86% of Real Estate Agents Expect NAR Lawsuit Consequences to Spur Industry Exits

A survey of 516 U.S. real estate agents found that, despite growing acceptance of recent commission changes, most remain apprehensive of industry-wide repercussions.

ST. LOUIS, Sept. 24, 2024 /PRNewswire/ -- 86% of agents believe the commission structure changes, which took effect last month following a lawsuit against the National Association of Realtors (NAR), will lead to agents leaving the industry, according to new research from Clever Real Estate, a St. Louis-based real estate company.

The settlement most notably determined that sellers are no longer obligated to pay for the buyer's agent's commission, shifting the responsibility to buyers to determine how to compensate their own agent.

Nearly half of agents surveyed (48%) report a more pessimistic outlook on their career since the settlement was approved, while only 16% feel more optimistic.

Nearly two-thirds of real estate agents (64%) still oppose the recent changes to the commission structure, down slightly from earlier this year (70%). Agents used the word "confused" to describe their feelings about the settlement more than any other term.

Nearly three-quarters of agents (72%) predict a negative overall impact on the industry, while only 20% expect a positive outcome.

Despite a 12-point drop since April, 76% of agents still think the changes will negatively impact first-time home buyers. In contrast, 53% of overall buyers surveyed support the settlement.

Additionally, two-thirds of agents (66%) believe buyers will be more hesitant to use an agent, but only 22% of homeowners and potential buyers say they'll be less likely to do so.

Meanwhile, 67% of homeowners support the changes, though only 26% admit to having a strong understanding of the lawsuit and resulting settlement.

The vast majority of homeowners (79%) and buyers (71%) believe real estate agents should be required to disclose their commission rates upfront. In addition, more than half of homeowners (57%) and buyers (59%) support government regulations of commission rates.

Among homeowners planning to sell in the next year, 63% are more likely to do so now, given the reduced obligation to pay the buyer's agent commission.

In response to these pivotal industry shifts, 83% of agents plan to experiment with new business strategies, with 35% saying they'll avoid working with sellers who do not provide concessions to help buyers cover agent fees.

Read the full report at: https://listwithclever.com/research/realtor-commission-changes-2024

About Clever Real Estate
Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 3,000+ customer reviews. Since launching in 2017, Clever has reached $11.4 billion in real estate sold, matched 138,000+ customers with realtors, and saved consumers over $170 million on commission fees. Clever's network spans 15,000 agents across all 50 states.

Please contact Alyssa Evans at [email protected] with any questions or to arrange an interview.

CONTACT:
Alyssa Evans
Clever Real Estate
[email protected]
315-690-1518s

SOURCE Clever Real Estate