Here are six key takeaways from the recent Missouri real estate case.
The recent verdict in the Missouri real estate case has left many wondering about its implications. Today, we’ll break down six key takeaways and discuss how these changes might impact you:
1. Anticipate industry changes. It’s almost certain that changes are on the horizon for the real estate industry. While the specifics are still unclear, discussions among industry experts indicate a shift away from traditional commission structures. However, individual agents and small teams need not panic at this stage. Rather than succumbing to fear and uncertainty, connect with your broker’s leadership. Understand their stance on the matter and, if necessary, discuss any concerns you might have. Larger battles are unfolding at the broker level, and it’s crucial to align yourself with your brokerage’s position.
2. Prepare for structural commission changes. The Department of Justice has long advocated for separating the payment of the seller’s and buyer’s Realtors. This could potentially be achieved by buyers financing their realtor’s fees into their loans or sellers directly covering the buyer’s realtor fees. Stay informed about evolving regulations and be ready for a structural change in commission payments.
3. Embrace transparency and disclosure. In the face of these changes, communication with clients becomes paramount. Take the time to thoroughly explain the alterations in the real estate landscape, emphasizing that, despite potential adjustments, the essence of real estate transactions remains largely unchanged. Clear disclosure will build trust and manage expectations.
“Those who embrace these changes will thrive in the evolving real estate landscape.”
4. Familiarize yourself with buyer-broker agreements. As the industry adapts, buyer and listing agents will increasingly formalize their relationships through agreements. It’s crucial for agents to understand and use these agreements effectively. This shift emphasizes the need for agents to secure their clients through contractual agreements.
5. Enhance buyer consultations. Buyer agents must now go beyond traditional needs and wants lists. They should articulate their value with conviction, demonstrating why choosing them over other agents matters. Buyer consultations will evolve into opportunities for agents to showcase their expertise and differentiate themselves in a changing landscape.
6. Utilize commission disclosure forms. Stay ahead of the curve by utilizing commission disclosure forms. Many brokerages will provide these, but if not, consider working with a local attorney to draft one. These forms ensure transparency and protect both agents and clients in the evolving real estate environment.
While changes in the real estate industry are imminent, staying informed, adapting to new practices, and maintaining transparency will empower agents to navigate these shifts successfully. As the industry transforms, those who embrace these changes will thrive in the evolving real estate landscape. If you have any questions, don’t hesitate to call or email.
