Navigating New Real Estate Commission Rules: How Sunny & Associates Realty is turning Challenges into Opportunity for Buyers & Sellers
Why It Matters: The real estate industry is undergoing a seismic shift with the implementation of new commission rules on August 17th. This change is likely to challenge many agents, particularly those who fall into what Business Insider describes as the “glut of mediocre Realtors.“
These are often less experienced agents whose services may not justify the cost to homebuyers.
Industry Insight
Seasoned professionals like Joe Jennings, a Real Estate Broker with locations in South Florida, Florida Treasure Coast, and their newest location in Tallahassee, Florida, see these changes as an opportunity rather than a threat. According to industry veterans, the new rules will help weed out agents who lack the necessary skills and expertise to effectively serve their clients.
Joe Jennings explains,
“There are lesser agents who are either newer or they don’t know how to articulate, ‘This is NOT what I bring to you as a buyer’s agent.'”
However, Jennings’ extensive experience and proven ability to increase market value and revenue for his clients ensure that he can clearly communicate the value he brings to the table.
The Current Landscape
Traditionally, home sellers have been responsible for paying a 5-6% commission, which is split between the buying and selling agents. However, a recent settlement by the National Association of Realtors (NAR) now suggests that buyers should compensate their own brokers. This change means that buyer brokers can no longer rely on a share of the seller’s proceeds. Since this announcement, commissions have already started to decrease and are expected to continue to fall.
A Veteran’s Perspective
While some agents may struggle with these new realities, experienced brokers like Joe Jennings, Broker for Sunny & Associates Realty, remain confident. Jennings shares, “The real estate field has become oversaturated, and this shift will naturally streamline the industry. Those of us with a deep understanding of the market and a proven track record will continue to thrive. Our commitment to client success and comprehensive service ensures we stand out in any market condition.” Joe Jennings’ extensive experience and dedication to delivering results clearly set him apart from the competition.
By the Numbers
The number of full-time real estate agents and brokers has decreased by approximately 72,000 in 2023 compared to the previous year. This reduction coincides with a drop in the volume of home sales, a trend that analysts expect to continue in the wake of the NAR settlement.
What to Watch
Nearly half of the 2,000 agents surveyed by the Consumer Federation of America reported selling fewer than two homes in 2023. As the market adjusts, it will ultimately determine the appropriate number of Realtors needed to meet demand. Joe Jennings is well-positioned to continue serving his clients effectively, regardless of market fluctuations.
The Bigger Picture
The National Association of Realtors, the country’s largest trade organization, currently has about 1.5 million members. However, this number has decreased by more than 100,000 since 2022, reflecting the industry’s ongoing transformation.
Looking Ahead
As brokers explore ways to adapt to the new rules, innovative solutions are emerging, such as websites that help buyers and sellers navigate the changing commission landscape. Joe Jennings remains at the forefront of these developments, leveraging his expertise to ensure his clients receive the best possible service and outcomes in any market environment.
Comments from Joe Jennings
“This is a pivotal moment for the real estate industry. The new commission rules may be daunting for some, but for those of us with the experience and know-how, it’s an opportunity to demonstrate our true value. At Sunny & Associates Realty, we are committed to providing top-notch service and guiding our clients through these changes with confidence. Our focus remains on delivering results and helping our clients achieve their real estate goals.”
Joe Jennings Broker, Sunny & Associates Realty
Contact Information:
- Phone: 772-828-7989 or 954-982-4842
- Email: [email protected]
- Web: Contact Form
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Real Estate Markets:
Tallahassee, Treasure Coast, Jensen Beach, Stuart, Port St. Lucie and Vero Beach Florida.
Buying & Selling Residential Real Estate, Real Estate Rental Management along with Investment Property Buying & Selling, Tenant Management, Marketing & Sales for Rental Properties... are some of the things we specialize in to service you.
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Joe Jennings: Broker, ABR, PPM, CAM
Sunny & Associates Real Estate Of Florida
