{"id":170006,"date":"2024-04-01T13:16:31","date_gmt":"2024-04-01T19:16:31","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=170006"},"modified":"2024-04-15T06:11:10","modified_gmt":"2024-04-15T12:11:10","slug":"im-a-real-estate-agent-this-is-how-i-feel-about-the-nar-case","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/im-a-real-estate-agent-this-is-how-i-feel-about-the-nar-case","title":{"rendered":"I\u2019m a Real Estate Agent\u2014This Is How I Feel About the NAR Settlement and the Changes to Come"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC1915112380\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC3190440005\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-the-mls\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">MLS<\/span><\/a><span data-preserver-spaces=\"true\">) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it\u2019s no big deal and business as usual.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">National media has seized on the story, with headlines such as CNN\u2019s \u201c<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnn.com\/2024\/03\/15\/economy\/nar-realtor-commissions-settlement\/index.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The 6% commission on buying or selling a home is gone<\/span><\/a><span data-preserver-spaces=\"true\">\u201d and the&nbsp;<\/span><em><span data-preserver-spaces=\"true\">New York Times<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;Daily podcast titled \u201c<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/podcasts.apple.com\/us\/podcast\/the-daily\/id1200361736?i=1000649841719\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Bombshell Case That Will Transform the Housing Market<\/span><\/a><span data-preserver-spaces=\"true\">.\u201d Much of how this will actually affect homebuyers, sellers, and agents is yet to be determined, and we will have to watch and see how things develop.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here, we will explore what changes we know will take place and how those changes could impact real estate agents.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What Actually Changes for Agents?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The actual changes of the settlement that would go into effect if approved by the federal court are:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Listing agents can no longer advertise buyer agent commissions on the MLS.&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Buyers and buyer agents will have to execute written agreements (buyer agency) to show homes and submit offers.<\/span><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">No more advertising buyer agent commissions in the MLS<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Until now, most MLSs have allowed a listing agent to advertise a buyer agent commission. This commission was agreed upon between the seller and listing agent, or, depending on the state, the listing agent decides how much of their agreed-upon commission they will offer to the buyer agent.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Currently, the buyer&#8217;s agent could simply look at the property on the MLS, see the commission being offered, and know what they stand to earn if they complete the sale with their client. This allowed the buyer agent to largely negate talking about compensation with their buyer.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite all the headlines, this doesn\u2019t mean that sellers offering buyer agent commissions are over (more on that later). However, it does mean two things:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Listing agents will get a lot more phone calls seeing what the status of a buyer&#8217;s agent commission is. This isn\u2019t simply for the agents to decide to steer clients toward this property or not because of payment (which is illegal and against NAR ethics), but to know if a commission is being offered or if they would need to factor that into a potential offer on the home. Although the idea of a lot more phone calls can seem like more work, good agents welcome the opportunity to talk to interested buyers and buyer\u2019s agents and have more opportunities to make deals happen.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Buyer agent commissions will be a negotiation point at every part of the home sale process. It will be talked about before seeing a home and starting a working relationship between buyer and buyer agent in structuring an offer and a potential ongoing negotiation point once under contract.<\/span><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Written agreements between buyers and buyer agents.&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The second major change brought about by the settlement is the enforcement of written working agreements between buyers and buyer agents. Technically, this will directly affect the states (the majority) that still practice some form of subagency.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In practice, subagency occurs when a listing agent and seller have a binding written agreement to work together to sell the home. When a prospective buyer sees the home with an agent and wants to put in an offer, that agent enters into a subagent relationship\/agreement with the listing agent and seller to be compensated rather than being in a written binding agreement with the buyer exclusively.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Often, a disclosure of the working relationships is provided to the buyer that outlines the relationship between the seller, listing agent, subagent, and buyer and says the subagent will work in the buyer&#8217;s best interest. Simultaneously, the subagent is contractually a fiduciary of the listing broker and seller for compensation.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For years, this practice has understandably been cited as a conflict of interest, and it\u2019s just a convoluted way to do business. Upon ratification of the settlement, buyers and buyer\u2019s agents will have to enter into a contract outlining their working relationship, defining that the buyer\u2019s agent will be the fiduciary to the buyer working solely for their best interest, formally known as<\/span><strong><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">buyer agency. States like Colorado, where I hold my real estate license, have been practicing buyer agency since the 1990s.