We’ve all seen the influx of headlines resulting from the National Association of REALTORS’® (NAR) proposed settlement announcement. Many reports hypothesize a significant shake-up of the real estate market. Instead of the settlement flipping the industry on its heels, we see an alternate and more compelling story at play. We believe the future is promising, providing an opportunity to reiterate the value of REALTORS and offer even more clarity to our clients.

NAR settlement: Fact vs. Fiction

What we know to be true about the proposed settlement is that NAR is set to pay $418 million to homesellers over approximately four years. The organization and its affiliates will also be released from liability in 2022 of $2 billion or below for the types of claims brought in these cases on behalf of homesellers related to broker commissions.

Beyond the finer points of the proposed settlement seems to be where misinformation has seeped into the discussion, the future handling of commissions as a prime example. Reports state that, moving forward, commissions are negotiable. Some sources have gone as far as to claim a projected 25-50% reduction in future commissions. These notions are incorrect, and more importantly, breed confusion and distrust of Realtors among future homebuyers.

Amid all this chaos, how can we change and correct the narrative? The answer is simpler than we think.

Realtor value reaffirmed

Part of the value-add we offer our clients is to dispel misinformation. We can help them navigate confusion over commissions and other misnomers by remaining educated, up to date on emerging information and clear in our conversations.

We can reference NAR’s many available resources, which include The Facts for REALTORS®. This webpage is stocked with relevant information and strategies for REALTORS to employ. For instance, one article includes specific and accurate language regarding commissions: “Rules throughout the Multiple Listing Service (MLS) Handbook and NAR policy that expressly prohibit MLS, associations and brokers from setting or suggesting any set commission amount.”

It’s also an opportune time for Realtors to reiterate our invaluable position as the homebuyer’s fiduciary advocate. We have the advantage of calling upon a wide and diverse pool of industry partners – inspectors, lenders and contractors, as examples. As such, we as professional Realtors are one of the only resources available to homebuyers who can assemble the right team of experts to prioritize our clients’ needs.

Price of bypassing professional guidance

As REALTORS, we take a vested interest in our client’s welfare. We have been trained to help find the best first home, the perfect dream home and accommodate budgets as best we can. For that reason, we want to protect clients from any and all obstacles that can impede their home-selection and homebuying goals.

Just as the NAR proposed settlement offers a unique opportunity to share the benefits Realtors provide, it’s also vital for consumers to know what happens if they forego the expertise of a buyer’s agent.

Not only can homebuyers end up paying significantly more trying to purchase a home on their own, but they could also find themselves in legal/contractual entanglements, paying for repairs they didn’t know about and losing the ability to negotiate any number of things (closing costs, closing timelines, repair costs and more).

Bottom line: The assumption that consumers will save money by eliminating Realtor commissions can yield long-term — and even dire — consequences to their quality of life.

Positive position

Now is not a time to incite worry or fear. This is a time to re-establish trust and redefine healthy partnerships with clients.

NAR President Kevin Sears expressed it well when he recently shared: “This will be a time of adjustment, but the fundamentals will remain: buyers and sellers will continue to have many choices when deciding to buy or sell a home, and NAR members will continue to use their skill, care and diligence to protect the interests of their clients.”

We mirror this sentiment at Phoenix REALTORS®. We pride ourselves on continuing to be a member-focused organization that has — and will continue — to provide the most effective tools, resources and programming to help REALTORS operate to the best of their abilities and protect their clients’ interests.

Sheryl Bowden is president of the Board of Directors of Phoenix REALTORS®, a member-first organization serving more than 11,000 real estate sales professionals in the Valley. More at PhoenixRealtors.com.