Navigating the New Norm of Home Buying: A Buyer Agency Survey

Gauging the Impact

When it comes to the implications of NAR’s decision on agents’ businesses, a staggering 61.9% foresaw at least a moderate effect, with 40.61% expecting a significant impact. Notably, an overwhelming 62.84% predicted that buyers might dodge the additional cost by bypassing buyer agents entirely and instead, pursuing transactions directly with listing agents. As a complicated cascade of potential changes emerges; sellers could expect to recoup some of those buyer agent fees, but with 55.27% anticipating the status quo due to buyers seeking seller compensation, it’s clear that equilibrium is far from assured.

Strategic Realignment

What do these shifts entail for real estate professionals in terms of redefining their roles and approaches? The data paints a picture of an industry at a crossroads. Despite the turbulence, 59% already require buyer agency agreements—a number that signals a proactive retention strategy. However, the timing of when these agreements are inked may require a strategic revision. Over a quarter wait until the eleventh hour or even don’t obtain it at all. This lag could leave agents exposed to certain vulnerabilities in the new landscape.

Adapting to Change

How are agents planning to adapt to these changes and protect their livelihoods? Firstly, by educating clients—buyers and sellers alike—on the new costs and procedures. Articulating the value proposition of their services is now more crucial than ever. Meanwhile, there’s a clear thrust towards early engagement with buyers, with 43.97% securing the agency agreement before home tours. Tools that automate and streamline these processes will become invaluable allies for brokers.

Survey Results

Question 1: How much of an impact do you think that the announcement by NAR will have on your business?

Answers:

• 71 respondents answered “No Impact”
• 338 respondents answered “Some Impact”
• 211 respondents answered “Medium Impact”
• 424 respondents answered “Large Impact”

Question 2: How will NAR’s announcement affect home buyers?

Answers (multiple answers allowed):

• 406 respondents answered “Buyers will have to pay their buyer’s agent themselves”
• 656 respondents answered “Buyers will go directly to listing agents to avoid paying a buyer’s agent”
• 583 respondents answered “Buyers will ask sellers to pay their buyer’s agent”
• 270 respondents answered “Buyers will find a way to finance their buyer’s agent commission”
• 213 respondents answered “Other (please specify)”

Question 3: How will NAR’s announcement affect the home sellers?

Answers (multiple answers allowed):

• 286 respondents answered “Sellers will make more money because they are only paying for one side of the transaction”
• 577 respondents answered “Sellers will make the same money because most buyers are going to ask the seller to compensate their agent”
• 278 respondents answered “Sellers will make less money because values will be adjusted since a buyer commission is being paid by buyer”
• 74 respondents answered “There will be no impact on sellers”
• 170 respondents answered “Other (please specify)”

Question 4: Do you currently use buyer agency agreements with every buyer?

Answers:

• 616 respondents answered “Yes”
• 253 respondents answered “No”
• 175 respondents answered “Sometimes”

Question 5: When do you get buyer agency signed?

Answers (multiple answers allowed):

• 459 respondents answered “At a buyer agency consultation before showing homes”
• 186 respondents answered “After showing properties”
• 297 respondents answered “Right before writing a contract”
• 180 respondents answered “I don’t get a buyer agency signed”
• 104 respondents answered “Other (please specify)”