More than a million people who broker homebuying and selling in America are reexamining their careers, reports The Wall Street Journal.
Last week, the National Association of Realtors settled legal claims that the real estate industry conspired to keep commissions artificially high. The settlement will likely change how much of a home sale’s price will find its way into an agent’s hands.
Realtors across the nation expressed shock that the model for buying and selling homes for the past three decades was upended. Many say they are now trying to gauge just how disruptive to their livelihoods the ruling will be.
Most fell into one of three camps: deny the business will change much, embrace new payment models in the hopes of staying profitable, or find an entirely new line of work.
There are nearly 1.5 million members of the National Association of Realtors, up from fewer than 1 million in 2012 in the aftermath of the financial crisis. Many of these agents piled into the market during the pandemic as home sales heated up while other industries shed workers.
The NAR deal, which goes into effect this summer, could hit agents who represent homebuyers particularly hard because it could reduce their commissions and dent demand for buyers’ agents altogether, says Stephen Brobeck, senior fellow at the Consumer Federation of America. It could spawn new payment models, such as flat-fee structures where buyers’ agents charge by the hour or for a specific menu of services.
