{"id":177799,"date":"2024-09-25T13:24:24","date_gmt":"2024-09-25T19:24:24","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=177799"},"modified":"2024-09-25T13:24:27","modified_gmt":"2024-09-25T19:24:27","slug":"one-month-after-nar-changes-this-is-how-some-agents-have-changed-their-business","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/one-month-after-nar-changes-this-is-how-some-agents-have-changed-their-business","title":{"rendered":"One Month After the NAR Rule Changes, These Agents Told Us How Their Business Has Changed"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">It&#8217;s been <\/span><span data-preserver-spaces=\"true\">a little<\/span><span data-preserver-spaces=\"true\"> over a month since the groundbreaking rules regarding agent commissions stipulated in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-920\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a $418 million settlement between the DOJ and NAR<\/span><\/a><span data-preserver-spaces=\"true\"> (National Association of Realtors) took effect. The main points of the agreement are:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Homes listed by agents on multiple listing services (MLS) databases will no longer be allowed to include the buyer agent&#8217;s compensation.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Buyers can negotiate their agent&#8217;s pay and formalize it in a signed contract.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Now that the dust has had time to settle, BiggerPockets contacted agents around the country to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/im-a-real-estate-agent-this-is-how-i-feel-about-the-nar-case\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">get their take<\/span><\/a><span data-preserver-spaces=\"true\"> on the settlement and see how it affects their business. A few common themes resonated with everyone we spoke to, with most feeling that experienced agents should be OK<\/span><span data-preserver-spaces=\"true\">, while<\/span><span data-preserver-spaces=\"true\"> newer agents <\/span><span data-preserver-spaces=\"true\">who are more<\/span><span data-preserver-spaces=\"true\"> dependent on finding buyers for business could find this new world challenging.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s what they told us.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ilan Bracha, <\/span><a class=\"editor-rtfLink\" href=\"http:\/\/www.bracha.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Bracha Group<\/span><\/a><span data-preserver-spaces=\"true\">, Corcoran, New York City<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">One of the main things the new regulations bring is more paperwork in disclosures, which are very important because they back you up as a real estate professional. The actual transaction doesn&#8217;t change, but now you have to jump through more hoops, so what is customary in buying and selling real estate will change.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many agents will have different experiences based on their clients and geographic location. For example, here in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=New%20York-Newark-Jersey%20City%2C%20NY-NJ-PA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">New York<\/span><\/a><span data-preserver-spaces=\"true\">, we have many high-net worth buyers from overseas. They will have no problem paying a 5% to 6% commission.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Agents will get paid if there is a demand for a property. The new rules will hurt people who don&#8217;t work professionally and want to cut corners.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ian Hoover, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/deaconhoover.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Deacon &amp; Hoover Real Estate Advisors<\/span><\/a><span data-preserver-spaces=\"true\">, Pittsburgh, Pennsylvania<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">It has <\/span><span data-preserver-spaces=\"true\">not changed anything<\/span><span data-preserver-spaces=\"true\"> regarding obtaining business; the changes are how we communicate with new clients once we <\/span><span data-preserver-spaces=\"true\">get connected<\/span><span data-preserver-spaces=\"true\"> with them.<\/span><span data-preserver-spaces=\"true\"> We must have more in-depth conversations upfront to explain the process and how it works, now and into the future.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has your marketing changed?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">It has <\/span><span data-preserver-spaces=\"true\">not changed<\/span><span data-preserver-spaces=\"true\"> how we market.<\/span><span data-preserver-spaces=\"true\"> There are <\/span><span data-preserver-spaces=\"true\">some<\/span><span data-preserver-spaces=\"true\"> internal changes regarding how we communicate compensation, but that does not impact our marketing plans.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How do you think it will affect your revenue, and what are you doing to ensure the effect is not detrimental?