The landmark date of Aug. 17, 2024, has come and gone, and the real estate industry is still plugging along, despite the business practice changes mandated by the National Association of Realtors’ (NAR) commission lawsuit settlement agreement now being implemented nationwide.
In the Greater Boston area, Linda O’Koniewski, the broker-owner of Leading Edge Real Estate, described the first few days of the business practice changes as “uneventful.” But even though O’Koniewski and her agents have spent months preparing for these changes, she said the date did not come without a sense of trepidation.
“I won’t tell you that there wasn’t anxiety,” O’Koniewski said. “When we got to the close of day on Friday, we were all kind of waiting to see if it was going to be a big event and then it wasn’t. Not that individual agents might be struggling or running into things, but I haven’t seen or heard any horror stories or anything awful yet.”
According to real estate professionals, the biggest adjustments they had to make this week was to get buyers to sign buyer representation agreements and to explain to sellers that while they don’t have to offer buyer broker compensation, they will most likely see most prospective buyers ask for some help in paying their agent.
“The biggest difference is that sellers need to have the new format and commission structure explained to them fully and carefully,” said Rachael Dotson, an agent at Rhode Island-based Residential Properties Ltd. “Many are interested in the potential savings created by the new commission structure. Still, none of them want to jeopardize their sale by deterring buyers who might have to forgo representation or cannot afford to pay commission out of pocket to their agent.
“Most sellers see the value of making sure their deal closes and are open to discussions of some participation in the buyer’s agent fee.”
On the buy side, agents say they are glad…