Realogy caused a kerfuffle earlier this month when the real estate industry learned, in unsealed court filings, that brokerage president Ryan Gorman is opposed to NAR’s mandatory compensation rules.
What’s behind Gorman’s stance on compensation? What does it mean for the MLS if the rules change? How would it impact brokers and agents?
On this episode of Industry Relations, Rob and Greg discuss how the value of the MLS would shift in the absence of mandatory compensation, looking at Northwest MLS as a case study around what happens when compensation is optional.
Rob predicts government regulations to eliminate the possibility of steering and Greg reflects on how the conversation around compensation might change in a buyer’s market.
Listen in to understand why optional compensation favors big brands and find out what MLS boards, brokers and agents should be doing to plan for a world where compensation is optional.
What’s Discussed:
What’s behind Realogy’s opposition to mandatory compensation rules
How the value of the MLS would shift in the absence of mandatory compensation
How compensation is optional at Northwest MLS but most offer it anyway
What buyers’ agents would lose by getting booted from the MLS
The prevalence of steering and why Rob predicts regulations to eliminate the possibility
Greg’s take on how the conversation around compensation might change in a buyer’s market
Why optional compensation privileges bigger brands (and hurts small, independent brokerages)
How compensation works in the world of commercial real estate
Why MLS boards should prioritize investments in data and technology
Connect with Rob and Greg:
Resources:
‘Realogy Calls on NAR to Eliminate Commission-Sharing Requirement’ in Inman
‘Agents Slam Realogy’s Call to End Mandatory Nature of NAR Participation Rule’ in Inman
Rob’s Post on Realogy’s Stance Against Buyer Agent Compensation
Rob’s Red Dot Report on CoStar’s Entry to Residential Real Estate
‘Conflicts of Interest and Steering in Residential Brokerage’ in the American Economic Journal
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