Unveiling the Future of Agent “Steering”: A Closer Look at the Evolution in Real Estate Trends

The landscape of real estate is changing rapidly, with new rules and regulations reshaping the industry. A recent survey conducted among agents reveals a shift in practices that may have a significant impact on how buyers are guided through the market. Let’s delve into the key findings and explore what the future may hold for buyers and agents alike.

1. Changing Tides in Steering Practices
   • Before the NAR settlement, agents rarely engaged in ‘steering’ practices based on commissions.
   • With the looming deadline, industry consensus suggests that steering may become more common, driven by buyers rather than agents.
2. Agents’ Perspectives on Commission Influence
   • Less than 13% of agents reported the MLS disclosure of a listing’s buyer-side compensation occasionally influenced their advice to clients.
   • Over half of this group simply shared the commission information with buyers and allowed them to make decisions.
   • Only 5% of agents admitted to engaging in activities resembling covert ‘steering.’
3. Agents’ Plans Amidst Regulatory Changes
   • As MLSs remove the compensation field from listings, agents are reevaluating their approach.
   • The majority of agents regularly checked the compensation field but rarely used it to steer clients unknowingly.
4. Agents’ Value from Compensation Field
   • The MLS compensation field helped agents streamline communication with listing agents, understand brokerage approaches to commissions, track market changes, and forecast revenue.
   • Agents who didn’t check the MLS cited reasons like irrelevance to client service or market standardization of commissions.
5. Anticipated Impact of Regulatory Changes
   • Agents foresee an increase in steering, with buyers leading the way.
   • Future strategies involve clearer communication with listing agents or exploring seller-concession fields for commission information.

The real estate landscape is evolving, and agents must adapt to navigate these changes effectively. By understanding the shifting dynamics of steering practices and embracing new strategies for transparency and communication, agents can continue to serve their clients ethically and effectively in this rapidly changing environment.