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Occasionally, buyers will want to represent themselves, <\/span><span data-preserver-spaces=\"true\">especially<\/span><span data-preserver-spaces=\"true\"> if the process <\/span><span data-preserver-spaces=\"true\">is not<\/span><span data-preserver-spaces=\"true\"> explained<\/span><span data-preserver-spaces=\"true\"> effectively.<\/span> <span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> will be a one-off and should not decrease revenues too much. &nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How do you see the industry changing <\/span><span data-preserver-spaces=\"true\">long term<\/span><span data-preserver-spaces=\"true\"> due to the new commission structure?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">I <\/span><span data-preserver-spaces=\"true\">honestly<\/span><span data-preserver-spaces=\"true\"> like the changes.<\/span> <span data-preserver-spaces=\"true\">It makes us <\/span><span data-preserver-spaces=\"true\">as<\/span><span data-preserver-spaces=\"true\"> real estate <\/span><span data-preserver-spaces=\"true\">professionals<\/span><span data-preserver-spaces=\"true\"> explain our value effectively, which has been a problem, so <\/span><span data-preserver-spaces=\"true\">hopefully<\/span><span data-preserver-spaces=\"true\"> the consumers will start to value us like they do their attorney or accountant.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Essie Williams, <\/span><a class=\"editor-rtfLink\" href=\"http:\/\/www.essiewilliams.randrealty.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Howard Hanna\/Rand Realty<\/span><\/a><span data-preserver-spaces=\"true\">, Morris Plains, New Jersey<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The commission change is another challenge amidst the numerous responsibilities and distractions of being a Realtor. <\/span><span data-preserver-spaces=\"true\">Negotiating commission is always<\/span><span data-preserver-spaces=\"true\"> a <\/span><span data-preserver-spaces=\"true\">tedious <\/span><span data-preserver-spaces=\"true\">job<\/span><span data-preserver-spaces=\"true\">, especially explaining to the potential seller that they can pay the full commission (listing and buyers) or only the listing commission.<\/span><span data-preserver-spaces=\"true\"> If the seller pays both commissions, there\u2019s always a wider audience of buyers, as you have to have some buyers who say to the agent, \u201cDon&#8217;t bring me houses that I have to pay the commission.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The approach to potential buyers has not changed; the creative ways\/options the buyer has to pay the commission, such as paying in cash, using the seller\u2019s concession, adding in the mortgage, or not waving the inspection, may change. However, it has not affected how deals <\/span><span data-preserver-spaces=\"true\">are found<\/span><span data-preserver-spaces=\"true\">; the only real change is that the buyer must sign a buyer\u2019s agreement before the agent shows the listing.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Buyers always need a Realtor\u2019s expertise. My reputation as <\/span><span data-preserver-spaces=\"true\">someone<\/span><span data-preserver-spaces=\"true\"> competent, knowledgeable, and diligent always generates <\/span><span data-preserver-spaces=\"true\">great<\/span><span data-preserver-spaces=\"true\"> referrals, and open houses remain the No. 1 lead generator.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has your marketing changed?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">My marketing <\/span><span data-preserver-spaces=\"true\">hasn&#8217;t changed<\/span><span data-preserver-spaces=\"true\">, as I work <\/span><span data-preserver-spaces=\"true\">mostly<\/span><span data-preserver-spaces=\"true\"> with developers.<\/span><span data-preserver-spaces=\"true\"> I conduct social media polls to determine which way to drive the process.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">This change makes it slightly more difficult to get buyers if they have to pay, but in all aspects of the market, it should <\/span><span data-preserver-spaces=\"true\">not affect anyone&#8217;s<\/span><span data-preserver-spaces=\"true\"> revenue, adjusting, staying focused, and abreast of the changes.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Real estate is an ever-changing market with interested eyes on it, making it challenging, fun, and rewarding.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Bob Kamangar, <\/span><a class=\"editor-rtfLink\" href=\"http:\/\/www.bobkamangar.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Christies International Real Estate Sereno<\/span><\/a><span data-preserver-spaces=\"true\">, Los Altos, California<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The confusion around commissions will mean that agents <\/span><span data-preserver-spaces=\"true\">will have to<\/span><span data-preserver-spaces=\"true\"> make a stronger case for their qualifications and what they bring to the table to <\/span><span data-preserver-spaces=\"true\">both<\/span><span data-preserver-spaces=\"true\"> buyers and sellers.