Recently, two of our very own from BOLD Real Estate, Kristine Holm and Desiree Goldman, had the opportunity to speak on 97.9 The Hill, a local news station, about the impact of new rules introduced by the National Association of Realtors (NAR). Holm, Broker-in-Charge at BOLD Real Estate and President-Elect of the Orange Chatham Association of Realtors, and Goldman, a Realtor with over 25 years of experience, joined the discussion to provide insights on how these changes affect the real estate industry both nationally and locally.
Exactly one month ago, the NAR implemented new rules designed to improve transparency between homebuyers, sellers, and their agents—particularly regarding how agents are compensated. While the news suggests a major shift, Holm and Goldman assured that for our community and local housing market, the impact has been minimal.
The changes are meant to make compensation discussions more transparent between agents and clients. Previously, commission fees for buyer agents were paid indirectly by buyers through the seller, often reflected in the total price of the home. A feature in the Multiple Listing Services (MLS) used by agencies would display the commission rate. However, a 2019 class-action lawsuit from Missouri homebuyers led to a settlement with the NAR, claiming some commissions were inflated and that agents steered clients toward properties with higher payouts. Although NAR denied the allegations, they settled for $418 million and enacted new rules to clarify agent relationships.
Under the new rules, commission rates must now be negotiated directly between clients and agents. Additionally, buyers are required to sign a written agreement with their agent at the start of their home search rather than midway through or at the end of the process.
“In general, the finite minutia is shifting a little bit,” said Holm. “Practicality wise, it’s not [an adjustment.] We’re still giving the same care, due diligence, fiduciary responsibility to our clients as we’ve always designated in our contracts. It is really just a matter of adjusting mindset a little bit – more so, paperwork has adjusted.”
Holm noted that while rates were always negotiable, these changes promote more transparency about commissions. One significant change is the required written buyer-broker agreement, which must now be in place before an agent can show homes to potential buyers.
North Carolina is one of 18 states that already practice buyer’s agency, ensuring homebuyers receive representation separate from the seller’s agent. This framework means many of the changes happening at the national level were already in place locally.
“In order to cross a threshold in a home, in North Carolina or anywhere in the country,” Holm explained, “you have to have buyer agency to cross that threshold. It’s just a sooner conversation – it just means you’re having to build client trust sooner, and show value sooner, because we are all professionals.”
“We have to explain,” Holm added, “there is not an essence that has changed in how we represent our clients and how we conduct our business – it’s just a timing that has changed in North Carolina.”
For experienced real estate professionals like Desiree Goldman, the new rules reinforce transparency, a practice she has always prioritized. Goldman discussed how her relationships with clients are already clear regarding housing prospects, realistic amenities, and her fees.
“I get to make up what I say are my practices, what my fees are,” Goldman said, “and that’s the truth for everyone. Everything is negotiable – it always has been.”
Goldman recommended that homebuyers find their agent first, before beginning their home search. “Find your buyer’s agent first and then do your search,” she advised. “Because they’re going to add the context [of the community and region].”
“Looking locally, Holm says these changes are only causing a ‘little ripple’ to the housing market itself. Home inventory is still low, she says, which keeps in line with recent market trends and favors sellers. Because of that, the role a buyer’s agent can play for their clients is emphasized even more – and is now emphasized further by the new NAR guidelines.”
At BOLD Real Estate, we are committed to navigating these changes seamlessly while maintaining the high level of service our clients expect. Whether you're buying or selling a home in Chapel Hill, Pittsboro or the surrounding areas, reach out to us today to learn how BOLD Real Estate can guide you through the evolving real estate landscape and help you achieve your real estate goals.
Listen to the full episode here.
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