The Role of Loan Officers in the NAR Settlement
James Dwiggins, CEO of NextHome, discusses the impact of the NAR settlement on the real estate industry. He shares that companies that were prepared and ahead of the changes have been able to navigate the new rules effectively. However, many are still struggling to understand and adapt to the changes.
Dwiggins predicts a 20-40% exodus of real estate agents due to the decoupling of compensation. He emphasizes the importance of educating sellers on the benefits of not offering buyer compensation upfront and instead considering all offers based on net proceeds. He also highlights the role of loan officers in helping buyers finance agent fees when the seller is not paying.
- There may be a 20-40% exodus of real estate agents due to the decoupling of compensation.
- Educating sellers on the benefits of not offering buyer compensation upfront can lead to better net proceeds.
- Loan officers play a crucial role in helping buyers finance agent fees when the seller is not paying. Collaboration and education are key in the real estate industry to address confusion and provide clarity to consumers.
- Buyers should be educated about the changing landscape and the options available to them, including the role of buyer representation and the potential risks of being unrepresented.
- Providing value and a full-service experience to buyers is crucial in today's market, and offering additional services and convenience can differentiate agents.
- New business models, such as flat fee services, may gain market share depending on how well buyers agents explain compensation and the value of a full-service experience.
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