<\/span><span data-preserver-spaces=\"true\"> With buyers in particular, who now have to sign a representation agreement covering how much commission will <\/span><span data-preserver-spaces=\"true\">be paid<\/span><span data-preserver-spaces=\"true\"> to their agent and by which side, I plan on explaining to them that there is an inherent conflict of interest in real estate, i.e., price, terms of the offer, understanding the condition of the property, and the disclosures, inspections, etc.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It would be unwise not to have independent representation through their <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> agent in making such an important decision. So<\/span><span data-preserver-spaces=\"true\"> I <\/span><span data-preserver-spaces=\"true\">plan on promoting my having a contractor license and actual development experience, being a former attorney, and being local with 28 years of experience earlier in the conversation with buyers and in my marketing material.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For experienced agents, this might <\/span><span data-preserver-spaces=\"true\">not pose a challenge<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> But for inexperienced agents, it could be <\/span><span data-preserver-spaces=\"true\">difficult<\/span><span data-preserver-spaces=\"true\">.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has your marketing changed?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">I am running ads <\/span><span data-preserver-spaces=\"true\">specifically geared<\/span><span data-preserver-spaces=\"true\"> to buyers, pointing out the conflict of interest in having the listing agent also be their agent and the importance of <\/span><span data-preserver-spaces=\"true\">having<\/span><span data-preserver-spaces=\"true\"> independent representation with their <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> qualified professional.<\/span><span data-preserver-spaces=\"true\"> Dual agency is allowed in California, but this practice of &#8220;double-ending&#8221; transactions is wrought with conflict and can lead to lawsuits. In my opinion, <\/span><span data-preserver-spaces=\"true\">it should be eliminated<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In representing sellers on my listings, I advise sellers that <\/span><span data-preserver-spaces=\"true\">in order to<\/span><span data-preserver-spaces=\"true\"> attract the most buyers and avoid lawsuits after the sale, it is wise to have buyers represented by their <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> agent and <\/span><span data-preserver-spaces=\"true\">to<\/span><span data-preserver-spaces=\"true\"> offer commission to the buyer&#8217;s agent.<\/span><span data-preserver-spaces=\"true\"> Should my sellers decide to offer a commission to the buyer&#8217;s side, we are no longer allowed to market that through the <\/span><span data-preserver-spaces=\"true\">MLS<\/span><span data-preserver-spaces=\"true\">,<\/span><span data-preserver-spaces=\"true\"> but are<\/span><span data-preserver-spaces=\"true\"> allowed to have that in our marketing brochures, discuss it at open houses, and even have it on the signpost on the property.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How do you think it will affect your revenue, and what are you doing to ensure the effect is not detrimental?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Experienced agents should be <\/span><span data-preserver-spaces=\"true\">fine<\/span><span data-preserver-spaces=\"true\">. We get most of our business from existing clients, <\/span><span data-preserver-spaces=\"true\">network<\/span><span data-preserver-spaces=\"true\"> of friends and professionals, and <\/span><span data-preserver-spaces=\"true\">involvement in our communities<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There will be instances<\/span><span data-preserver-spaces=\"true\">, of course,<\/span><span data-preserver-spaces=\"true\"> where a buyer will decide not to have any agent represent them or, more likely, have the listing agent also be their agent.<\/span> <span data-preserver-spaces=\"true\">But <\/span><span data-preserver-spaces=\"true\">I think<\/span> <span data-preserver-spaces=\"true\">over time,<\/span><span data-preserver-spaces=\"true\"> things will settle down, and we will have commissions agreed upon through the offer process, whether the seller is paying part or all of the buyer-side commission or if the buyer is paying their agent the whole agreed-upon amount.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">No one works for free, and <\/span><span data-preserver-spaces=\"true\">commissions will still <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-do-realtors-get-paid\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">be paid<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">There will <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> be a lot more paperwork and explaining to get there.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How do you see the industry changing <\/span><span data-preserver-spaces=\"true\">long term<\/span><span data-preserver-spaces=\"true\"> due to the new commission structure?