If you’ve ever been part of a conversation about real estate—whether
you’re buying, selling, or just curious—you’ve likely come across the National
Association of Realtors (NAR).
NAR is one of the most influential organizations
in the real estate world, shaping policies, setting standards, and advocating
for both agents and consumers. But when it comes to navigating the complexities of the housing market,
it often feels like there are multiple “dogs” in the fight.
Buyers and sellers
have their goals, Realtors like us have ours, and then there’s NAR—the
organization tasked with balancing it all. Each of us has something at stake,
and the recent changes to commission structures, effective August 2024, have
shifted how we all operate.
As a REALTOR®, I feel these changes every day. They shape how I earn, how
I serve my clients, and how I navigate an industry that’s constantly evolving.
Let’s dig into what’s happening, how it impacts the real estate process, and
why it matters to everyone involved.
What Exactly Is NAR?
The National Association of Realtors, or NAR, is a trade organization
representing over a million real estate professionals across the United States.
Established in 1908, NAR’s mission is to promote homeownership, protect
property rights, and support its members by advocating for industry-friendly
policies.
NAR also upholds a strict Code of Ethics that governs how Realtors
operate. This code emphasizes professionalism, client advocacy, and
transparency. It’s part of what sets NAR members apart, and it reflects a
commitment to high standards in the real estate profession
What's at Stake with the Recent Changes
As a my role is to serve my clients’ best interests while navigating the policies and practices that shape our profession. Recent changes to how commissions are structured have added a new layer of complexity to the way we work. Let’s break it down.
1. The Commission Changes: What’s New?
Traditionally, sellers paid a commission—often 6% of the home’s sale price—split between the buyer’s agent and the seller’s agent. This system allowed both agents to receive fair compensation, while the seller shouldered the costs.
However, as of August 2024, NAR has updated its policies to reflect the evolving needs of the marketplace. Under these new guidelines, sellers are no longer required to offer compensation to buyer agents through Multiple Listing Services (MLS). Instead, buyer agents and seller agents must negotiate their respective commissions directly with their clients.
Here’s what this means for everyone involved:
For buyer agents, they are now required to negotiate their commission directly with the buyer. This change places more responsibility on buyer agents to communicate their value to clients. Buyers, already balancing closing costs and other expenses, may be more cautious about taking on additional fees for representation. As a result, buyer agents must clearly demonstrate how their services help clients navigate the home-buying process.
For sellers and their agents, they may appreciate the reduced financial burden of not having to cover both sides’ commissions. However, this shift also requires a greater focus on ensuring smooth negotiations. Sellers might want to confirm that buyers are adequately represented by agents, as this representation can play a critical role in closing the transaction successfully.
2. Increased Need for Transparency and Education
One of the most significant outcomes of the commission changes is the increased emphasis on transparency. Buyers and sellers may now have questions about how agent compensation works and what value they are receiving for the fees they pay.
For Realtors, this means:educating clients about the role we play in ensuring a successful transaction Clearly communicating the scope of our services, whether it’s marketing a listing, negotiating offers, or handling complex paperwork. Demonstrating our value through professionalism, market expertise, and a commitment to advocating for our clients’ best interests.
These conversations can help build trust and ensure that clients fully understand the real estate process, even as policies evolve.
3. Adapting to a Competitive and Evolving Marketplace
The real estate industry has always been competitive, but the recent changes mean Realtors must work even harder to differentiate themselves. With buyer and seller clients now negotiating commissions directly, there’s more pressure to show the tangible value we bring to the table.
Public Perception of Realtors: What People Don’t See
One of the biggest challenges Realtors face—especially in light of
changes to commission structures—is the way the public perceives us.
To many,
what we do isn’t always visible. Unlike other industries, where results are
immediate and tangible, much of our work happens behind the scenes. This
creates a gap in understanding about the immense value we bring to the table.
For full-time REALTOR® like me, this isn’t just a job or a side
hustle—it’s our livelihood. We wake up every day with the knowledge that we
are, in many ways, self-employed. Unlike some professions where there’s a
steady paycheck deposited into your account every two weeks, Realtors don’t
have that kind of safety net.
I like to say, I wake up unemployed every
morning, and it’s up to me to find new opportunities, serve my clients, and
earn my next paycheck. It’s a perspective that keeps me motivated, driven, and
resourceful.
No Monthly Paycheck: What That Means
In real estate, there are no guarantees. Every deal closed and every
commission earned comes after weeks—or even months—of hard work.
The absence of
a guaranteed paycheck means that Realtors like me must constantly stay ahead of
the curve, adapt to changing markets, and work tirelessly to market both our
services and the properties we represent. It’s not just about showing houses or
putting up "For Sale" signs—it’s about building a business from the
ground up every single day.
Relentless Marketing: Building a Brand
Every Day
Marketing is one of the most significant—and often overlooked—parts of being a REALTOR®. To stay competitive, I have to invest in getting my name and services in front of potential clients. That means not just marketing homes, but also marketing myself as a trusted professional. However, marketing is just the tip of the iceberg when it comes to what a REALTOR® does behind the scenes. Here’s what that looks like in more detail:
Creating Awareness
Creating awareness is about more than just putting my face on a flyer or running an occasional ad. It involves building a consistent and recognizable presence across multiple platforms and within the community.
On social media, I dedicate time to creating engaging content—whether it’s sharing market updates, showcasing homes, or answering questions about the buying and selling process. This keeps my audience informed and positions me as a reliable resource for real estate expertise.
