I don’t know if I should be afraid of the new changes or not. On one hand, the new NAR (National Association of Realtors) rules could be seen as a threat to the industry and the way we’ve been doing business for years. But on the other hand, they validate the very principles we've been advocating since I started in real estate back in 2005. More about what we are doing differently below.
Let me break it down for you. Big brokerages sold clients on the idea that the buyer agency was "free," with the seller covering the cost. This narrative kept buyers from negotiating, ultimately keeping commissions artificially high. What set us apart—and made us truly appealing, in addition to our ability to deliver results—was our commitment to lower commissions and offering rebates, a stark contrast to the rest of the industry.
So, what’s changing? The courts are making clear what we’ve been saying all along: Buyer Agency is not free! Commission savings through buyer rebates and lower fees are a legitimate way to lower the cost of purchasing a home. While big brokerages have often banned their agents from offering these rebates, confusing cost savings with discount services, we’ve always embraced them.
- Ban on misleading language: Agents can no longer use language that implies buyer agency is "free."
- Pre-agreed commission rates: Agents must settle on a commission rate in writing before any work begins, including showing homes. They cannot be paid anything above the agreed-upon rate.
- Mandatory disclosure: Agents are now required to disclose in writing that commissions are fully negotiable.
The new rules aim to prevent agents from steering buyers toward higher-commission homes, ensure buyers understand the real cost of representation, encourage open discussions about commissions, and address market inefficiencies to give buyers more options.
How Are Buyer Agents Getting Paid?
Sellers can still cover buyer agent commissions, but the process has changed. These commissions can no longer be advertised as a blanket offer in the MLS. Instead, compensation must be offered, advertised, and negotiated outside the MLS. If the seller agrees to pay the buyer agent's commission, it must be explicitly stated in the sales contract, and the amount is fully negotiable. If a seller declines, the buyer might be responsible for covering the agent's fee. The new contract language now includes:
“Seller Payment towards Buyer’s Brokerage Compensation: _ $ or _ %”
So, should I be afraid? Maybe a little, but not for the reasons you might think. For us, it’s mostly business as usual. We’ve always been upfront about our commissions, and now that everyone else has to do the same, we might not seem as different to new clients. But here’s the thing—80% of our business comes from referrals and repeat clients. We’ve built our reputation on hard work and delivering value, and we’re not about to stop now.
What You Need to Know About Working with Glass House Real Estate Under the New Rules
Upfront Agreements: Under the new rules, Realtors must have a buyer agency agreement in place before showing homes. However, we understand that committing upfront might not feel right before we’ve had a chance to see if we’re a good fit. That’s why we’re introducing a no-commitment, single or multi-day, no-fee touring agreement. This approach allows us to comply with the new NAR regulations while keeping the process risk-free for you. Once we’ve had a chance to work together, we can move forward with a formal buyer agency agreement.
Rebates Are Still a Thing: We’ve been offering buyer rebates for years, and they remain a fantastic way to save on your home purchase. While commissions can still be paid and offered by sellers and agents, they can no longer be advertised in the MLS. Any commissions or negotiated concessions that exceed our fee will go directly back to you.
This is a significant change in an evolving situation that will almost certainly shift over time. We’ll adapt as needed, stay flexible, and keep an open mind as we forge our own path—leading the way ahead of the industry.
We’ll keep you informed with updates as things progress. If you have any questions or want to know more about how these changes impact you, don’t hesitate to reach out. We’re here to help, as always.