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Frankly, the NAR should have made all states adopt this long ago to prevent antitrust and conflict of interest complaints. This ruling should clarify the working relationships in a real estate transaction and promote more disclosure about real estate brokers&#8217; compensation.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The second rule doesn\u2019t directly affect agents in states that already practice buyer agency, but these two new rules, taken together, will change how we do business and the conversations about compensation with buyers.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Traditionally, I and other real estate brokers could tell buyers they had no obligation to pay us directly. I will be paid by the listing broker or sellers because 99% of listings on the MLS offer decent compensation. This image outlines how we structure that contractually from the Colorado Real Estate Commission\u2019s Exclusive Right to Buy Contract by choosing 7.3.3.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Starting in July, without knowing what the seller or listing broker is offering for commission via the MLS, as well as it is a potential point of negotiation between the buyer, buyer agent, and seller\/listing agent, most brokers will have to talk about the potential of buyers paying a commission if the seller isn\u2019t willing to pay and how that will be structured. Agents will need to talk about how they will be compensated for their work, and more importantly, they will need to hone in on their value proposition to demonstrate why they should be paid in the first place. There will be a lot more buyer agreements in the future where 7.3.1 is checked.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Value of Buyer\u2019s Agents<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The questions left to be answered include: Will these rule changes bring about more competition when it comes to agent commissions? Will seller sentiment change to offering lower commissions or no buyer agent commission at all? Or will we go forward with a few different semantics but run the business as usual?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Until a new norm has been set, it will be paramount for buyer agents to demonstrate their value to potential buyers, who may have to pay commission at closing. Agents need to be proactive about the following.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The fundamentals&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Buyers&#8217; agents do a lot of work that goes unseen. As agents, we need to improve our communication of the fundamentals of what we do.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We are data analysts mining through lists of properties, matching homes that meet our buyers\u2019 needs, goals, and budgets. Agents spend endless hours showing homes, pointing out both the pros that make a home special and the cons that buyers should be aware of, and that could be potential negotiation points. We simultaneously play counselor and financial advisor as we coach clients through the emotional roller coaster that is the biggest purchase of their lives.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Brokers are the quarterbacks of the real estate transaction. They coordinate with the co-op agent, lenders, title companies, lawyers, inspectors, and appraisers and ensure that everyone does their job within the contract deadlines and in the best interest of the buyer.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We are expert negotiators. Personally, I saved clients hundreds of thousands of dollars on individual deals. We are experts in real estate contracts, making sure our clients have contingencies and are not taken advantage of. And we do all of this for multiple clients at one time.&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">Agents: Let me know what I\u2019m missing in the comments!&nbsp;<\/span><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Payment structures&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Agents need to propose structures in order to be compensated if a seller isn\u2019t willing to pay them. New ideas and models will emerge. Examples include but are not limited to the following:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Flat fees:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Many \u201cbudget brokers\u201d already offer flat-fee models. The cheaper they are generally, the less service you receive.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Min and max fees:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">A broker can suggest a minimum and maximum fee. This gives options for a seller to pay or a buyer to pay. If a seller offers a commission and it falls within the range, the seller pays. If it\u2019s under the set range, the buyer would pay all or a partial amount up to the minimum. If a seller is offering over the max, the agent could then market this as a rebate back to the buyers toward the purchase price or closing costs.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Hourly or per-offer rates:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">Many have proposed that agents should start billing clients like lawyers based on hours and contracts drawn up. If it is a quick, easy transaction, it costs less. If it is a year-long property search, touring hundreds of homes with multiple offers, it costs more.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Built into contract:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">The hard truth is some buyers will not be able to afford a buyer agent commission. An option would need to strategically build this into an offer that is acceptable to a seller. Agents will need to be upfront with buyers that this model may not be advantageous to a seller who is hell-bent on not paying a buyer agent commission.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Built into loan:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">Consult your lenders on the legality of this. As it stands, a buyer agent commission cannot simply be tacked onto the loan. It does seem there is a roundabout way for an agent to be paid from lender credits, but it could potentially increase the buyer&#8217;s interest rate.