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I'm sure you've been following the current lawsuits about commissions within the real estate industry. In case you need clarification, one of the main objectives of the Department of Justice is to “decouple” commissions, meaning removing the presumption that a seller’s agent will pay for both the buyer and seller agent commissions. Instead, agents would be paid by the party they represent.
This would likely increase the number of buyers going directly to the listing agent in hopes of working out a deal on commission, even though the buyer would potentially miss out on proper representation and having their own interests prioritized. The shift may also push many part-time agents and struggling agents out of the industry.
The agent who can articulate their value, educate on the process, and have a proven track record of advocating for their clients will win through this change.
The #1 thing you can start doing to prepare your business is to become thoroughly educated on how real estate commissions currently work. Stop advertising buyer services as “free” or that the seller simply just pays for them. Show your value and your expertise by breaking down who pays what and why. The way you educate buyers on how it works will end up being the way they understand the process.
The #2 thing you can do is start building up your brand recognition and reputation. At the end of the day, most consumers don't know how commissions work, nor do they really care. They still need to buy and sell houses. What they WILL care about is how you will serve them better than anyone else can. We likely have a couple of years before any changes are set in stone, if at all. This is PLENTY of time for you to build relationships, ask for reviews, and create a high-end reputation for your business and brand. Your online and in-person image is and will continue to be critically important to your overall success.
The #3 thing you can adjust is how you operate your buy-side business. Perfect the art of a buyer consultation, know how to talk through buyer representation paperwork, and stop showing 5+ houses before doing both of those things. Show one house, do a buyer consult, and educate your clients on the process and compensation so there is no doubt in their minds that they want you in their corner.
Remember, success leaves clues and numbers speak volumes. The more proof you have of a successful business, the more people will trust that you have what it takes to represent them at the highest level possible.
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