Beyond the digital world, I stay visible in the local community by attending events, sponsoring school or neighborhood activities, and participating in charity drives. These efforts aren’t just about visibility—they’re about showing my genuine commitment to the community I serve, which builds trust over time.
Promoting Listings
When it comes to selling a home, I do far more than just list it on the MLS. I start by working with the seller to determine what improvements or staging might help their home sell faster or at a better price. This could involve arranging for fresh paint, landscaping, or even professional staging services.
Once the home is ready, I bring in professional photographers and videographers to capture its best features, ensuring it shines in every ad, online listing, and brochure.
Marketing the property involves crafting detailed descriptions, creating targeted social media campaigns, hosting open houses, and following up with potential buyers.
I also ensure the listing appears on all relevant platforms, reaching local, national, and even international buyers. And all of these expenses—staging, photography, digital ads—come out of my pocket until the home sells. It’s a significant investment that reflects my commitment to achieving the best results for my clients.
Building Relationships
In real estate, relationships are everything. I spend a significant amount of time networking with other professionals, including mortgage brokers, appraisers, inspectors, and contractors. These connections ensure that my clients have access to a trusted network of experts who can help make the buying or selling process as smooth as possible.
I also work hard to maintain relationships within the community. Whether it’s connecting with local businesses, attending town hall meetings, or simply engaging with neighbors, I make an effort to stay active and involved. This not only helps me stay informed about what’s happening locally but also ensures that I remain a trusted and recognizable figure in the area.
Analyzing Market Trends
One of the most critical aspects of my job is staying informed about the real estate market. This means analyzing local market data, understanding broader economic trends, and keeping up with changes in real estate laws and regulations. I spend hours researching property values, studying comparable sales, and attending industry seminars to ensure I’m always prepared to advise my clients.
For sellers, this means I can provide accurate pricing strategies that reflect current market conditions, maximizing their profit while minimizing the time their property stays on the market. For buyers, it means I can help identify opportunities and guide them toward making smart investments.
Tailoring Client Experiences
Every client’s situation is unique, and no two transactions are ever the same. For a first-time homebuyer, I may spend extra time walking them through each step of the process, explaining things like earnest money, appraisals, and closing costs. For a seller who’s downsizing, I might help coordinate moving services or recommend estate sale professionals.
I also work with clients on specific timelines. Some need to close quickly due to a job relocation, while others may need time to prepare their home for sale. Customizing my approach to fit each client’s needs ensures a smooth and positive experience, no matter the circumstances.
Managing Logistics
Real estate transactions are incredibly complex, with countless moving parts that need to come together seamlessly. I coordinate inspections, appraisals, and showings, ensuring every detail is scheduled and executed on time. I review contracts, negotiate terms, and manage communication between buyers, sellers, lenders, and attorneys.
It’s a delicate balancing act, requiring attention to detail and the ability to juggle multiple responsibilities simultaneously. My job is to make this process look effortless for my clients, but behind the scenes, it requires significant effort, planning, and follow-through.
Advocating for Clients
As a REALTOR®, I am my clients’ strongest advocate. This means negotiating fiercely on their behalf to secure the best possible terms, whether they’re buying or selling a property. During inspections or appraisals, I ensure my clients’ interests are protected, addressing any red flags that could affect the deal. If challenges arise, such as low appraisals or unexpected repairs, I work quickly to find solutions and keep the transaction on track.
Advocacy also extends beyond the transaction itself. I educate my clients about their rights and responsibilities, helping them feel confident and informed every step of the way.
Educating Myself
Real estate is an ever-changing industry, and staying at the top of my game requires constant learning. I regularly attend workshops, complete continuing education courses, and participate in professional development opportunities to ensure I’m up to date on the latest market trends, technology tools, and best practices.
This ongoing education benefits my clients by allowing me to provide the most accurate advice and use the most effective tools to market their properties or help them find their dream homes.
The Commitment
Every dollar I invest in marketing, every hour I spend analyzing trends, and every effort I make to build relationships is an investment in my clients. Much of what I do happens behind the scenes, and while it may not always be visible, it’s all designed to deliver exceptional service and results.
Selling a Lifestyle, Not a Product
One of the most common misconceptions about Realtors is that we’re just
"selling houses." But what we’re really selling goes far beyond the
property itself. A home is where people build their lives, make memories, and
find a sense of security. It’s one of the biggest financial and emotional
investments a person will make, and my role is to guide them through this
process with professionalism, empathy, and expertise.
Why This Matters to You (and Me)
The changes to commission structures are more than just an industry
adjustment—they’re a reflection of the evolving needs of buyers, sellers, and
agents alike. For clients, these updates offer greater transparency and control
over their real estate transactions. For Realtors, they present an opportunity
to educate clients, adapt to a changing marketplace, and reinforce the value we
bring to the table.
At the end of the day, this isn’t just about policies or percentages—it’s
about trust. Buyers and sellers want to know they’re getting a fair deal.
Realtors want to feel supported by the system, not boxed in by it. And NAR is
working to strike a balance between maintaining professional standards and
embracing change.
Final Thoughts: Adapting to a New
Landscape
As Realtors, we operate at the intersection of tradition and innovation.
The recent changes to commission rules are a reminder that our industry is
always evolving, and it’s our responsibility to adapt while staying true to our
commitment to professionalism and client advocacy.
By focusing on transparency, communication, and value, I believe we can
navigate these changes successfully—and maybe even help shape a better future
for real estate.
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