Robert Reffkin, CEO of Compass Inc. (NYSE: COMP), is predicting the recent settlement by the National Association of Realtors (NAR) will have a minimal impact on the real estate industry.
“I think the headlines have been much more dramatic than the details of the actual requirements,” said Reffkin in a weekend interview with Yahoo Finance, noting there were two significant changes that would impact how agents operate. “One is that the MLS website – just a website – will no longer be able to hold the commission that is paid to the buyer agent. And the second is that buyers will have to sign a buyer representation agreement with their buyer agent. I think it’s not as dramatic as the headlines have described. I don’t think things will change as much.”
Reffkin also predicted that some people considering real estate careers might consider other career options based on the recent news coverage of the settlements, but he believed real estate professionals who are the top of their game will not see a disruption.
“Commissions have always been negotiable, and so from that perspective they’ll be able to negotiate in the same way they have in the past,” he said, noting that “if you’re an agent and you think that your services are worth more than others, yeah, I think this gives you an opportunity to say, I think I’m worth more and my services costs three-plus percent. And I do see that in the market … you may see some truly great agents, just like truly great lawyers, truly great doctors, command a higher commission than others.”
