214: Buyer Brokerage: Preparing for Changes in The Real Estate Industry

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Buyer Brokerage Changes: What You Need to Know

The real estate industry is shifting fast, and buyer brokerage changes are at the center of major legal battles. Lawsuits are challenging how agents earn commissions, and these cases could force a complete overhaul of buyer representation. Agents must prepare now to protect their businesses and adapt to new compensation structures.

Lawsuits Are Reshaping Buyer Representation

Two major class-action lawsuits—Sitzer/Burnett and Moehrl—aim to change how buyer agents get paid. These lawsuits argue that requiring listing brokers to offer buyer agent commissions violates antitrust laws. If the courts rule against NAR and large brokerages, commission-sharing in MLS systems could disappear. The Department of Justice has also reopened its investigation into NAR’s policies, increasing pressure on the industry.

How Buyer Brokerage Changes Will Impact Agents

If these lawsuits succeed, buyer agency agreements will likely become mandatory. Agents will need to secure written agreements with buyers before showing homes. Instead of relying on listing-side compensation, agents may need to negotiate fees directly with buyers. This shift could lower buyer agent commissions and change how buyers afford representation—potentially requiring commissions to be rolled into mortgages.

Prepare Now to Stay Competitive

Agents who adapt early will thrive. Start refining your buyer consultation process and clearly communicate your value. Create a buyer presentation that outlines what you offer beyond opening doors. If buyer brokerage changes take effect, agents who build trust and demonstrate expertise will secure more business.

Stay Ahead of the Industry Shift

The real estate industry is evolving, and waiting isn’t an option. Learn about the lawsuits, adjust your business practices, and prepare for new compensation models. The agents who take action now will lead the future of buyer representation.

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