G
ino Filippone, a seasoned real-estate agent with Corcoran Group, was at a dinner party this spring when the topic of the NAR settlement came up. Initially, it seemed like a gloomy subject, but as they discussed its potential effects, they saw a silver lining. The new rules would shift the payment structure from sellers to buyers, giving them more power to negotiate fees and potentially weed out inexperienced agents.
Filippone and his colleagues were thrilled about this prospect. They believed that many real-estate agents had entered the profession in recent years without proper training or experience, often relying on social media presence rather than actual skills. The new rules could push out these "immature, inexperienced" agents, making way for seasoned professionals.
One analysis predicted that 1 million agents would be pushed out of the industry, but this is largely speculative. In New York, where real-estate laws are still being finalized, some brokers are more optimistic than others. Ben Jacobs, an Elliman broker, thinks the contract may not change much, while his partner Jessica Chestler believes it could bring in more clients who are now aware of their options.
Every industry relies on seasoned professionals to pick up the slack, but in real estate, this is especially true. With no degree required to become a licensed agent and video tutorials available for as little as $86.40, many agents lack the necessary skills and experience. This can lead to inefficiencies, wasted time, and lost opportunities.
Seasoned brokers like Filippone and Eric Marrus often find themselves doing extra work for inexperienced agents, who may not even know how to handle basic tasks like preparing board packages or responding to clients' inquiries. Matthew Bank, a broker with Bank Neary, has even filled out entire applications for buyers whose agents did nothing.
The inefficiencies can be costly, too. Homes that sit on the market for months due to inexperienced agents' mistakes can lose potential buyers and ultimately sell for less than they could have. Steve Clair, a Serhant agent, remembers an open house where clients asked to see the elevator, despite it being clearly listed as non-existent.
If the new rules push out inexperienced agents, it will mean fewer opportunities for seasoned pros like Filippone and Biryla to take advantage of them. At a recent listing, Biryla met a buyer and her "bestie" agent, who had no experience or mentorship. He didn't feel obligated to help her, and she ended up waiving all her contingencies and coming in over asking.
The NAR settlement may be a reckoning for the dilettante real-estate agent, but it's also an opportunity for seasoned professionals to shine. As Filippone said, "You won't have this group of immature, inexperienced, licensed salespersons."
