DOJ’s Desire to Decouple Commissions: Embracing Change

On February 16, 2024, the Department of Justice (DOJ) suggested a big change in the way houses are bought and sold. They are looking into whether the way agents get paid breaks any competition laws. This might mean stopping the practice where sellers pay the buyer's agent's fee. They are also considering a rule that would stop agents from sharing their commission across the country, which means a seller's agent wouldn't be allowed to pay a buyer's agent.

This change is called the decoupling of commissions.

Decoupling of commissions in real estate means changing how agents get paid. Right now, when a house is sold, the seller usually pays the commission for both the real estate agent who listed the house and the agent who helped the buyer. Decoupling would mean that this system changes. Instead of the seller paying both agents, buyers might have to negotiate and pay their own agent's fee. This is what the Department of Justice (DOJ) is suggesting should happen.

Some people in the real estate world are worried about this change. It's a big shift from how things have been done since the beginning of time. Agents at JohnHart, like others, might be feeling nervous about what this means for our future. But, it's also a chance for us to stand out from other agents. We should see this change as a positive challenge and embrace it.

One reason to stay positive is that JohnHart has introduced six new streams of income. This shows we're thinking ahead and ready to adapt. As long as we stay focused and aim to improve, we can handle any changes that come our way. If you're with JohnHart, your future is bright, but it's important to act now and make the most of the initiatives we launched during the Revolution.

Let's talk more about the DOJ's suggestion. They think if buyers start to negotiate and pay their own agent's fees, it will lead to better deals and more creative services from agents. Some buyers might pay a flat fee or an hourly rate instead of a percentage of the house price. This could make things fairer because the fee would be based on the service provided, not just the price of the house.

The DOJ also says this change won't mean buyers have to pay more upfront. Buyers could ask the seller to pay their agent's fee as part of their offer on the house. This way, the cost could still be covered in the sale, just like now when sellers help buyers with closing costs.

But, there's a downside. If buyers have to start paying their agents directly, it might be harder for first-time buyers or those with less money. They already struggle to save for a down payment. Adding another cost could make buying a home even harder.

This is where our focus at JohnHart comes in. We need to create more inventory. With these changes, buyers might choose to go directly to the listing agent. This means we have a chance to work with more buyers and sellers.

Yes, these changes are tough. But they also give us a chance to grow. By focusing on getting better and reaching more clients, we can come out ahead. JohnHart is already preparing us for this future with new ways to earn. Our job is to keep building our skills and finding more houses to sell.

In the end, the real estate world is changing. But change isn't always bad. It's a chance to do things differently and maybe even better. Let's welcome these changes with open arms and make the most of the opportunities they bring.