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">The first call I made after hearing about the NAR settlement was to my lender partners, asking them to find solutions for buyer agent commissions built into the loan. In my opinion, if the trend turns to buyers paying BA commissions, commissions being built into loans will be one of the few solutions for many first-time homebuyers.&nbsp;<\/span><strong><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Agents Price Homes<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Another hot-button issue we as agents have to speak on to clients and investors is that this settlement will have little to no effect on&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/where-home-prices-grew-the-most-in-2023\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">home prices<\/span><\/a><span data-preserver-spaces=\"true\">. Multiple news outlets have made this statement, one being the largest national news podcast,&nbsp;<\/span><em><span data-preserver-spaces=\"true\">The New York Times\u2019<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;The Daily. On<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/podcasts.apple.com\/us\/podcast\/the-daily\/id1200361736?i=1000649841719\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;their episode covering the settlement<\/span><\/a><span data-preserver-spaces=\"true\">, reporter Debra Kamin, who was also interviewed on&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-201\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the BiggerPockets podcast<\/span><\/a><span data-preserver-spaces=\"true\">, asserts the settlement will \u201cmake it significantly cheaper\u201d to buy a home.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The media talking points around this idea have been something to the effect of the following:<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201c6% agent commissions have been added on top of the actual home value, artificially inflating home prices. If the 6% commission is taken away, home prices will become cheaper.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I would disagree with this statement for two reasons:&nbsp;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Agent commissions largely do not factor into how we set prices. Often, the only time this would even be part of a pricing discussion with a seller would be if they have such low&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-home-equity\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">equity<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the home that selling would cause them to have to write a check at closing after commissions and closing costs. (Many agents will take a fee as low as possible or work pro bono in this situation to help people out.). The way home prices are set ultimately is up to what the seller wants to sell it for. Agents advise sellers on sale prices based on comparable sales.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">I would disagree based on human nature and common sense. Kamin and others who support this theory are insinuating that sellers will become more altruistic with their home equity upon these rules going into place. I think the Vegas odds would favor that not happening.&nbsp;<\/span><\/li>\n<\/ol>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s the hypothetical scenario: Your neighbor sells an exact replica of your home for $500,000. You have negotiated with your agent to only pay 3% in commissions rather than 6%. Are you going to sell your home for $485,000 (3% less)? Or are you going to sell for the same price as your neighbor and keep $15,000 more for yourself?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There may be a few charitable people who take a price cut, but my guess is that will be the exception, not the rule. These rule changes may lead to home sellers paying less in commission fees, but that doesn&#8217;t equate to home prices being cheaper. In fact, if buyer agent commissions are passed on to buyers, it may make it even&nbsp;<\/span><em><span data-preserver-spaces=\"true\">more&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">expensive to buy a home, not cheaper.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor Insights From an Agent<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">These rule changes will affect agents, investors, and retail homebuyers and sellers both directly and indirectly. Here are a few potential changes on the horizon we should all be aware of.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Some sellers will offer no buyer agent commission<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">We will have to wait and see if the market trends toward sellers no longer offering buyer agent commission if it ends up being close to where it is today, or if it lands somewhere in the middle.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve asked&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flippers<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and developers if they are considering offering no buyer agent commissions, and some have said they will strategically test it out and see how it affects demand and the negotiation process. If there is still demand and they stand to profit more, they are definitely open to the idea of no buyer agent commissions.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I think whether opting out of offering a buyer agent commission is helpful or not will largely depend on the sector of the market a home falls in. With homes that could be categorized as starter homes or on the affordable end of the spectrum, buyers struggle to come up with down payment and closing costs as is, so they more than likely will not be able to offer a buyer agent commission on their closing fees.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Homes in price ranges of upper-middle-class and wealthier clients that have multiple offers may be safe offering no commission because buyers could afford to pay their own agent and make their offer even more attractive to a seller by alleviating their cost to pay a buyer agent and keep that money in their pocket.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investors need to be educated on how agent commissions could affect their offers and have a compensation plan agreed on with their agent that is in line with their investing goal.