FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--The biggest change to hit the real estate industry in more than 30 years is being greeted with mixed reactions by the audience most impacted. Before the changes went into effect on August 17, seller’s agents and buyer’s agents would split a commission based upon the final price of the home sale. But now, buyer’s agents' commissions depend on what they negotiate with buyers themselves, who never before had to pay their agents directly. This all changed because of a landmark federal court ruling, which compelled the National Association of Realtors to upend the long-existing system.
Here’s the pulse of the profession, according to a new Kaplan survey of 300 buyer’s agents*:
- Not Sold: Only 20 percent of buyer’s agents surveyed say the new system, which shifts the burden of how buyer’s agents get paid to the buyer’s agent themselves through negotiating with the client, is “a positive change,” with 56 percent saying it’s not, and the remaining 23 percent neutral. One buyer’s agent with a negative outlook said, "Buyers typically don’t even have enough money for their closing costs, much less now having to pay a buyer's agent."
- Ready to Sell: Counterintuitively, 72 percent of buyer’s agents consider themselves “prepared” to navigate the new commission landscape, with 28 percent saying they aren’t prepared.
- Perseverance: The new system has yet to cause any career path changes of heart among buyer’s agents, the survey found. Only 4 percent of them say it will cause them to exit the industry; 66 percent said this change will not result in them exiting. The remaining 30 percent were undecided. One buyer’s agent shared, “In real estate, you face challenges with every transaction. This is just another challenge to maneuver.”
Toby Schifsky, vice president of real estate education, Kaplan, said:
“Remember that these commission changes were thrust upon buyer’s agents by the courts, not drafted by the grassroots of the industry, so it’s no surprise that Kaplan’s survey found that most are unhappy with what’s just been implemented. The new structure complicates their commission structure, and may actually lead to hurting buyers, many of whom may now believe they can’t afford an agent. This adds volatility to an already uncertain housing market. At the same time, our survey found that most agents feel prepared for these changes. While we think many are prepared because they’ve taken courses and are seasoned negotiators, they may discover it’s more challenging than they originally guessed. Two things are for sure: The level of professionalism will rise on the buyer’s side of transactions, and it’s going to be a fierce market. This is not business as usual. One survey result that also stands out is that 30 percent of buyer’s agents are undecided if the change to the commission system will result in them calling it quits. That’s a pretty big number and represents a fair amount of indecision among agents. These findings underline that we in the real estate education industry have a responsibility to ensure that agents know what the changes mean and how to quickly overcome any obstacles they may encounter.”
Kaplan recently launched a Buyer Agency Professional™ (BAP™) designation to help buyer agents succeed as they face a drastically different real estate business model.
Contact russell.schaffer@kaplan.com to speak with a real estate expert at Kaplan.
*The survey was conducted by Kaplan by email in July 2024 of 300 industry professionals who passed the real estate licensing exam and currently work as buyer’s agents.
About Kaplan
Kaplan, Inc. is a global educational services company that helps individuals and institutions advance their goals in an ever-changing world. Our broad portfolio of solutions help students and professionals further their education and careers, universities and educational institutions attract and support students, and businesses maximize employee recruitment, retainment, and development. Stanley Kaplan founded our company in 1938 with a mission to expand educational opportunities for students of all backgrounds. Today, our thousands of employees working in 27 countries continue Stanley’s mission as they serve about 1.2 million students and professionals, 15,000 corporate clients, and 3,300 schools, school districts, colleges, and universities worldwide. Kaplan is a subsidiary of the Graham Holdings Company (NYSE: GHC). Learn more at kaplan.com.
Note to editors: Kaplan is a subsidiary of Graham Holdings Company (NYSE: GHC)
