Joan Herlong – New Realtor rules mean big changes
Greenville, June 27, 2024 – Joan Herlong, CEO of Joan Herlong & Associates Sotheby’s International Realty, expressed her views on the new rules adopted by the National Association of Realtors which are anticipated to bring significant changes in the industry. “The bottom line is, if you’re a Realtor, you’re affected,” Herlong says.
Profound Shifts in the Realtor Landscape
These regulations which come into effect from mid-August require “buyer agents to have a signed Buyer Agency agreement BEFORE showing a property listed by an outside realty company.” This rule, according to Herlong, will likely thin the ranks among buyer’s agents. “Because buyers will inevitably begin asking more questions of agents on the front end, many of those agents will just opt out altogether,” she says.
Furthermore, Herlong predicts a more Darwinian landscape on the horizon for real estate, where, “only the strongest, most experienced buyer agents will survive.”
A Win-Win for Everyone?
These anticipated changes could potentially benefit everyone involved. Herlong explains, “As a listing agent, I’ve encountered so many buyer agents who are just along for the ride. They’re almost fungible, interchangeable. But with the new rules, buyer agents will have to be on top of their game as buyers come to the table with more questions, more leverage.”
Changes in Buyer Agent Compensation
From August, compensation for buyer agents will no longer be listed on the MLS or on sites such as Zillow. “Buyer agents can no longer expect listing agents to ‘make sure they get paid,'” adds Herlong. She goes on to say that “compensation is not up to the listing agent. However, an adept buyer’s agent can navigate these revised rules without added out of pocket expense to their buyer client, and help them get the very best deal.”
The CEO of Joan Herlong & Associates Sotheby’s International Realty believes these new rules hold a promising future for the real estate industry. Not only will they encourage buyer’s agents to be more professional and accountable, but they will also empower buyers with more information, ultimately leading to more informed decisions.
