The maelstrom of change and upheaval sparked by a commission-lawsuit pile-on, subsequent practice changes to compensation structure and a media feeding frenzy may have shifted who real estate brokers trust—and who they are depending on to guide them through a still very uncertain time.
In RISMedia’s latest Broker Confidence Index (BCI) survey of the country’s leading real estate business owners, brokers appear to be relying heavily on in-house or third-party research and experts to provide them with answers and data, while their trust in institutions like the media and the National Association of REALTORS® (NAR) is flagging.
“I am afraid buyers and sellers have received bad advice about the recent changes,” wrote one broker, who requested to remain anonymous.
While the settlement might have shaken brokers’ trust in some institutions, the lack of major disruptions in these first few weeks might have helped boost their confidence, as the overall BCI rose from 6.6 to 6.8 in August (the first increase from July to August since the survey’s inception).
After the changes to MLS policy and compensation structure were revealed back in March—with a relatively short timeline for implementation—many agents and brokers were desperate for guidance on how to interpret the new rules, as well as eager for news on the evolution of the settlement. Some were critical of NAR’s communication in the wake of the agreement, though more criticism originated from multiple scandals that have roiled the organization over the past year.
According to the survey, around half of brokers still rely on state associations, NAR and trade media to provide them with the information and guidance they use to run their business.
But almost all (over 90%) have also turned to third-party researchers or experts, and more than half (54%) also have an in-house person or team providing them with these kinds of insights.
While there is no pre-lawsuit data to compare this to, it would appear that brokers have also lost some amount of trust in REALTOR® groups to provide useful and reliable information. Brokers were highly split on the decision by NAR to settle, though for the most part, practice changes have (so far) not had a huge impact on real estate businesses.
Less than 1% of brokers rated NAR as “most trustworthy,” compared to 18% who ranked their state association at the highest level of trust, and 27% who said the same about their local association.
Brokers also have an extremely low level of trust in social media and national media, with a slightly higher level of trust in local media. Notably, mainstream newspapers and news channels made huge errors or printed misleading headlines regarding the NAR settlement back in the spring, with President Joe Biden echoing these misconceptions.
More than half (56%) of brokers gave the national media the lowest possible rating for trust, with local media only faring slightly better (45% ranking it at the bottom).
On the other hand, brokers said they trust trade media more than REALTOR® associations, including NAR. Unsurprisingly, brokers have the highest level of trust in the in-house experts they hire, and a very high level of trust in third-party experts.
A better year
While the long-term effect of losing trust in these institutions could be significant, in the short term, brokers are feeling much better about the real estate industry—something that is especially remarkable, since the survey was carried out only days after the settlement changes went into effect.
The result also reverses a longer-term trend, as the BCI has fallen from July to August every year since its inception, as seasonal slumps and mortgage rate increases have stymied the market. The fact that this trend reversed in 2024 despite a historic disruption that was long resisted by the industry is hard to see as anything other than a big short-term positive for real estate.
Some real estate business leaders even saw positive market developments in their region.
“As we engage consumers with the after-NAR-settlement, so far, the consumers remain in a ‘valuing-us’ relationship dynamic. This new industry dynamic was unknown, initially going well. Plus a healthy activity month in August, which provides some level of higher confidence,” said another broker who requested anonymity.
The fact that sales are down and mortgage rates are up suggests that a significant element in the confidence boost is the fact that many brokers were bracing for major issues around Aug. 17 (when the changes went into effect), and have so far been pleasantly surprised by the transition.
“The demand from buyers remains softer than we’d like to see—but we really haven’t seen any real problems associated with implementing the new protocols to comply with the NAR settlement,” said yet another broker who asked to be anonymous.
Not all brokers were as optimistic about the near future, with several saying they were worried about more uncertainty and upheaval caused by the Department of Justice’s involvement in real estate policy and an upcoming presidential election.
“Election and taxes and interest rates all scare buyers and sellers,” said Mike Didier, broker/owner of RE/MAX United in Wisconsin.
Both the election, which could offer very different housing outcomes depending on the winner, as well as the final court hearing to approve the NAR settlement will take place in November, roughly two months from now. The Federal Reserve is also widely expected to begin cutting interest rates this month, which also promises to have a major medium-term impact on the real estate industry.