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The role of agent partners<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">That leads me to my next insight: agent partners. Frequently, investors will have one of two business relationships with real estate agents. One is having an agent partner per market who is their go-to for most of their real estate needs. They often have a contractual agreement with this agent while they are searching for properties.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The other is investors who have relationships with many agents whom they give their buy box to and say, \u201cBring me a deal.\u201d With buyer agent commissions in limbo, the days of \u201cbring me a deal\u201d without a contractual relationship may be over.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I know that if I can source a deal for an investor that meets their criteria, I have assurance the commission being offered on the MLS would be my compensation if I get under contract with the investor. With commission potentially not being offered or a point of negotiation between myself, the listing agent, and the investor, I would be less eager to hunt down deals for investors without knowing how I would be compensated.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The way the ruling is written, agents would need a written agreement even to show homes to potential buyers. Investors need to be aware that agents will be required to have these buyer agency agreements in order to show them homes and outline how they will be compensated.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For investors, I anticipate the rise of open buyer agency agreements. Agents want to complete exclusive buyer agency agreements\u2014to know contractually that they are the only agents working with a buyer as they are shopping for homes. This gives them much more assurance of compensation for the work they put in sourcing deals for an investor.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investors who still want to employ multiple agents at once have the option to outline working relationships and compensation agreements in order to be in compliance with this ruling by having multiple open rather than exclusive buyer agreements in place, formally known as open buyer agency.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I think developing great agent partnerships may be the more advantageous route for investors\u2014agents who can advise when to offer buyer agent commissions based on the sector of the market of the home you\u2019re selling or agents who will offer you a discounted rate if they know there is a flip resale or repeat business they will be compensated on in the future. Having a great agent who can help you navigate the nuances of this new ruling, who are experts in the fundamentals of buying and selling a home, and who can create win-win scenarios for themselves and investors will be paramount in this upcoming season.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The future of the NAR<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The future of the National Association of Realtors itself may be the most important thing investors need to be paying attention to. Faithful NAR members have been paying high member dues for years to have the \u201cinvisible hand\u201d of the association working on their behalf.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many Realtors are frustrated with the settlement&#8217;s outcome and the NAR\u2019s incapacity to validate the value of their members&#8217; vocation in these trials. With the settlement, not being able to see compensation on the MLS, and being required to list on the MLS, many Realtors are questioning whether they should continue their NAR membership altogether.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At first glance, this seems like it would affect Realtors rather than investors in the day to day, but we must remember that the NAR is one of the most powerful lobbying groups in the country. They are funded by both Realtors and wealthy real estate investors, enjoying the income and tax benefits derived from investing in real estate. They&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/advocacy\/nar-advocacy-wins#success\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">promote initiatives and legislation<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;that both Realtors and investors favor to encourage further investing and the buying and selling of homes.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The NAR is critical in mitigating the rise of rent control, anti-landlord policy, and further property taxation. However, if the NAR\u2019s funding dries up from nonrenewing Realtors, it may no longer have the same sway over future legislation impacting real estate investing. Investors need to consider this before encouraging their real estate agent to ditch the NAR.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">We all need to keep a pulse on how this develops once implemented in July. Lean on your industry partners and the BiggerPockets community to be informed and create win-win scenarios for yourself, sellers, buyers, and agents. All businesses experience shifts, and real estate investing is no different. It\u2019s those who are informed and hustle through times of change who thrive on the other side.&nbsp;<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_d3f7a5e723c30f673c1141b007630b5e\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_9fc6ef4594cf02d3f419b44ab93201ba\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_179e1abb5367afdfdf816c7779f6371a class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/im-a-real-estate-agent-this-is-how-i-feel-about-the-nar-case&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/im-a-real-estate-agent-this-is-how-i-feel-about-the-nar-case&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes [&hellip;]<\/p>\n","protected":false},"author":613614,"featured_media":170012,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4433,7119],"tags":[],"class_list":["post-170006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613614"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=170006"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/170012"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=170006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=170006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=170006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}