A deep dive into the controversial spending habits of the National Association of Realtors reveals extravagant travel budgets and executive compensation that spark industry frustration. The conversation shifts to the impact of a recent settlement on buyer agent commissions, emphasizing the need for effective communication in navigating changing market dynamics. With inventory levels climbing back to pre-pandemic figures, the podcast analyzes shifting housing trends and the importance of cultivating strong client relationships in a diverse market landscape.
The podcast exposes troubling spending habits and salary discrepancies within the National Association of Realtors' leadership, raising ethical concerns and accountability issues.
Despite the NAR settlement, buyer agent commission rates remain stable around 2.59%, prompting skepticism about tracking accuracy and emerging awareness among agents.
With over half of large housing markets recovering to pre-pandemic inventory levels, buyers may finally gain more options and alleviate previous shortages.
Deep dives
Criticism of the National Association of Realtors
The episode highlights a recent exposé on the National Association of Realtors (NAR), showcasing alarming spending habits and salary discrepancies among its leadership. Bob Goldberg, the organization’s leader, received exorbitant benefits, including a substantial salary that ballooned from $1.2 million to $2.6 million, coupled with luxury travel expenses that cost millions more. These lavish expenditures have sparked outrage among the average realtor, who earns significantly less and feels disconnected from the leadership. Experts deem such compensation highly unusual for non-profit organizations, raising questions about ethical standards and accountability within the NAR.
Concerns About Buyer Agent Commissions
Recent discussions surrounding buyer agent commissions following the NAR settlement reveal surprisingly minimal changes in commission rates, hovering around 2.59% as of recent analysis. This shift prompts skepticism about how accurately these figures are being tracked, especially since many commission payments are handled outside traditional MLS reporting. As certain agents start shifting their compensation requests, it raises the question of whether a greater awareness of buyer agent compensation is emerging among real estate professionals. Observers anticipate that the market will stabilize further, making it critical to monitor trends in upcoming months, particularly in a more competitive market.
Shifts in Housing Inventory Trends
The podcast discusses significant changes in housing market inventory, with over half of the nation's largest markets now exceeding pre-pandemic inventory levels. Areas such as Huntsville, Alabama, report an astounding 85% increase, while the Northeast appears to lag behind due to existing development constraints. This shift is expected to improve inventory availability for buyers, addressing long-standing complaints about market shortages. The dynamics of these changes suggest a potential return to previous housing norms, allowing buyers more options moving forward.
The Importance of Client Experience Platforms
Listeners are encouraged to prioritize the enhancement of client experiences in real estate, particularly through the adoption of Client Experience Platforms (CEPs) like Mosaic. Unlike traditional CRMs, CEPs are designed to foster seamless interactions from search to closing, enhancing client satisfaction and retention. The hosts emphasize that elevating client experiences is crucial for generating referrals, as neglecting this aspect can lead to lost business opportunities. In an increasingly competitive market, agents are urged to invest in tools that provide significant advantages over rivals.
The Importance of Strategic Planning for Success
The conversation concludes with a focus on the necessity for real estate agents to engage in strategic planning as the year winds down. Establishing clear objectives and key performance indicators (KPIs) is vital for effectively navigating the market and ensuring ongoing success in the new year. The hosts encourage setting aside time to prepare comprehensive plans that extend beyond short-term goals, emphasizing that thoughtful preparation leads to better outcomes. By aligning business goals with personal commitments, agents can effectively balance their professional and personal lives, ultimately driving more successful transactions.
Lisa Chinatti and Tom Toole discuss “volunteer” compensation and spending habits of executive leadership at the National Association of Realtors (NAR), a Mike DelPrete article on the post-settlement stability of buyer agent commissions, inventory recovery in 54 of the 2000 largest metros, and what each one is grateful for about real estate.
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Resources:
NAR executive “volunteer” leadership compensation and spending habits: https://nowbam.com/nars-spending-exposed-six-figure-volunteer-perks/
Shifts in buyer agent commission: https://nowbam.com/no-major-shifts-in-buyer-agent-commissions-post-nar-settlement/
Connect with Byron Lazine: https://www.instagram.com/byronlazine
Connect with Tom Toole: https://www.instagram.com/tomtoole3rd/
Connect with Lisa Chinatti: https://www.instagram.com/lisachinatti/ .
Subscribe to BAM YouTube: https://tinyurl.com/aatxhaka.
Subscribe to BAM Newsletter: https://mailchi.mp/nowbam/the-best-newsletter-in-real-estate
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