Real estate’s moment of opportunity
From agent pay to association changes, a new report identifies 20 ways the industry can improve itself — and help homebuyers and sellers in the process.
Key points:
- The Opportunity Report is the follow-up to the landmark DANGER Report of a decade ago.
- Topics covered include Clear Cooperation, agent pay and association membership.
- Stefan Swanepoel, the report author and a leading voice in the industry, says the opportunities are “designed to inspire transformative action.”
From danger to opportunity: It's not just some upbeat saying, it's a literal description of the real estate industry's current era.
There have been epic highs and painful lows over the past decade: lawsuits, institutions in turmoil, the rise of teams, new brokerage models. Some of these were foreseen by The DANGER Report, an in-depth analysis of risks assembled by strategist, best-selling author and Real Estate News founder Stefan Swanepoel.
Now, Swanepoel has written his follow-up to that landmark report. Instead of focusing on the "black swans" that have already descended, it looks to brighter days ahead.
The Opportunity Report, available today, approaches the most significant challenges facing the industry and reframes them through the lens of what is not just possible, but necessary for the residential real estate world to thrive.
"You are in the fortunate position to be part of this pivotal moment in the industry," Swanepoel writes in the preface. "This report presents numerous opportunities designed to inspire transformative action."
A closer look at the biggest opportunities
The report describes 20 specific opportunities for those in residential real estate — from agents and brokers to NAR, state and local associations, and MLSs — and they include some of the hottest topics in real estate today.
Clear Cooperation: Industry leaders are divided on the Clear Cooperation Policy, which requires listings to be posted on the MLS within a business day of when they are publicly marketed. Some think it should be eliminated, others say it needs to be preserved (though perhaps with adjustments). The Opportunity Report challenges NAR to choose a path and "work to unite the industry behind this vision."
"Supporters of the CCP typically focus on homebuyers, while those advocating for its removal emphasize the interests of home sellers," the report states. "The larger opportunity for the industry lies in uniting to ensure that consumers, brokers, and agents continue to have access to transparent real estate marketplaces, which underpins the dynamic U.S. real estate industry and is envied worldwide."
Decoupling buyer and seller agent compensation: Offers of buyer agent compensation have been removed from the MLS as part of the NAR deal to settle commissions lawsuits. But cooperative compensation hasn't gone away entirely, though the report says that it should: "Agents must embrace the decoupling of the previous fee structure and position themselves for future success."
And that success could lead to bigger paydays for the best agents, versus simply accepting a blanket offer: "For skilled buyer agents who offer great value to their clients, including the negotiation skills that save their clients money, it is quite possible that this change leads to them effectively giving themselves a raise," the report stated.
Voluntary association membership: The pushback against the "three-way agreement" that requires Realtors to join national, state and local associations is increasing, via lawsuits and messages to NAR from within the Realtor association ecosystem.
But allowing "optional membership across all association levels will create a healthier, more committed, and transparent environment, where associations become more relevant and responsive to their members," The Opportunity Report states.
Not that it will be easy, the report acknowledges. "This marks a significant shift in association thinking, which has traditionally focused on headcount. It will require a reconfiguration of the Realtor structure, value proposition, and operational model."
Homeownership is an opportunity too
The Opportunity Report also looks to the American Dream of homeownership, which has been hindered by stubbornly high interest rates and a lack of available housing. The report challenges the industry to lead the way in making homeownership a more affordable dream through a mix of efforts that include advocacy, cost reduction and technology.
"Improving homeownership affordability is not only a moral obligation, it is a crucial strategy for promoting financial stability, reducing inequality, encouraging social mobility and strengthening our communities," the report states. "The real estate industry has a tremendous opportunity to champion this cause."