T
he real estate industry is still navigating the aftermath of the National Association of Realtors' (NAR) settlement-mandated business practice changes. While some professionals are experiencing confusion and chaos, preparation has been key to minimizing disruptions. Nearly two months have passed since the nationwide implementation of the changes, and brokers and industry leaders report that things are not as bad as feared.

    "This has felt a lot more like Y2K than some other stuff we were warned about but weren't prepared for," said Leo Pareja, CEO of eXp Realty. "I'd rather be overprepared and have everyone say it's not a big deal than be underprepared and stressed out."

    Industry leaders acknowledge that confusion and chaos are still present in many transactions, particularly when different Multiple Listing Services (MLSs), brokerages, and agents take varying approaches to the changes. Sharran Srivatsaa, president of The Real Brokerage, identified two primary agent camps: those trying to adapt to the new rules while still working in their old way, and those who have completely changed their business model.

    When agents from different camps interact on a deal, frustration can arise. However, brokerage leaders see this as an opportunity for agents to improve communication and share best practices. Christiana Pappas, president of The Keyes Co., noted that the Realtor community is coming together, asking questions about best practices, and having open discussions about compensation throughout the negotiation process.

    Agents are also more willing to share tips and strategies, knowing they're all learning how to deal with the changes together. Samantha Giuggio, chief operations officer at Fathom Realty, said, "There are going to be a lot of different ways to be successful with these changes moving forward, so I absolutely think that the collaborative piece of the industry is gaining strength and causing agents to communicate better."

    The revised business practices have also impacted consumers. Brokers report that sellers are not suddenly stopping buyer's agent compensation, and buyers are not refusing to sign buyer agency agreements. Instead, there's a mix of different approaches, with some sellers offering compensation, others requiring buyers to pay, and sometimes a combination of both.

    Alex Mihai, general counsel at Realty ONE Group, attributed this to how agents educate and communicate with their clients. "If the sellers are prepared for these asks, we have found that most of them are willing to consider them because the most important thing to them is to get their home sold."

    Brokerage leaders believe that requiring buyer agency agreements has added some friction for consumers but ultimately promotes transparency. They're confident that best practices will emerge as the industry navigates the "messy middle." Leo Pareja emphasized the importance of leading with education, making sure sellers understand their options and both buyers and sellers know they have a seat at the table in decision-making.

    As the industry continues to adjust, leaders are grateful for the compliance shown so far. Chad Jacobson, CEO of PrimeMLS, applauded everyone's efforts, saying, "This has been a massive, seismic change to the rule... For the most part, we've seen tremendous compliance with these new rules and so quickly as well."