Members of the National Association of REALTORS® launched a full-court press over the past two weeks to address the question on the lips of national and local news media around the nation: What do the practice changes in residential real estate mean for consumers?
On Aug. 14 alone, four NAR members—President Kevin Sears, Vice President of Advocacy Nate Johnson, Leadership Team Member Vince Malta and Regional Vice President Jennifer Stevenson—participated in interviews that resulted in 311 airings and reached an audience of more than 10 million as part of a virtual media tour. One news story at a time, they worked to:
- Give consumers an accurate picture of the practice changes;
- Stress the importance of transparency and choice in a real estate transaction;
- Reinforce the skill, knowledge and integrity that real estate agents who are REALTORS® bring to the buying and selling public; and
- Establish facts.realtor as the single source of truth on the proposed NAR settlement and resulting practice changes.
The practice changes, which went into effect Aug. 17, are part of NAR’s proposed settlement to end class action litigation brought by home sellers concerning real estate commissions. Although the settlement doesn’t prohibit offers of compensation, they are no longer permitted on multiple listing services. In addition, before they tour a house with a buyer, buyers’ representatives are now required to get a written agreement that specifies their services and the compensation that they and their buyer have agreed to.
The Blitz
The Aug. 14 virtual media tour represents only a small fraction of NAR’s communications and outreach since the proposed settlement was announced on March 15. In the weeks leading up to the Aug. 17 practice change implementation date, in addition to communicating almost daily with members, NAR conducted media briefings; released videos, articles and podcasts to walk through the implications of the practice changes; and created consumer-focused content for use by members.
As the implementation date approached, the association’s outreach went into hyperdrive, as NAR members did interviews with a wide range of major national outlets, including The Associated Press, USA Today, Marketplace, The Washington Post, ABC’s “Good Morning America,” The Wall Street Journal, CBS Weekend News, Fox News and CNN.
In addition, Sears and NAR CEO Nykia Wright appeared on the popular “Real Estate Insiders Unfiltered” podcast, hosted by NextHome’s CEO James Dwiggins and Chief Strategic Officer Keith Robinson. And, along with the rest of NAR’s 2024 Leadership Team, the two have taken the stage at event after event to talk about the proposed settlement, the practice changes and the road ahead.
Not only that, but members across the country are amplifying NAR’s messages.
In the San Francisco Bay area, NAR Regional Vice President Jennifer Branchini talked with The Daily Journal of San Mateo, a story that led to an interview with the local CW affiliate, KRON4. Both pieces gave Branchini an opportunity to share positive messaging around the practice changes. As she told KRON4, written buyer agreements will aid in “understanding the role and responsibility that you as an agent are taking on with a buyer and also the role and responsibility of the buyer.”
In Des Moines, Iowa, broker Erika Hansen told the local ABC affiliate, We Are Iowa, that she has been educating buyers and sellers about the changes for months. “The buyer’s agreement has always been an option. It’s always been out there,” Hansen said. “It’s really meant to bring transparency as to what my duties to you are and how I’m going to help you through that process.”
Branchini and Hansen are among the nearly 800 REALTORS®, members of NAR, who have signed on as advocates—or “surrogates”—in a grassroots initiative that kicked off in May. Surrogates receive weekly updates from NAR. In turn, they share regular posts on social media, take questions from reporters, and submit op-eds to their local newspapers. Many surrogates are participating in forums and creating their own content, helping fellow agents navigate the practice changes and reinforcing the role of real estate brokerage professionals in a process that for most consumers is the most important financial transaction of their lives.
The surrogate program can leverage content produced by one member or association for the benefit of others. For example, in May, the California Association of REALTORS® President Melanie Barker posted an open letter to consumers that appeared in nearly 40 California newspapers, from the Los Angeles Times to the California edition of the Journal. That initiative has now been picked up and adapted by others, including the New York State Association of REALTORS® and the Illinois Association of REALTORS®.
Why Outreach Matters
REALTORS® who have made a commitment to educate the public and their peers are making a difference in the court of public opinion, says Sears, a broker from Springfield, Mass. “It’s critical that we tell our own story,” he says. “Not only does it humanize our hardworking members and our industry, but it helps us separate fact from fiction.”
During one five-minute segment with morning anchors in Portland, Ore., Sears was able to explain the changes, mentioning a coming law change in the state regarding written buyer agreements and setting the record straight after hearing one of the anchors mention an “industrywide” rate.
“I’ve been in business since 1994,” said Sears, “and I know, for at least the last 50 years, there has been no standard commission. Commissions have been negotiable the entire time that I’ve been in business.”
During a CNN interview, Jennifer Stevenson, a broker from Ogdensburg, N.Y., was asked by CNN anchor Victor Blackwell about whether there was a relationship between buyer broker’s compensation and the likelihood that a home would be shown or sold. Stevenson swiftly dispelled this idea, saying, “I will tell you that in 35 years of selling real estate, I have never, never made a decision on what home to show a buyer based on what commission I was receiving. When that buyer becomes a client, I owe them a fiduciary responsibility to find the best home for them at the best price and terms that they can afford—not what I will earn.”
Turning the Story
By telling their story, NAR members can help change the tenor of the conversation, says Mantill Williams, vice president of public relations and communications for NAR. Indeed, over the last two weeks, members around the country spread positive messages about the way the practice changes would empower consumers with clarity and choice. They also made clear that agent compensation was not the cause of today’s affordability woes.
“The National Association of REALTORS® tells us that the most important factor to make housing more affordable is building more inventory,” ABC News correspondent Elizabeth Schulze said in her “Good Morning America” segment. “Bottom line: Still too much competition for too few homes.”
Join the surrogate program: To sign up for NAR highlights and suggested content, email surrogates@nar.realtor.
