In the face of lawsuits from the consumers commission, real estate brokers are reviewing their business models and scrambling to adjust and refocus their strategies. As reported in the RealTrends Q4 2023 BrokerPulse survey, some of the preferred safety nets to protect their industry include:
• Adding Buyer Representation Agreements and Training (30%): Introducing more formal agreements and bolstering on-the-job training for agents to increase competency and protect themselves against consumer fraud claims.
• Cutting Costs (20%): Streamlining their operations and cutting costs to allow for more competitive pricing.
• Hone value propositions (17%): Designing unique selling points and expanding their local market presence to increase visibility and ensure that they remain a top debate when it comes to securing representation.
• Restructuring their compensation model (1%): Developing highly customized approaches to agent remuneration, with an emphasis on profitable business and a balanced approach between fixed and variable costs.
Real estate brokers are not taking the threat of law suits lying down and are instead taking action to ensure that their industry continues to produce competitive and trustworthy results for decades to come. Although comprehensive restructures of their compensation models remain rare, realtors are actively reviewing all elements of their value chain to increase consumer trust and defend themselves against potential consumer action.
You can read this full article at: https://www.housingwire.com/articles/q4-brokerpulse-commission-lawsuits-spur-proactive-changes-for-real-estate-brokers/(subscription required)
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