Attend the event July 30-August 1 at Inman Connect in Las Vegas! Seize the moment and take control of the next era of real estate. Through immersive experiences, innovative formats and an unparalleled lineup of speakers, this gathering becomes more than just a conference, it becomes a collaborative force shaping the future of our industry. Grab your tickets now!
I’ve seen a lot of headlines in the weeks since the National Association of Realtors (NAR) proposed the settlement Exaggerated predictions of the demise of real estate agents.
This isn’t the first time we’ve seen bizarre claims about the decline of our industry. Don’t get me wrong, I read the headlines—yes, even the actual stories behind them—because this is a critical moment for our industry.
Take the March Intel Index Survey Now
Some analysts predict that if commissions were decoupled as proposed in the NAR settlement, NAR would lose as many as 1 million members and commissions could fall by as much as 60%. In 2023, NAR membership fell by more than 26,000 members to 1.55 million.
In an environment filled with uncertainty, it is important to remember that we have complete control over the direction of our priorities. While many agents may be leaving the industry, you don’t have to be one of them.
agent value
I refuse to be fooled by knee-jerk and ignorant speculation about the future of real estate agents, especially when I see (more than a few times) our fortunes compared to those of travel agencies. Buying or selling a home is one of the most important financial and emotional investments in most people’s lives.
Last time I checked, booking flights and snorkeling trips cost a notch or two less than major life events.
Real estate agents are essential in helping people realize their true dream of homeownership. I know, and you know, most people who try to solve problems on their own quickly figure this out.
What the headlines fail to mention is the real value agencies provide.
Agents tend to be closely connected to their communities. They understand the intricacies of local market dynamics, pricing and culture so they can best represent their clients’ needs.
For sellers, no one is better able to help them understand a property’s true current and future value. Agents often pay out of pocket for marketing costs for each property, including photography, customized websites, digital marketing, etc.
For buyers, agents are irreplaceable advisors, helping consumers understand what they really want in a home and how to get it. While the typical buyer may encounter the various steps of a real estate transaction only a few times in their lifetime, agents encounter them every day.
Whether it’s how to build an offer, negotiate a price, interpret an inspection report, or recommend how best to make concessions, agents can provide a wealth of experience that directly protects their clients.
That’s why most of the great agents I’ve interviewed at Coldwell Banker Realty put their energy into strengthening these skills as advisors and allies to the consumers they guide home. In a media hurricane, they are the center of the storm: clear-headed, calm and focused.
This approach will win.
A few things to remember
Here’s what I would say to agents facing today’s uncertainty:
1. Break through the noise
Every market challenge brings opportunity. Additionally, a diviner and a panacea salesman appear in each challenge. Be wary of people who claim to have all the answers about what will change and how to deal with it.
Everyone has their own vision for the future, but the bottom line is that no one has all the answers today. All you can do now is show up as a trusted advisor to your customers.
2. Have your own value
Now is the time to take stock of your greatest strengths as an agent.
Consider these questions:
- What is your area of expertise?
- How have you helped clients navigate challenging situations in the past?
- What are your thoughts on the local market?
Customers always have questions about the value you provide. This isn’t entirely new. The most successful agents are able to listen to their concerns and ably summarize not only the agent’s role but also their own specific strengths to help guide consumers toward their home ownership dreams.
With a clear value proposition outline, you can have these conversations with confidence, understanding the mutual benefits of the agent-consumer relationship and how you should be compensated accordingly.
See, the idea of so-called “discounted” commissions is not new. We’ve all seen the 1% advertising boards for cheap brokerage firms. In my experience, consumers choose real expertise over discounts when making such a high-risk purchase.
3. Don’t stop being a dreamer
Eventually, you became a real estate agent because of your passion for making your dream come true. Don’t let the thought of change paralyze you or distract you from doing what you do best: helping consumers buy or sell homes.
Yes, consumers may be sensitive about agency commissions, but I guarantee their concerns about the pay structure pale in comparison to their concerns about their future housing and family well-being.
Yes, you may talk more about agent compensation, buyer and seller benefits, and their options. It doesn’t matter. Transparency benefits both you and your customers.
But don’t let the need for these conversations overshadow what’s most important: helping people achieve their next big step in life.
The unfortunate truth is that not every agent will take the prospect of change and uncertainty in stride. Amidst all the headlines, I do agree with this: the industry will likely be laying off some agents.
However, I don’t think there will be any agents who are truly dedicated to their craft.
Having structural support, networks and expertise in the local market has never been more important, but those who remain committed to truly helping buyers and sellers will be able to succeed.
It will be a tough, rocky climb to cope with changes, lack of inventory and increased transparency into the buying and selling process. Circumstances will continue to evolve and challenge us to be the best advisors we can be, but those who step into their roles with confidence know how to navigate complex transactions and bring care and expertise to their clients, both buyers and sellers. Those who will stay and thrive. Our business and the entire industry will be better for it.
So while the mainstream media would like you to believe that real estate agents are commoditized, the reality is that real estate purchasing is one of the most complex and regulated processes, and buyers and sellers go to the closing table with confidence because of the help of an agent . .
I want to say it loud and clear: None of these headlines diminish the value you provide to your customers and your community. Our commitment to bringing people home is irreplaceable.
Kamini Lane is Coldwell Banker Real Estate. She lives in Los Angeles.contact her LinkedIn.
