We should all remember the impatient child, sitting in the rear seat of the car, whining, and complaining, and asking “are we there yet?” We probably all said it as children and remember our own children doing the same thing.

We all went through a significant upheaval in our business as the new rules from NAR went into effect in August of this year. While we had months to prepare and learn, when the day arrived, it seemed as if the wheels came off the bus. Many claimed that it was nonsense, some felt it was an overreaction, while others seemed to acknowledge the obligations and work through it.

Now, about 90 days later, are we done? Have we seen the total impact of what has changed? Sadly, we are not done and have not yet seen the full impact, yet.

On August 17, 2024, we stopped offering compensation from the listing agent to the buyer’s agent in the MLS, as a “unilateral offer of compensation”  That was one change that resulted from a settlement between NAR along with several major brokerages, with the Justice Department and several judges on anti-trust suits, claiming that NAR and the companies conspired to fix prices for real estate services. Rather than fight the charges in a long-drawn-out court battle, NAR offered a settlement, without admitting guilt, while offering practices changes including the offer of compensation. Another part of that change was the requirement of all Realtors to establish a written representation agreement with every client.

What is next? First, a quick observation. AAR has revised and/or developed several forms to assist us in requesting and obtaining compensation from the listing agent, the seller or the buyer. From only one, two of them, or all 3.

Schools and instructors started presenting classes and teaching how to use the 4 key forms; the Commission Agreement Between Brokers (CABB), Seller Compensation Addendum (SCA) the revised Exclusive Buyer Broker Agreement (BBEEA) and the Buyer Broker Agreement to Show Property. (BBSP). Within a few weeks of classes being taught, the Designated Brokers began forming their own policies of how and when to use the forms, which often was different from what the students learned in class, and what the other brokers decided to do.

As a result, rather quickly, the brokers have seemed to retreat to neutral corners and have come out swinging. Meaning, they are asking their agents to unlearn what was provided in many classes and do it their way.

Any broker is entitled to create policies and rules as they see fit, for the operation of their brokerage.

That said, we have heard about some tussles between agents, when one agent, under their broker’s rules, uses a form or forms in such a way that the other agent has different instructions from their broker. In most cases the differences were resolved with simple communication. Yes, communication. Let’s go back to talking to each other.

That said, we will still see more challenges as many more agents start getting involved, who might have been on the sidelines for the past few months.

Another upcoming change will be the structure and operation of the local, state and national associations. There is a great deal of pressure on all fronts for transparency, as many groups are questioning the long-standing tradition of obtaining MLS access through an association, how the broker interacts with the associations, and how the licensees obtain all their services.

NAR is under significant pressure after some internal upheaval, and critical news about excessive payments by NAR executives for lavish parties, transportation, meals, gifts, travel and more. As leadership tries to address the concerns, the rumblings on the ground are getting louder and louder.

When the annual dues bills come out in December, the NAR economist estimated a loss of about 8% of membership. With 1.6 million Realtors, that would equate to about 128,000 Realtors not renewing their membership. Some outsiders with good internal knowledge place that estimate closer to 12%.

With the loss of revenue of maybe 160,000 members not renewing, along with the pressure of other members for an explanation of the lavish expenses, we might see some major upheaval in the national association. Combine that with the pressure from the local and state associations creating their own MLS, contract forms and class of members, thus leaving NAR, we can anticipate some significant changes which will result in choices many licensees will face in the upcoming year.

In summary, we are not there yet.