2024 Swanepoel Trends Report launch, agent demographics + the mortgage lock - in effect by geography
In addition to the articles, here are a few items we are reading from across the internet.
Keller Williams Realty changed the details of its profit-sharing program from providing 100% of profit share to former eligible agents working for a competitor to just 5%. The new policy will go into effect by July 1, 2024, and represents another sign of increased competition among firms.
As more people work from home, leaving commercial buildings emptier than they had been before the pandemic, has led to more empty storefronts in city downtowns. This makes it harder for these areas to recover as some businesses push for a return to office work. But workers and employers face a bereft downtown, making the investment in commercial rents and commutes less appealing.
At least five major property insurers in the U.S. have shared with regulators that they are restricting the coverage of homes in certain areas, explicitly excluding some covered events and raising premiums as a result of severe weather and climate events.
Water shortages, risks of wildfires, flooding and hurricanes and tornadoes, are impacting more homeowners and areas in the U.S. Insurance will play a huge role in future growth of these communities, beyond residents’ willingness to live in such areas.
A cyberattack suffered by MLS service provider Rapattoni caused dozens of MLSs to suffer stalled services to members. Brokers had to scramble to find workarounds while their MLSs were down. The outage reflects the vulnerability of key industry technology and the need for MLSs and their partners, in particular, to invest in more secure, updated technology.
After a high-profile New York Times investigation, NAR president Kenny Parcell has vacated his role after facing significant sexual harassment allegations. Parcell denied any wrongdoing, but the development spurred a deep self-investigation by NAR into improving a structure and culture that may have contributed to an environment that bred allegations like those against Pacell.
After initial concerns, a Massachusetts district judge has approved the $3 million settlement between MLS PIN and plaintiff homesellers in the Nosalek brokerage compensation class-action lawsuit. MLS PIN also agreed to amend its rules to eliminate mandatory offer of compensation from sellers to buyer brokers.
As with the settlement above, developments continue with regard to brokerage compensation structure.
Anywhere Real Estate has secured preliminary settlement agreements the Moehrl and Sitzer/Burnett class-action antitrust lawsuits related to the firm’s alleged role in the industry’s compensation structure focused on by the suits. The firm has a preliminary settlement of the $83.5 million in the Moehrl case (along with changing its practices related to buyer agent commissions) with the Sitzer/Burnett preliminary settlement details pending. The U.S. district courts overseeing each case must still approve the settlements before they become firm.
The ongoing legal and regulatory scrutiny of the industry’s predominant brokerage compensation structure continues to result in changes in industry practices. T3 Sixty anticipates settlements will continue, and changes to the industry compensation structure. The degrees of change remain an open question.
Enabling Intelligent Change.
