Trends 2025: The ‘New Way’ to make the new rules work for you
The NAR settlement has changed the way compensation is communicated, but getting real with clients can ensure that deals get done and agents get paid.
Editor's note: Since 2006, the Swanepoel Trends Report has provided in-depth research and analysis to help leaders understand the forces shaping residential real estate. This exclusive series of excerpts highlights each trend featured in the 2025 report, which was released in November 2024.
Winning Strategies for a Post-Settlement World: The post-settlement way of doing things has to be more consumer-centric to reduce risk exposure. Embracing a fresh perspective and rethinking strategy around cooperative compensation and concessions can help brokers and agents communicate their ongoing value in this new environment.
The following excerpt, taken from T3 Sixty's 2025 Trends Report, explores one of four operating principles created to assist practitioners as they do business in the "New Way," where listing agents no longer set compensation for buyer brokers.
Both seller's agents and buyer's agents have a role to play in educating consumers.
Seller's agents
Home prices and interest rates are extraordinarily high for most buyers. This impacts a seller's ability to transact, so it is critical to educate the client about this market reality.
Help sellers understand the realistic situation of specific buyers in their market. Help them understand how buyer costs affect what they can afford and how seller concessions let them finance the fees.
Some buyers may not need a concession for their buyer agent fee to transact. This should be part of the conversation with sellers too.
Buyer's agents
In the New Way, buyer's agents should present prospective buyer clients with a comprehensive consultation akin to what they have traditionally provided sellers. They should be careful and thoughtful in differentiating their offerings and value from other buyer agents.
In preparation for this consultation, develop materials and scripts that clearly communicate value and outline services and fees. This should include details about buyer's agents specific experience, skills and other attributes that support value.
Some of the specialized services buyer agents could call out include:
Identifying common condition issues and special inspections.
Recognizing red flags during showings.
Managing an appraisal gap.
Understanding structural issues uncovered during an inspection.
Knowing zoning regulations or HOA restrictions that may prevent a buyer from doing something they want to do.
Handling scenarios with multiple offers.
Structuring a backup offer.
Designing creative financing including rent-to-own, wrap-around mortgage, bridge loans, etc.
Include information up front about negotiating with sellers related to closing costs and concessions, which can include the buyer agent fee, specific repairs, rate buy downs and other fees. Explain this as part of the process of getting a deal done; emphasize how leveraging the agent's experience and expertise can help the buyer.
Brokers should also develop a company standard practice for these consultations and coach and train their agents on how to present them to buyers.
Read the full chapter for more details about how to make the New Way work for you in 2025. Digital and printed copies of the 2025 Swanepoel Trends Report are available for purchase at T3 Trends.
Note: T3 Sixty and Real Estate News share a founder, Stefan Swanepoel.