on headcount. It will require a reconfiguration of real estate agency structures, value propositions and operating models.”
Home ownership is also an opportunity.
The Opportunity Report also looks at the American dream of homeownership, which is hampered by stubbornly high interest rates and a lack of available housing. The report calls on the industry to lead the way in making homeownership a more affordable dream through a combination of efforts such as advocacy, cost reduction and technology.
“Improving the affordability of homeownership is not only a moral obligation, but also an important way to promote financial stability, reduce inequality, foster social mobility, and strengthen communities.” strategy,” the report states. “The real estate industry has a huge opportunity to champion this cause.”
