Adapting to Change: The State of Real Estate Agents in 2024 Amidst NAR Lawsuits and Persistent High Interest Rates
The real estate industry is going through a period of genuine transformation. We recently reported on the NAR settlement and its ramifications for real estate in general and PropTech in particular. But that’s not the only challenge for real estate professionals. Interest rates persist at high levels, impacting the demand for homes.
Let’s take a closer look at what’s happening, and how innovative real estate firms are pushing through.
NAR Lawsuits and Settlements
In November 2023, a federal jury unanimously decided that the National Association of Realtors and some brokers were liable for $1.78 billion in costs. The NAR and its associates were accused of artificially inflating commissions around home sales. In March 2024, the NAR settled to the tune of $418 million, rocking the real estate industry.
While the NAR says it has settled to reduce strain on its members, the impact of this decision is far-reaching. New rules mean that closing costs and commissions will, in some cases, drop dramatically. Some experts predict that realtors will simply quit the industry.
Persistent High Interest Rates
High interest rates also continue to impact the housing market. This March, home sales dropped another 4.3% from the previous month, while mortgage rates are currently above 7%. The market has fewer prospective buyers and is packed with hard-to-shift homes.
Some experts think that interest rates will drop later in 2024, however maybe not by much and not as soon as some real estate professionals hope.
How Real Estate Firms Can THRIVE Not Just Survive
Is it all doom and gloom? Of course not. In fact, the most successful firms will be the ones who see the opportunities in the challenges. Lower commissions and written contracts to determine those help reassure consumers and could rebuild the trust the industry has lost.
Make sure these strategies are on your agenda:
Get your CRM updated: Ensure you have as much client data as possible, with consent, of course. Use it to build better relationships.
Utilize PropTech: Services like Curbio make realtors’ lives simpler, getting homes ready for viewings without gouging the time of real estate pros. Investigate what other services can improve efficiency across your business.
Update your pitch: When you can offer additional services, make sure your clients know that. Pick out what makes you better than the rest and shout about it.
Make sure you market every success and continue using marketing experts to discover which channels your target audience is active on.
Final Word
Weathering any industry-related or economic storm requires one central hub: Marketing. Work with experts who can help you share every success and show how you’re rising to the challenges of a shifting industry. Importantly, find new ways to reconnect with clients and customers who may not even understand the details of the current industry challenges.
To find the right marketing support for your real estate or PropTech firm, book a free 15-minute discovery call with Arch Collective.
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