David Cross, Pasadena Now’s Real Estate Section Editor, interviewed Tim Durkovic, a seasoned broker associate at Douglas Elliman Real Estate.
In the months following the National Association of Realtors (NAR) lawsuit settlement, the real estate industry has been abuzz with speculation about impending changes and their implications. However, according to industry insiders, the impact on day-to-day operations and commission structures may be less dramatic than initially feared.
To shed light on these developments, David Cross, Pasadena Now’s Real Estate Section Editor, sat down with Tim Durkovic, a seasoned broker associate at Douglas Elliman Real Estate, to discuss how the settlement has affected realtors, their relationships with clients, and the overall dynamics between home buyers and sellers.
Durkovic reports that the fundamental commission structure remains largely intact.
“The net result of how things have shaken down is not much has really changed in reality at the end of the day,” he states. While there have been adjustments, particularly in how commissions are discussed and negotiated, the overall financial landscape for both agents and clients appears stable.
The settlement has prompted more upfront discussions about compensation. Sellers now have the option to offer varying levels of commission to buyers’ agents, or none at all. However, Durkovic notes that in practice, most sellers continue to offer the standard commission to attract qualified buyers with proper representation.
One notable change is the implementation of more rigorous buyer consultation and vetting procedures.
“We are deepening up our buyer consultation and vetting process,” Durkovic explains. This includes financial qualification and signed compensation agreements before property showings, which he views as a positive development that ensures more serious and committed buyers.
Contrary to concerns about strained relationships, Durkovic reports that his interactions with clients remain strong.
“My clients become like my family,” he says, indicating that most understand and appreciate the value brokers bring to transactions. The settlement has necessitated more educational conversations about new procedures but hasn’t fundamentally altered the trust between agents and clients.
Interestingly, the settlement hasn’t significantly impacted collaboration between realtors. The main change lies in the necessity for upfront discussions about compensation structures before showing properties.
One area of ongoing uncertainty is the ability to incorporate buyer representation fees into mortgage loans. Currently, this is not possible, potentially creating challenges for buyers who lack the cash to compensate their brokers directly.
As the industry continues to adapt, some realtors are considering new strategies, such as educational initiatives for buyers. However, the core services and value proposition of real estate professionals appear to remain intact.
While the NAR settlement has undoubtedly brought changes to the real estate landscape, the industry’s resilience and adaptability are evident. As Durkovic’s insights suggest, the focus remains on providing value to clients and facilitating smooth transactions in this new era of increased transparency and negotiation. The long-term effects of these changes on home buyers and sellers remain to be seen, but for now, the real estate market appears to continue to function with only minor adjustments to its established practices.
