Big Changes in Real Estate: What Buyers and Sellers Should Know

The real estate industry is in a period of significant change. Recent developments including the National Association of Realtors (NAR) settlement and new partnerships between major real estate companies are reshaping how homes are bought, sold, and financed.

While headlines about these changes are everywhere, understanding what they actually mean for buyers and sellers is what matters most.

Below is a closer look at what is happening and how it may impact the market.

The NAR Settlement and Commission Transparency

One of the most widely discussed changes in real estate from the NAR settlement is the de-coupling of buy-side commission from the sell-side commission. This means instead of an automatic, prenegotiated percentage commission of 2.5-3%, buy-side agents have to negotiate their commissions directly with buyers UP FRONT via a written Buyer Representation agreement (“BRBC”), which NAR requires to be signed by both buyer and agent/broker prior to touring any homes.

Historically, the seller often paid commissions for both the listing agent and the buyer’s agent through the MLS system. Moving forward, buyers’ agents are required to have more direct conversations up front with their agents about how their representation is compensated—particularly if the seller is not willing to pay a buy-side commission.

New Industry Partnerships

At the same time, several large real estate companies are forming new partnerships that could change parts of the home buying and selling process. Companies such as Compass, Redfin, and Rocket Mortgage are exploring ways to integrate home search platforms with mortgage services. Their claimed goal is to “create a smoother experience for buyers and sellers” by connecting home search, financing, and closing services more efficiently.

But, the problem is, these synergies are couched in slogans that try to deceive consumers into thinking the mergers are beneficial for sellers and buyers. The reality is, this is a thinly veiled attempt by Compass to monopolize more of the market by double ending (representing both the seller and the buyer on a single transaction)—a practice that is riddled with conflicts of interest and just outright unethical.

As technology continues to evolve, these partnerships may influence how buyers move through the process of purchasing a home.

Why Local Expertise Still Matters

Despite the national headlines, real estate remains highly local. Market conditions, home values, and buyer demand can vary significantly depending on the neighborhood, city, or region.

For this reason, having the right strategy and guidance remains essential when buying or selling a home. Understanding pricing strategies, timing, and negotiation can make a meaningful difference in the outcome of a transaction.

The Bottom Line

The real estate industry is evolving, and these changes are complicated and require a practicing Real Estate Attorney and Broker to navigate properly as the new laws and legal precedents therefrom are ever evolving.

For buyers and sellers, staying informed and working with experienced legal and transactional professionals remains the most important step when navigating today’s market.