A survey of hundreds of real estate agents shows commission-based “mentoring” used to be rare. After the August 17 deadline, it could become ubiquitous — but in the hands of buyers.
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It’s hard to get a large group of real estate agents to agree on anything – but on this topic, they tell a pretty consistent story.
Before the NAR settlement, it was still rare for agents to “steer” buyers away from listings that offered low buyer’s commissions. Many agents even said that regardless of the ethical issues involved, it wasn’t worth the agents’ time.
But with new NAR settlement rules set to take effect at MLSs across the U.S. later this week, there’s a consensus in the industry that so-called “bootstraps” are about to become more common — even if it’s more up to the buyer. It is not guided by agents.
- less than 13% Agents who responded to the Inman Intel Index in late July said listing buyer compensation packages revealed by the MLS “occasionally impact” the recommendations they provide to clients.
- Within this relatively small group, more than half It means that they only pass the commission information to the buyer customers and let them make a decision.
- only 5% of agents said they had engaged in something akin to secret “coaching,” such as not sharing listings with clients based on MLS information or preventing them from making homes available.
In a monthly survey of 611 real estate professionals, Intel set out to examine the true popularity of mentoring, how mentoring actually affects agent-client relationships, and what agents and brokers say the practice is likely to do under the new NAR How will it develop.
Read the analysis below for the full findings.
What does “steering” actually look like?
As of Saturday, MLSs across the country will no longer include the compensation field in listing messages, eliminating the first place buyer’s agents used to be able to confirm commissions.
To understand what this change might mean for dealers, Intel first sought to understand what dealers said they were getting from the field.
As you work with buyers throughout your real estate career, do you regularly check the MLS to confirm a listing’s buyer’s compensation?
- 61% — Yes, but it has never affected the way I advise clients
- twenty three% — No, I don’t think it’s necessary to check
- 13% — Yes, it sometimes affects the way I advise clients
- 3% — No, I think the check is wrong
We see the vast majority of agents— nearly three quarters — said they regularly review the MLS payroll area. At the same time, very few—— Only 1 out of 20 people – say they use this information to guide customers without their knowledge.
so What value does the agent receive? Compensating the market by owning an MLS?
The agent gives a long list of answers, often selecting multiple options. Here are some of the most popular options among all agencies.
- 39% of agent respondents told Intel that the compensation field on the MLS reduces the need to contact the listing agent for the same information.
- twenty one% of agents said it helped them understand how different brokerages handle commissions.
- 20% of agents say payroll areas better help them track changes in the market over time.
- 19% of agents said it helped them better understand the near-term revenue prospects for their business.
broker said They check from time to time Here are some of the main reasons MLS obtains listing commission information.
- 13% of all agents said they did not conduct inspections because knowing the buyer’s commission “doesn’t help me serve my clients.”
- 7% of all agents said it didn’t matter to them whether the buyer’s commission was 2%, 3% or something else.
- 5% of agents said the amount offered by the seller was standard in their market, so they didn’t feel the need to check.
Interestingly, among the small group of agents who said they didn’t check the MLS payroll field for purely ethical reasons, nearly all agreed that the NAR settlement will make steering more common in the future, not less.
One agent who responded anonymously to the survey said the new conditions were “terrible for buyers and the agents they work with”.
“Of course, with buyer guidance, more guidance will occur,” the agent wrote. “In fact, I’ve never heard of any reversals in the past due to the large commissions being offered. Now, it happens every day at the buyer’s direction.
To explain why, Intel asked agents and brokers how they plan to confirm this information in the new environment.
framework for the future
So what will the steering actually look like when Saturday’s changes take effect?
In the short term, buyer agency agreements appear to be the new standard. If the seller refuses to pay the buyer’s fee, it will be the buyer who is affected, not their agent.
But that still leaves some unanswered questions. Without an MLS compensation field, how will an agent verify what fees, if any, the seller is willing to bear?
Brokers essentially choose one of two main paths in their brokerage policies or guidelines:
- 43% Brokerage leaders surveyed by Intel in late July said their buyer’s agents would be encouraged to contact listing agents before clients make an offer on a home.
- at the same time, twenty four% ’s brokerage leaders recommend a less direct path: Submit an offer that stipulates that the seller will pay the full commission, and then learn the seller’s position as part of normal negotiations.
It should be noted that as of late July, just weeks before the changes took effect, Nearly one-fifth of brokerage leaders Tell Intel that they are still waiting for more information before developing policy or guidance on how buyer’s agents should confirm seller commission concessions.
One potential solution that some MLSs have discussed is including a “seller concession field” where sellers can indicate that they are willing to pay all or part of the commission.
But most real estate agents Intel surveyed don’t see it as a viable option — at least not yet.
When buyer’s premium is no longer included in the compensation field for MLS listings, how do you plan to confirm this information in future listings?
- 60% — If possible, I plan to contact the listing agent to confirm the buyer’s commission before my client offers on the home
- twenty four% — I plan to encourage my client to submit an offer that requires the seller to pay my full buyer’s premium and then understand the seller’s position as part of normal negotiations
- 4% — I’m not planning on contacting the agent for this information, but I will be looking at the MLS listing for other indications of willingness to pay a buyer’s commission (possibly in the seller’s franchise area)
- 1% — I do not intend to contact the listing agent or encourage my buyer clients to require sellers to pay a buyer’s premium
- 10% – other
It’s clear that under the new rules, most buyer’s agents will feel the need to confirm the portion of commission the seller is willing to pay – even if they previously didn’t feel the need to look for that information when it was available on the website.
According to the July survey, brokers expect this will play out largely through the MLS rather than through seller franchise fields or other solutions.
Methodological Notes: Inman of the month Intel index poll Conducted from July 22 to August. On December 5, 2024, 611 responses were received. The entire Inman reader community is invited to participate, and rotating, randomly selected community members are prompted via email to participate.. Users answered a series of questions related to their self-identified real estate industry—including real estate agents, brokerage leaders, lenders, and proptech entrepreneurs. Results reflect the opinions of the participating Inman community, which may not always align with the opinions of the broader real estate industry. this poll Do this once a month.
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