T
he National Association of Realtors' (NAR) announcement of changes to broker commissions earlier this year sparked widespread panic among agents and brokerage heads. However, when the changes took effect on August 18, the industry breathed a collective sigh of relief as deals continued to close and agents remained paid. Mike Pappas, CEO of Keyes Family of Companies, likened the reaction to the Y2K scare, where fears of a digital crash proved unfounded.

    At The Real Deal South Florida Real Estate Forum, panelists discussed the challenges facing the industry, including low barriers to entry and unscrupulous actors. Jason Haber, co-founder of American Real Estate Association and Compass agent, argued that the easy process for becoming a licensed realtor creates a large population of undereducated brokers who bring down the industry's reputation.

    Haber also suggested revising the NAR's Clear Cooperation Policy, which requires agents to list homes on the Multiple Listing Service. However, proponents argue that abolishing the rule would allow industry giants to create secret listings, hurting housing fairness and smaller brokerages. Michael Pappas disagreed, stating that removing the policy would break down the system of fairness and equality.

    Despite a tougher market environment due to higher interest rates and new condo laws, panelists emphasized the importance of continued expansion. Beth Butler, Compass' senior regional director of operations and marketing, noted that there's more opportunity in a challenging market for newer agents who can't compete with seasoned professionals. Pappas added that growth is essential, saying "if you don't grow, you'll die."