{"id":6441,"date":"2022-07-16T19:37:36","date_gmt":"2022-07-16T23:37:36","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6441"},"modified":"2022-07-16T19:37:38","modified_gmt":"2022-07-16T23:37:38","slug":"back-to-the-future-for-residential-real-estate","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/07\/16\/back-to-the-future-for-residential-real-estate\/","title":{"rendered":"Back to the future for residential real estate"},"content":{"rendered":"\n<p>If you consider the roots of brokerage in residential real\nestate, you can imagine how much the business of selling homes has\nchanged.&nbsp; Unlike today, the first real\nestate brokers were independent. Their \u201clistings\u201d were exclusive and\nproprietary.&nbsp; Buyer agents didn\u2019t exist\nuntil well over one hundred years later.&nbsp;\nAnd at the beginning, there was no broker cooperation on listings and commissions.&nbsp; <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i2.wp.com\/dankrell.com\/blog\/wp-content\/uploads\/2022\/07\/kcm-infographic-1657374358-1.png?fit=525%2C1014&amp;ssl=1\" alt=\"Real Estate\" class=\"wp-image-6443\" width=\"267\" height=\"515\"\/><figcaption>Real estate consistently voted as best investment<\/figcaption><\/figure><\/div>\n\n\n\n<p>Of course, everything changes over time. Brokerage\ncooperation began with loose networks of brokers who agreed to help sell each\nother\u2019s listings.&nbsp; Early multiple listing\nservices evolved out of those local networks.&nbsp;\nAnd as the real estate industry adopted emerging technologies, the MLS concept\nevolved into the listing service we know today.&nbsp;\n<\/p>\n\n\n\n<p>The MLS framework promoted the evolution of real estate\nbrokerage as well.&nbsp; Centralizing and\nstandardizing listed homes made home searching easier for brokers and their\nrespective buyers.&nbsp; <\/p>\n\n\n\n<p>Brokerage cooperation allowed agents and brokers to sell others\u2019\nlistings to buyers.&nbsp; Up until the early\n1990\u2019s, all agents and brokers represented the home seller.&nbsp; However, it\u2019s likely technology and a robust\nMLS fostered buyer agency and dual agency.&nbsp;\n<\/p>\n\n\n\n<p>It seems as if it wasn\u2019t until the advent of buyer agency\nwhen people began questioning agency and compensation.&nbsp; Prior to buyer agency, the commission was\nnegotiated between the listing broker and the home seller.&nbsp; Selling agents (those who brought the buyer)\nwere a subagent of the seller, so it made sense that the commission would be\nshared with subagents.&nbsp; <\/p>\n\n\n\n<p>The commission structure of today\u2019s listing agreements seems\nto be an antiquated carryover, where commissions are \u201cshared\u201d with sub agents\nand exclusive buyer agents.&nbsp; <\/p>\n\n\n\n<p>As an aside, it\u2019s common, if not required, for a buyer agent\nto disclose to their clients their compensation amount. If the coop commission\nis less, they will likely collect it from their client.<\/p>\n\n\n\n<p>Currently, real estate agent and broker compensation is\nundergoing a meticulous and exacting scrutiny inside and outside of the\nindustry.&nbsp; During the last two decades,\nthere have been legal challenges to the industry\u2019s status quo on residential\nagent and broker compensation.&nbsp; However,\nrecent legal proceedings have gained traction such that a growing number of\nreal estate brokers are embracing a possible future with \u201cdecoupled\u201d commission.<\/p>\n\n\n\n<p>When change is afoot in the housing industry, there is a lot at stake for real estate brokerages.\u00a0 Although the outcome to the current challenges of real estate compensation is uncertain, the result may be that residential real estate brokerage comes full circle, where buyer and seller compensation are respectively exclusive.<\/p>\n\n\n\n<p> By Dan Krell<br \/>Copyright \u00a9 2022   <\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"http:\/\/www.copyscape.com\/plagiarism-detector\/\"><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/banners.copyscape.com\/images\/cs-bk-3d-234x16.gif?resize=234%2C16\" alt=\"Protected by Copyscape Web Plagiarism Detector\"\/><\/a><\/figure>\n\n\n\n<p> <a rel=\"noreferrer noopener\" href=\"http:\/\/dankrell.com\/blog\/disclaimer\/\" target=\"_blank\">Disclaimer<\/a>.\n  This article is not intended to provide nor should it be relied upon  \nfor legal and financial advice. Readers should not rely solely on the  \ninformation contained herein, as it does not purport to be comprehensive\n  or render specific advice. Readers should consult with an attorney  \nregarding local real estate laws and customs as they vary by state and  \njurisdiction. Using this article without permission is a violation of  \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you consider the roots of brokerage in residential real estate, you can imagine how much the business of selling homes has changed.&nbsp; Unlike today, the first real estate brokers were independent. Their \u201clistings\u201d were exclusive and proprietary.&nbsp; Buyer agents didn\u2019t exist until well over one hundred years later.&nbsp; And at the beginning, there was &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/dankrell.com\/blog\/2022\/07\/16\/back-to-the-future-for-residential-real-estate\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Back to the future for residential real estate&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1195,115,1209,13,402,66],"tags":[1196,857,663,797,828],"class_list":["post-6441","post","type-post","status-publish","format-standard","hentry","category-agent-commission","category-buyer-agent","category-listing-agent","category-real-estate","category-real-estate-agent","category-real-estate-brokerage","tag-agent-commission","tag-buyer-agent","tag-listing-agent","tag-real-estate","tag-real-estate-brokerage"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1FT","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=6441"}],"version-history":[{"count":2,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6441\/revisions"}],"predecessor-version":[{"id":6444,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6441\/revisions\/6444"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}