1836 Property Management Comments on Changing Real Estate Landscape Following Commissions Lawsuit

The NAR's settlement could change real estate, causing uncertainty, while 1836 Property Management focuses on clients amid market changes.

AUSTIN, TEXAS, UNITED STATES, April 22, 2024 /EINPresswire.com/ -- The real estate landscape could change quite a lot in the near future after the National Association of Realtors settled a landmark lawsuit over commissions charged by brokers.

1836 Property Management, Austin's premier property management company, says a lot is still up in the air, with the $418 million settlement just agreed to in mid-March. At this point, it’s still uncertain exactly how it will affect buyers, sellers, leasing, companies, investors and the industry as a whole.

While many industry experts believe that selling a home will become less expensive, buyers could end up shouldering a heavier financial load in real estate transactions.

From a property management standpoint, 1836 Property Management said they will no longer be able to post commissions payable to the tenants’ agents on the MLS.

This begs the questions, where will this information be posted? Will it be for each unit?

Further, if listing companies don’t pay the tenant’s representative, who will? Will tenants have the money to pay for their own rep out of pocket? Or, will they opt to go directly to apartment companies or through posted signage?

“It’s a bit all up in the air at this point,” said Melanie Price, who serves as Manager of Property Management Operations for 1836 Property Management. “The biggest thing is the MLS is taking away the commission details and won’t allow agents to disclose them anywhere on the listing. It’s also requiring agents to get a buyer’s representation agreement and listing agreement signed.”

This was recommended and “assumed” in the past, Price said, but now it will be required. This will prompt real estate agents to discuss the details of their commission with clients before they officially represent them.

At a recent meeting of the National Association of Residential Property Managers, leaders discussed how they anticipate there being many conversations happening between agents and other agents, and between agents and their clients. Agents likely will start to lower their commission percentage as well, Price said, or turn to flat fees to remain competitive.

When a new agent recently joined 1836 Property Management, he said that real estate in London is entirely different than in the U.S. Across the pond, buyers and sellers generally represent themselves and use lawyers to draft contracts, without the aid of real estate agents at all.

Is that where the real estate landscape is going in the U.S.? It’s hard to imagine that the industry will change that dramatically, though it’s certainly possible to at least trend in that direction.

There are many questions that are still unanswered in the real estate industry, and that can make investors a little uneasy. That’s why 1836 Property Management has been keeping up-to-date with all the recent developments and communicating directly with NARPM so it can serve its client investors best.

1836 Property Management is a leader in the greater Austin, Texas real estate and property management industry. Its aim is to help clients reach their real estate investment goals and garner peace of mind through the process.

1836 Property Management uses the rich knowledge of the Austin real estate market to focus on human-to-human collaboration and investment performance so clients can locate properties that fit their investment goals, analyze returns and expenses, lease acquired properties, and maintain them under an all-in-one umbrella.

To learn more, please visit 1836PropertyManagement.com.

Kayla Gonzales
1836 Property Management
+1 512-994-4323
email us here
Visit us on social media:
Facebook
Instagram
YouTube
Other