&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Two things have to <\/span><span data-preserver-spaces=\"true\">be considered<\/span><span data-preserver-spaces=\"true\"> in answering this loaded question:<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">In my opinion, <\/span><span data-preserver-spaces=\"true\">antitrust<\/span><span data-preserver-spaces=\"true\"> laws <\/span><span data-preserver-spaces=\"true\">were misapplied<\/span><span data-preserver-spaces=\"true\"> by clever lawyers<\/span> <span data-preserver-spaces=\"true\">to<\/span><span data-preserver-spaces=\"true\"> our industry.<\/span><span data-preserver-spaces=\"true\"> Commissions have always been negotiable, and the market has always had agents charging different <\/span><span data-preserver-spaces=\"true\">amounts of<\/span><span data-preserver-spaces=\"true\"> commissions. Agents throughout the land were not conspiring to set commissions at a certain level. Each <\/span><span data-preserver-spaces=\"true\">one<\/span><span data-preserver-spaces=\"true\"> of us negotiates one-on-one with each seller and buyer, and this will continue to be the case as before.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">People use agents in selling and purchasing real estate because these transactions are complicated; there are disclosure requirements, market analysis, marketing decisions, and <\/span><span data-preserver-spaces=\"true\">know how<\/span><span data-preserver-spaces=\"true\">;<\/span> <span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> at many levels <\/span><span data-preserver-spaces=\"true\">sellers<\/span><span data-preserver-spaces=\"true\"> and buyers <\/span><span data-preserver-spaces=\"true\">don&#8217;t<\/span><span data-preserver-spaces=\"true\"> want to <\/span><span data-preserver-spaces=\"true\">deal<\/span><span data-preserver-spaces=\"true\"> with each other directly.<\/span><\/li>\n<\/ol>\n\n\n\n<p><span data-preserver-spaces=\"true\">As with any law that is more form over substance, and because people need and want representation on both sides of a transaction, we will continue to see commissions paid for both the buyer and seller side of the transaction, and those who want more experienced agents to represent them will agree to compensate them accordingly.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Rennard Clayton, <\/span><a class=\"editor-rtfLink\" href=\"http:\/\/rclayton.cbhre.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Coldwell Banker Hearthside<\/span><\/a><span data-preserver-spaces=\"true\">, Lehigh Valley, Pennsylvania<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The new commission structure is <\/span><span data-preserver-spaces=\"true\">actually<\/span> <span data-preserver-spaces=\"true\">not new<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Commissions have been negotiable since I entered real estate in 2009. However, the change has made commissions more transparent to buyers and sellers.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The most significant change is that agents nationwide must have a signed buyer&#8217;s agency contract <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\"> showing a prospective buyer a home. Therefore, <\/span><span data-preserver-spaces=\"true\">the commission must be discussed<\/span><span data-preserver-spaces=\"true\"> at the beginning of the relationship. <\/span><span data-preserver-spaces=\"true\">I now make it a point to have buyer consultations<\/span><span data-preserver-spaces=\"true\">, either<\/span><span data-preserver-spaces=\"true\"> via Zoom or in person<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\"> showing homes.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has your marketing changed?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">There<\/span><span data-preserver-spaces=\"true\"> has <\/span><span data-preserver-spaces=\"true\">been no change to my marketing<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">I feel that<\/span> <span data-preserver-spaces=\"true\">the commission conversation should be reserved<\/span><span data-preserver-spaces=\"true\"> for those who have expressed a desire to work with me.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I work with buyers and sellers. My thought is that experienced agents who focus on continued education have the opportunity to increase their income. <\/span><span data-preserver-spaces=\"true\">Commission<\/span><span data-preserver-spaces=\"true\"> will be less standard, and agents who can articulate their worth will make more.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The <\/span><span data-preserver-spaces=\"true\">biggest<\/span><span data-preserver-spaces=\"true\"> change that I foresee is the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/there-are-too-many-real-estate-agents\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">number of agents<\/span><\/a> <span data-preserver-spaces=\"true\">will decrease<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> New agents tend to work primarily with buyers. Now that buyers may have to pay the agent, they will become more selective. Many will choose to work with experienced agents, thus making it <\/span><span data-preserver-spaces=\"true\">tough<\/span><span data-preserver-spaces=\"true\"> for new agents to get experience and build a career.