A massive change occurred in most real estate markets across the nation on August 17th, 2024: The seller-pay model of residential real estate is in flux. Technically, nothing has changed in New York City, since the Real Estate Board of New York (REBNY) has not settled its lawsuit.

However, everything has changed already. It’s a New Housing Market. And I couldn’t be more excited. I’ll tell you the three reasons you should be, too:

Buyer Research & The Hard Conversation

The first reason I’m so excited? Buyers can no longer ignore some critical first steps in their process. Namely, doing research to find an agent they like and trust. As I’ve said before, 75% of buyers work with the first real estate agent they meet. Stop doing that, buyers!!!

Instead, since buyers are confronted with the possibilty that they will need to pay for the service of real estate professionals, they are more likely to speak to more of them. The result? They’ll choose a better-suited agent to work with, someone who understands their needs better. Someone with the necessary experience. Someone who cares about them and can get deals done. What can be bad about this?

Yes, this will require some difficult conversations around money. They might trigger you, or bring up your mistrust. That’s fine. I heard a saying not so long ago that’s appropriate. “The quality of your life can be measured by the amount of uncomfortable conversations you’re willing to have.” Getting some of the icky stuff out of the way at the beginning means that you can trust your agent more, and move onto the important stuff: finding a home you love.

The Value Proposition

As part of these difficult conversations, I am really excited for the opportunity to share what I feel is a strong value proposition for working with me and my team. Any great agent will be well-positioned for success in this environment, because they, too, can articulate how they can better help you.

Buyers—you should be as excited as I am. You get to learn more about the process, and get to hear the stories of how your agent will navigate your market with you. So ask the tough questions. Understand how your agent works. See if you feel good around them, and if you feel they have your interests at heart. Get references. Do the work now.

Weeding Out The Mess in the Current System

Lastly, I’m thrilled about the big change in the market because it will weed out agents, and rent-seekers who make the procession transactional. What do I mean? Gone will be many agents who have no idea what they’re doing. Gone will be much of the confusing advertising of buyer agents who don’t actually represent properties, because they need to have you sign paperwork representing you, or they can’t show you properties. By definition, you’ll have to have transparent conversations with them. Perhaps you’ll like them, and that’s great. But I suspect that you’ll also decide that you might want to do a bit more research before you hire your own representation.

All In All

This is a moment where the cream will rise to the top. It’s a chance for agents to prove their value. It’s a opportunity for buyers to do a gut check and to get more educated. All of this is not just good for the market. It’s incredible.

I can’t wait to see how it plays out.