The November 2020 DOJ-NAR settlement requires that buyer’s agent commissions are apparent to consumers. But that transparency is just a first step in a push to divorce real estate commissions entirely. Should the other DOJ lawsuits succeed, home buyers will negotiate buy-side commissions directly with the buyer’s agent. So, what happens if the disruptors calling for these changes (like Jack Ryan) get their way?
On this episode of Industry Relations, Rob and Greg discuss Sam DeBord’s passionate Tweetstorm in response to their recent interview with Jack Ryan of REX, clarifying the arguments made by both Jack and Sam and considering how transparency around buyer’s agent commissions is likely to reduce the population of agent-facilitators and drive market share to the true realtor-counselors in the space.
Rob and Greg describe how a rule ending cooperation and compensation would impact the industry long-term, exploring a possible transition from a buyer’s commission to a flat fee or hourly model. Listen in for insight into the questions industry disruptors raise with regard to the role of the MLS, the brokerage, and the agent in the absence of cooperation and compensation.
Lone Wolf’s acquisition of W+R Studios and how Greg & Dan are sharing $1M of the proceeds with their team
Sam DeBord’s passionate Tweetstorm in response to our interview with Jack Ryan of REX
What makes a real estate agent a facilitator vs. a counselor
How transparency around buyer’s agent commissions could significantly reduce the agent population
How Jack Ryan’s background in politics and high finance informs the way he thinks about making real estate better for consumers
How the end of cooperative compensation is likely to disrupt real estate referral networks
The opportunity for vendors to help buyer’s agents demonstrate their value
Why Rob thinks there could be a transition from buyer’s agent commissions to a flat fee or hourly model
What agents and brokers might do to take advantage of the required disclosure of buyer’s agent commissions
The questions Jack Ryan’s line of attack raises re: the value prop of the MLS or the real estate brokerage in the absence of cooperation and compensation
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