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Shalini Reddy Sadda, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/shalinisf.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">City Real Estate<\/span><\/a><span data-preserver-spaces=\"true\">, San Francisco, California<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has the new commission structure changed the way you find\/approach potential clients and find leads?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">With the new commission structure, first and foremost, it&#8217;s important to educate my potential clients [about] what all of this means and how it impacts them.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As for me, I <\/span><span data-preserver-spaces=\"true\">am prioritizing <\/span><span data-preserver-spaces=\"true\">on<\/span><span data-preserver-spaces=\"true\"> where I invest my time and resources.<\/span><span data-preserver-spaces=\"true\"> My approach to business has always been client-focused and fostering long-term relationships. <\/span><span data-preserver-spaces=\"true\">In addition, I am <\/span><span data-preserver-spaces=\"true\">putting<\/span><span data-preserver-spaces=\"true\"> more <\/span><span data-preserver-spaces=\"true\">focus<\/span><span data-preserver-spaces=\"true\"> on my referral networks to expand my reach.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How has your marketing changed?&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">In this day and age<\/span><span data-preserver-spaces=\"true\">, I am a big proponent of digital marketing, and I will continue to market <\/span><span data-preserver-spaces=\"true\">in<\/span><span data-preserver-spaces=\"true\"> this platform.<\/span><span data-preserver-spaces=\"true\"> I am picking up the phone more to call my clients and being proactive about this new change and what it entails. [I\u2019m] doing in-person events with my clients to get more face time.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I am also marketing more to my referral networks and sphere of influence. Consistency is <\/span><span data-preserver-spaces=\"true\">key<\/span><span data-preserver-spaces=\"true\"> in marketing, and it&#8217;s <\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\"> to continue investing in the business on various platforms.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How do you think it will affect your revenue, and what are you doing to ensure the effect is not detrimental?&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">We will have to work even harder. As commissions change, I am finding creative ways to provide more value without compromising the quality of service.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How do you see the industry changing <\/span><span data-preserver-spaces=\"true\">long term<\/span> <span data-preserver-spaces=\"true\">as a result of<\/span><span data-preserver-spaces=\"true\"> the new commission structure?<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The top-performing agents will continue to be successful in this changing market. Commissions have always been negotiable, and we have always had some agents who work on a discounted commission structure, so this new rule isn&#8217;t out of the ordinary. Ultimately, you get the service you pay for.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The one thing we will see with the new change is between buyers and buyers agents, where we will see various tiers of commissions\u2014for example, flat-fee, fixed-commission, a combination of buyers and sellers paying the commission. Only time will tell what the <\/span><span data-preserver-spaces=\"true\">true<\/span><span data-preserver-spaces=\"true\"> norm will be.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_516314806a9289ff0ae8c0fe6c2ec969\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_eff9312036814873d5d8e5e0e1625557\" 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_02a524911a4a5a8a61f6f75b2545f43a 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\/one-month-after-nar-changes-this-is-how-some-agents-have-changed-their-business&#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\/one-month-after-nar-changes-this-is-how-some-agents-have-changed-their-business&#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>It&#8217;s been a little over a month since the groundbreaking rules regarding agent commissions stipulated in a $418 million settlement between the DOJ and NAR (National Association of Realtors) took [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":177803,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-177799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/177799","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\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=177799"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/177799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/177803"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=177799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=177799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=177799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}