Maybe I am losing my mind….
I asked AI what the benefit of the new commission laws in Real Estate for 2024 would be for real estate salespeople. This is what I was told.
- Increased Market Activity
With the potential decrease in commission rates, more sellers may be inclined to list their properties, leading to an increase in market activity. Real estate agents could benefit from a busier market with more transactions taking place.
- Attracting More Sellers
Lower commission rates may make it more appealing for sellers to engage real estate agents for their services. Agents could attract more seller clients who are looking to save on listing and brokerage fees, thereby expanding their client base.
- Competitive Edge
Real estate agents who adapt quickly to the new market dynamics and offer competitive services tailored to clients' changing needs could gain a competitive edge. Agents who can showcase their value beyond commission rates may stand out in a market where rates are under pressure to decrease.
- Efficiency in Transactions
The revised rules aiming to reduce transaction fees could lead to smoother and more efficient transactions. Real estate agents could benefit from streamlined processes and potentially quicker sales, enhancing their overall efficiency and client satisfaction.
- Professional Credibility
By operating in a market that prioritizes transparency and fair pricing, real estate agents can enhance their professional credibility. Clients may view agents positively for adhering to the revised rules and offering transparent and competitive services.
Now here is what I think…
Real estate agents are going to be paid less to do more work. In five years, we will have half the agents working in America as we do now. Many agents will quickly adapt to the new rules, and some will find unplanned loopholes and make more money than previously thought possible. The actual best agents, who focus on honest work for their clients, will say 'screw it' and retire to an island somewhere.
This all happened before, in 2010, back when the laws were changed for appraisals. Dodd-Frank, I believe, lowered what appraisers made by about 40% and made their work harder. What happened was many of the best appraisers left the business, which is why we are seeing so many misappraisals now.
Despite the challenges ahead, with changes in regulations and shifts in the industry, there's always room for innovation and adaptation. Let's remain optimistic and proactive in navigating these changes together, ensuring that the real estate landscape continues to evolve while maintaining integrity and quality service for our clients.
But if you want to hear more about my opinion, come check me out at my next open house in the Metaverse, where I'm featuring a 2-gig ranch with views of the main server.
First, they came for the socialists, and I did not speak out—because I was not a socialist.
Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist.
Then they came for the Jews, and I did not speak out—because I was not a Jew.
Then they came for me—and there was no one left to speak for me.
—Martin Niemöller
