The real estate sky is falling... or is it?

The Sitzer/Burnett real estate lawsuit verdict, which concluded with a jury ruling against major real estate entities and in favor of the plaintiffs, awarding nearly $1.8 billion in damages, has led to significant discussion among real estate professionals on how to adapt their practices. The case focused on alleged anticompetitive practices regarding commission fees.

Real estate agents and brokers are now preparing for potential changes in the industry. Some of the steps being considered include:

1. Re-evaluating the Leadership Role of the Brokerage / Brand: Agents should be looking for forward-thinking leadership from their brokerage and leadership teams. Forging ahead alone will quickly become a losing strategy that will see many forced to leave the industry.

2. Transparency in Client Interactions: There is an emphasis on figuring out how to communicate with potential buyers at open houses and the language used in marketing materials, ensuring compliance with new standards.

3. Understanding Legal Implications: Brokers are working with attorneys to navigate the potential legal ramifications of the verdict on daily operations.

4. Buyer’s Agency Agreements: Some brokers emphasize the necessity of buyer consultation meetings in conjunction with buyer’s agency agreements and training agents on these skills.

5. Articulating Value: It will; become non-negotiable for agents to raise their skill level and to better articulate their value to clients in the marketplace.

6. Guideline Updates: The National Association of Realtors (NAR) has updated its guidelines to allow listings that do not offer a commission to the buyer’s agent, indicating the beginning of industry-wide changes.

7. Preparation for More Changes: Brokers are preparing for a variety of outcomes as appeals and structural changes from the lawsuit's verdict are anticipated. Again, this necessitates agents to see value in aligning with forward-thinking agencies.

Overall, the industry is anticipating shifts in standard practices and is preparing for an environment that emphasizes experience, the landscape of the professional agent, transparency, and fair competition. Moving forward will only be scary without a plan. So what will you do?