With the NAR recently being sued for taking advantage of sellers, there has understandably been some uncertainty between real estate professionals and regular people trying to buy or sell their houses.
As a company that routinely buys and sells houses, we’re here to tell you why you shouldn’t worry, and to also give you some pointers as to what to look for in a real estate agent or realtor.
Here’s what makes a good realtor/agent*
*realtors are just agents who have paid dues to the NAR and follow their code of conduct, this does not necessarily mean one is more qualified than the other
In terms of listing a property, you’ll want a realtor who provides:
- High-quality marketing material
This could look like professional photography, promotional videos, drone shots, etc. - Property staging
When showing off your house to buyers, it’s important to present it in a way that helps them visualize what their dream home could look like, which needs furniture and other home furnishings to help paint your house in the best light. - Repair/Maintenance services
This could be anything from cleaning services to repairs to further increase the value of your home. - Realistic expectations and transparent communication
Oftentimes realistic expectations, accountability, and good communication can avoid setbacks and miscommunication. A realtor who has your best interests in mind and communicates well will make selling your house a lot smoother.
In terms of buying a property, you’ll want a realtor who has:
- Excellent interpersonal skills
A realtor should be your investigator, working to find the details that are not made public, but which make all the difference in helping you find the property that is right for you. You should expect realtors to investigate the situation for you and ask leading questions that will provide information beyond the surface level to help you decide if you want to buy a property. - Good research skills
A good realtor should understand the numbers provided and be capable of doing their research to provide you insights that help you make a purchase decision. - Comprehensive understanding of contingencies
To avoid wasting time and creating extra work, your realtor needs to understand what contingencies to use and when to use them.
Why shouldn't I worry about the lawsuit against the NAR?
All parties can benefit!
- Home sellers: this landmark ruling could mean that they will not be responsible for paying the commissions of both the listing and buying brokers; thus letting them keep more of their money from selling their home.
- Home buyers: since the commission paid to an agent is typically lumped into a home price, if they were reduced or were to become more negotiable, home prices could drop as well.
- Real estate professionals: If the lawsuit succeeds, competition among agents and realtors will increase, leading to higher-quality services, innovation, and differentiation.
- Although the NAR has been under fire for various controversies these past few years, this does NOT mean ALL real estate professionals subscribe to the business practices set by the NAR.
- Many honest, passionate, and qualified agents and realtors are disappointed in the NAR and are cutting ties with them.
- These guys, in particular, are fighting the NAR and trying to set a new standard for realtors.
If there’s one thing you can take away from the NAR lawsuit, it’s that it was a blessing in disguise.
Why?
In exposing the NAR's practices, the lawsuit has highlighted the service gaps present in the real estate industry, making it apparent to home sellers and home buyers everywhere that the service they get from their agents and realtors may not be adequate based on the price they paid for it. This exposé could promote healthy competition among real estate professionals, which in turn, gives customers the better service they deserve.
Even if the lawsuit doesn't succeed, it still presents itself as a reminder to home sellers and buyers to do their due diligence and make sure they know what is owed to them. The fact that many people were disenfranchised enough to bring a class-action lawsuit speaks volumes about the potential gaps in service quality in real estate.
Stay safe out there and remember that the lawsuit against the NAR doesn’t mean real estate professionals and customers can’t have a mutually beneficial relationship. There are always going to be qualified and passionate real estate professionals ready to help you sell or buy the property of your dreams! It's just up to you to discern whether or not they're right for you!
We wish you the best of luck with your real estate endeavors and encourage you to reach out to us if you have any real estate questions, concerns, or requests.
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