At Inman Connect Las Vegas, July 30-Aug. 1 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
As the commission lawsuits and settlements continue to unfold, decisions about brokerage models, fee structures, training and increased transparency have come to the forefront for both agents and brokers. The ability to explain to clients how the process works and how a Realtor’s compensation is paid is, for some agents, a new skillset to master.
The latest developments include NAR’s proposed practice changes going into effect in August and an attempt by buyer plaintiffs — worried about being left out in the cold — to overturn or delay the implementation of the proposed settlements. All in all, we’re in our lawsuit era and developments will continue to unfold until all of the legal wrangling has received final approval.
As the real estate industry, market reach and technology all continue to evolve, brokerage models change along with them, providing opportunities for agents and their clients to find customized solutions to economic, market and transaction challenges. Along with that much change comes the opportunity to evaluate your current model and see what works for the road ahead — and what you’ll want to leave in the dust.
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Brokerage model isn’t the same as business model
From a financial perspective, while we frequently think of brokerage models as defined, in part, by their compensation structure at both the agent and broker levels, that isn’t the best way to define brokerage models. A 100 percent commission brokerage can be an indie or a franchise. An a la carte menu of services can exist at a boutique brokerage or at a large virtual brokerage company.
One of the things agents have been evaluating as they look ahead to a post-settlement industry is the way they’re compensated and the way they find clients. For those who…