Table of Contents
- An Overview of the Settlement
- What Changes Will the NAR Settlement Bring?
- The NAR Settlement and Real Estate Photography
- Trust PhotoUp to See You Through Any Market Changes
The recent NAR (National Association of Realtors) legal settlement has shaken the foundations of the real estate industry and left many real estate professionals feeling uncertain.
While much industry news is focused on the potential negative fallout of the NAR settlement, the outlook isn’t necessarily bleak for everyone, and real estate photographers may benefit from the coming changes.
Therefore, this article will explore how the NAR settlement will affect the real estate photography market.
However, before jumping in, let’s get an overview of the NAR settlement and its lawsuit.
An Overview of the Settlement
NAR is the primary trade and professional association for the real estate industry. With over 1.5 million members, it promotes, regulates, and studies the real estate market nationwide.
An antitrust lawsuit (Burnett v. National Association of Realtors et al.) from fall 2023 involved how real estate brokerage commissions are negotiated and structured.
Last October, the jury sided with the plaintiffs, agreeing that NAR and several large brokerages engaged in price fixing and conspired to inflate seller commissions.
The lawsuits challenge NAR’s cooperative compensation rule, which encourages home sellers to make commission offers to buyers’ agents who help sell the house.
In other words, to entice buyers and their agents, sellers routinely offered to pay the buyer’s agent’s commissions as part of the overall sale.
These cooperative compensation terms were published on the MLS (Multiple Listing Service), a national network of regional databases that brokers and agents use to alert and talk to one another about sales.
On March 19, 2024, NAR announced a settlement that would end litigation of claims brought on behalf of home sellers related to broker commissions.
Under the settlement, NAR would pay $418 million over approximately four years and change how it structures and negotiates commissions.
With that overview, let’s look at what will change regarding how agents work with buyers. Understanding these changes will then help us understand how the NAR settlement might impact the real estate photography market.
What Changes Will the NAR Settlement Bring?
In practical terms, let’s summarize what the NAR settlement will mean for the real estate industry overall, in particular, how agents work with and are compensated by buyers.
1. Written Buyers Agency Agreements
Certain local real estate associations already have mandated the signing of exclusive representation agreements between buyers and agents. Following the NAR settlement, it appears that this agreement will be required universally and before any property showings.
Additionally, the agreement must transparently outline the compensation arrangement between the agent and buyer.
Your area might already enforce a Buyer Representation Agreement. For those without one, anticipate its introduction in the near future.
2. The NAR Settlement and Negotiating Buyer Agent Compensation
The possible adjustments will require real estate salespersons to discuss compensation and commissions with buyers, potentially leading to negotiation if not already established.
Many sales agents find this unfamiliar territory. Will current commission rates decrease as a result? Only time will reveal the answer.
Nevertheless, notwithstanding the NAR settlement, sellers can still offer to cover the buyer’s agent’s fees through alternative means or concessions.
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3. A More Competitive Real Estate Market for Sales Agents
While no one knows all the changes the NAR settlement will bring, many industry analysts believe the result will be a more competitive real estate market for sales agents.
Why might this be the case? Because the effects of the settlement will likely lead to the following outcomes:
- Buyers using the services of an agent less often
- A reduction in buyer agent commissions
- The possible end of buyers’ agency overall
As the real estate market adapts to the settlement terms, there may be a dip in buyer demand for agents. Such a change might happen due to the impression that buyers will now have to compensate their agents directly.
Now that we understand the changes the NAR settlement will bring for the industry and real estate agents let’s look at what these changes might mean for the real estate photography market.
The NAR Settlement & Real Estate Photography
The above changes caused by the NAR settlement will likely boost the need for real estate photography, as more forms of real estate digital marketing will likely be needed.
This will likely be the case because the market will likely become more competitive for agents overall, and most agents will try to work with sellers more often or even exclusively.
Additionally, given the possible changes in compensation, prospective buyers will likely turn to online media to refine their search before committing to physical site visits.
Therefore, agents will have to enhance their marketing strategies to attract not only buyers but also future sellers. One way will certainly be to increase their visual and online marketing efforts. Agents who have stronger online marketing skills and better digital marketing assets will stand out among the competition.
So, the industry is about to see a surge in digital marketing overall. Moreover, this is where real estate photographers can play a vital role.
Not only will quality professional real estate photography become even more important for sales, but agents are going to rely on their photographers to provide more in terms of digital marketing.
This means that real estate photographers who offer additional digital marketing services such as floor plans, virtual tours, and virtual staging will be in high demand.
By leveraging advanced marketing media tools, agents can provide their clients with a comprehensive digital marketing experience that speeds sales at higher prices despite the competition. Further, they’ll stand out as competent marketers compared to agents who don’t use such digital solutions.
For these reasons, the need for high-quality digital media to sell real estate listings will almost certainly increase. And sales agents will expect real estate photographers to help them create and use such digital marketing tools and aids.
Therefore, real estate photographers should take advantage of the changes that are coming now. And we can show you how.
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Trust PhotoUp to See You Through Any Market Changes
The NAR settlement will likely boost real estate photography and digital marketing services.
So, why not get ahead of the trend and be ready for the new market realities? Become a real estate photographer offering the latest and best digital marketing tools.
PhotoUp can help you. By partnering with PhotoUp, you’ll be able to quickly provide a full range of real estate marketing services to agents, including:
- Real estate photo editing
- Virtual staging
- Virtual tours
- Video editing
- Real estate photographer websites
- Single property websites
- Floor plans
- Property flyers
- House portraits
- Virtual Assistants
- And more.
Go ahead – get in front of the coming changes now!
Sign up for a free PhotoUp account today and learn how to offer your real estate agent clients more of what they need.
In today’s post, you learned how the NAR settlement will affect the real estate photography market. If you enjoyed reading this post, you may also want to check out the following resources:
- Boost Real Estate Photography Sales With These Additional Services
- Try Professional Real Estate Photo Editing (Get 10 Free Credits)
- 6 Benefits of Using a Dedicated Photo Editing Service
- How to Start a Real Estate Photography Business (in 2024)
- Quick & Affordable Real Estate Photo Editing (Top Service of 2024)
