3min chapter

Industry Relations cover image

Commission Lawsuit Aftermath: What Brokerages Need To Do

Industry Relations

CHAPTER

The Future of Buyer Agents

The expectation, the great fear is if anything happens, then vast majority of buyers will stop using a buyer agent. "I think again, it's how the industry responds to this is going to be is what's going to matter," he says. 'If we don't get better at the timing of when to ask for these agreements, you know, the communication of their value of everything else, absolutely were fucked'

00:00
Speaker 2
So then really it doesn't change if it's a heart injunction either because I'll also get appealed and stayed and so on. But
Speaker 1
again, like that's what I get to. It's like at the beginning and again, there's models right now where you can just, you don't have to use, you know, you can pay less commission and everything else. And then if you're if we're extrapolating here that nothing really changes after this lawsuit. I mean, I think the changes, there's more transparency, which is a good thing. I think we if we needed somebody to kick us and he asked to make that happen as an injury. Absolutely. Yeah. But I mean, why fuck? What are we going through then? What's the, where's the pony here?
Speaker 2
Exactly. Greg, if it's just about, well, if we do this, nothing really changes except more transparency. I can't imagine NAR and
Speaker 1
all these guys are going to fight it that hard.
Speaker 2
So the expectation, the great fear is if anything happens, then vast majority of buyers will stop using a buyer agent. I mean, I think that's the great concern. Right. Because if you look at other countries, Australia, UK, you know, whatever, that the government and the lawyers always cite other countries, they don't do buyer agents. Buyers aren't out there hiring agents to help them. They hire an attorney maybe,
Speaker 1
right? But they're not using buyer agents and that's obviously the great fear. Yeah. And I think again, it's how the industry responds to this is going to be is what's going to matter. First of all, there's a lot of inertia in the way this is done now. From what I hear a lot of countries, you know, and I think this is something Charlie said, actually, is that this system is the envy of the world, right? And now it's up to the industry not to blow it. Okay. So this thing comes down. Now we have to more and more prove our worth than we had before because this is going to be something contractual that they really hadn't done before. So I think it's up the industry whether or not it's just going to be, you know, attorneys doing it, right? So it's still, I mean, I don't think we're, you're as far as you say, nothing changes. It's all about the execution afterwards, right? So because there is a real threat. If, if agents continue, you know, if we don't, if these agents don't get better at the timing of when to ask for these agreements, you know, the communication of their value of everything else, absolutely were fucked. Right. So, and that could go, that could facilitate this. But what we have on our side now is the inertia of the way the model has been working in the U.S. forever, over 100 years N.A.R. is, right? And then hopefully the behavior of these agents moving forward to keep that going as long as they can. But, you know, it's not, it's not guaranteed for sure. Okay.

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