Editor’s note: Robert Reffkin will be one of 120+ speakers at RISMedia’s 36th Annual CEO & Leadership Exchange, September 4-6, in Washington, D.C. Learn more and register to attend at https://events.rismedia.com/ceo-exchange-2024.
Having grown up as the son of a real estate agent, I know firsthand that this business is built on change.
As the first broker of record of Compass, I’ve seen markets go up and down.
More change is coming to our industry this week, stemming from the settlement agreement announced in March by the National Association of REALTORS® (NAR).
While there’s been plenty of speculation about how the rule changes set for August 17 will impact the industry, one thing is certain to me: Consumers will always want to have a skilled, dedicated professional by their side to help them fulfill their dream of owning a home and finding their place in the world.
In fact, buyers are engaging agents now more than ever. In 2023, 89% of buyers used agents, up from 75% just 20 years ago.
That’s because consumers recognize the value agents bring to the process: They help buyers and sellers navigate a highly complicated, multi-party transaction with a maze of forms and complex paperwork. They connect clients with reputable mortgage lenders, appraisers and other professionals in their networks. They guide clients through the stressful twists and turns of home inspections, and through it all, agents ensure that their clients’ interests are represented in pricing, negotiation and closing.
Another thing that won’t change anytime soon is our need for a strong advocate.
I am a firm believer that we need effective representation now more than ever to speak on our behalf and leverage our strength in numbers to promote our profession and champion the benefits of homeownership for all.
There’s a reason NAR has been a steadfast pillar of support, advocacy and education for real estate professionals and property owners for over a century. Of course, there are times when we disagree on individual policies or strategic direction—that is natural, and even healthy. But, those disagreements are all in the spirit of advocating for our respective stakeholders, of which there are many. And, NAR has shown that over time, they can produce tangible results for their constituents.
For one, NAR ensures that our collective voice is heard in legislative and regulatory discussions that directly impact our livelihoods and the housing market as a whole.
Look no further than NAR’s recent “all-hands” effort to change a rule set by the Department of Veterans Affairs that previously prohibited veteran borrowers from paying a fee or commission to their real estate agent. The VA announced in May it would amend its policy to allow veterans to compensate their agents directly.
During more unprecedented times, NAR played a key role in the passage of the CARES Act during the COVID-19 pandemic, which provided much-needed relief to homeowners and real estate agents. The association’s aggressive efforts sustained the real estate industry through the pandemic, protecting real estate as an essential service, and ensured that independent contractors and small business owners in real estate were eligible for Paycheck Protection Program (PPP) loans and unemployment benefits. I couldn’t imagine what would have happened to our industry if, without the efforts of NAR, real estate professionals were not declared as essential workers and were unable to show property through the most challenging moments of the pandemic.
NAR’s advocacy was also instrumental in securing the mortgage interest deduction during the 2017 tax-reform debates. This deduction is a crucial financial benefit for homeowners, making homeownership more affordable and attractive.
It is exactly these brass-tacks, practical positions that advance the interests of our colleagues and their clients.
From pushing for industry policies to providing extensive training on ethical compliance and promoting diversity and inclusion within our ranks, NAR remains committed to advancing the interests of real estate professionals and homeowners alike in real time and in impactful ways.
Surely, more change is to come to our industry. As we look to the future, it is imperative that we join forces in our support for the profession and the consumers we serve.
By investing in NAR’s consumer awareness initiatives, educational programs and advocacy efforts, we can leverage our collective strength, advance the rights for homeowners, and uphold the values of integrity, professionalism and service that we aspire to define us.
Changes come and go. The market will inevitably come back. Interest rates are bound to fall. Supply will return. And I believe that regardless of the path ahead, our industry will be stronger if we work together in support of NAR.
