A longstanding practice, the very concept of buyer agency—and the value buyer’s agents bring to the home-buying journey—is being challenged within the industry today. As practice changes required under the National Association of REALTORS®’ (NAR) Settlement Agreement go into effect this month (as of press time), Realtor.com is doubling down on its commitment to not only educate buyers about the importance of buyer representation—specifically among underserved and underrepresented buyers—but also to help agents communicate their value to potential clients.
“Real estate professionals are being challenged when it comes to how to communicate their value,” explains Realtor.com® Chief Marketing Officer Mickey Neuberger, as the importance of value proposition has taken on a whole new meaning in today’s changing landscape.
In fact, in today’s commission-lawsuit climate, effectively communicating your value proposition will have a direct impact on your earnings.
Rising above the noise: the genesis behind the movement
Standing up for buyer’s agents, this past April, Realtor.com launched a consumer- and industry-facing buyer representation campaign complete with a buyer agent toolkit featuring downloadable assets that can be customized and shared with one’s network to highlight everything agents do for consumers before, during and after the home-buying process.
At the heart of the campaign is a checklist featuring 111 things that must be done when a prospective buyer is ready to purchase a home—ranging in scope from researching the real estate industry and legal services to understand what’s available, including the entire process and necessity for legal representation, all the way down to arranging for move-in day by contacting movers…and everything in between.
Updated versions of the list are now available with custom messages for specific groups as Realtor.com zeroes in on empowering underserved and underrepresented buyers.
“It’s overwhelming,” says Neuberger. “That’s the point.”
But consumers want and need their own representation during the home-purchase process, which is often costly and complicated.
“To undertake the biggest financial transaction of your life by yourself, or with the seller’s agent who doesn’t have your interests in mind, would be very risky,” adds Neuberger.
Therefore, it’s no surprise that nine out of 10 homebuyers in a proprietary 2023 Realtor.com survey say that they’d use a buyer’s agent when purchasing a home again. Drilling down further, an overwhelming majority say that buyer’s agents are paid appropriately.
“In light of the NAR settlement, conversations taking place at the Department of Justice and articles being written by mainstream media, now’s the time to say what we stand for—and that’s independent buyer representation,” says Neuberger. “Because of the noise in the industry, now’s the time to double down and help educate prospective homebuyers while helping agents demonstrate their value to potential clients at the same time.”
Empowering underserved and underrepresented groups
Capitalizing on the success of its buyer representation campaign, Realtor.com is setting its sights even higher with a new initiative promoting the benefits of buyer’s agents for individuals in historically underserved and underrepresented communities.
This includes Black and Indigenous people (BIPOC); Asian American, Native Hawaiian and Pacific Islander (AANHPI); Hispanic; LGBTQ+ people; first-time; Veteran and lower-income buyers—all of whom are at further risk of distancing themselves from the American Dream of homeownership without the support and guidance of a buyer’s agent.
And while the process of purchasing a home is complex for buyers across the board, for individuals in underrepresented communities, the hurdles can be even more challenging.
“One thing that isn’t being talked about enough is the fact that the people who stand to be impacted the most by any potential changes stemming from the NAR settlement are the underserved and underrepresented buyers. Typically, first-time buyers are the ones that need the most help and someone to advocate for them. But if they have to go it alone—or directly with the seller’s agent—they’re the ones that stand to lose the most,” says Neuberger.
“The whole reason changes are being discussed is to bring housing costs down to allow more people to enter the housing market, but the opposite might occur,” he adds.
Advocating for fair housing for all buyers, regardless of their background or financial status, Neuberger notes that the company’s decision to extend the reach of its buyer representation campaign boils down to the notion that everyone deserves an equal shot at achieving homeownership.
“With the changes taking place within the industry, there’s a risk that vulnerable individuals—particularly those with limited experience or means—could struggle to access or pay buyer’s agents during the home-buying process,” says Neuberger. “That could close the door to generational wealth for BIPOC, AANHPI, Hispanic, LGBTQ+ people, first-time, Veteran and lower-income buyers.”
Looking at the stats, it’s clear to see that historically underserved and underrepresented communities need the same support and protection to successfully overcome specific challenges found during the home-buying process.
According to industry studies/reports Realtor.com referenced in creating the campaign, these are the most common challenges: Low-income families are 22% more likely to be denied a loan1; LGBTQ+ people are 25% less likely to own a home compared to all Americans2; one in four Hispanic individuals completes the home-buying process entirely in Spanish3; seven in 10 Veterans are unaware that they can qualify for a zero-down home loan4; the homeownership rate of Asian American and Pacific Islanders is 16% lower than White Americans in the same low- to moderate-income brackets5; and the gap between Black and White homeownership is worse today than it was in 1968 when the Fair Housing Act was passed6.
As if that weren’t enough, if commission settlements lead to increased transaction costs or reduced access to buyer representation, it could further limit the ability of these groups to purchase homes, while at the same time, exacerbate existing inequities in homeownership.
“Fair housing has been part of Realtor.com’s DNA for as long as the company has been around, and this was a message we didn’t feel was being discussed enough. And we know this is something our customers care about,” says Neuberger. “We’ve done a lot of work with fair housing agencies, the National Association of Hispanic Real Estate Professionals and the LGBTQ+ Real Estate Alliance to name a few, and we wanted to give them a voice while shining a light on this important issue.”
Agent and industry partnerships play a key role in the campaign, joining forces to have a more meaningful impact as the movement continues to gain ground and spread the message in support of buyer agency further and wider.
As part of the campaign, prominent real estate organizations such as the Asian Real Estate Association of America, the Homeownership Council of America, the LGBTQ+ Real Estate Alliance, the National Association of Hispanic Real Estate Professionals, the National Association of Real Estate Brokers, the National Homeownership Conference and Veterans United Home Loans signed onto a joint letter in support of buyer agency that was published in the Wall Street Journal, the New York Post and the Washington Post.
“This isn’t a Realtor.com advertisement. It’s really a PSA. It’s educational,” explains Neuberger, who welcomes industry partners to join them in the fight.
“We want to help the whole industry, and we’re happy to be the spark plug to do it.”
Leading the charge into the future
While there’s no telling how things will shake out as the future unfolds, and how commission lawsuits will impact the real estate industry of tomorrow, one thing that will never change is Realtor.com’s unwavering commitment to speak up for everyone in the industry and be a leader in the buyer agency space.
“We’ve been fighting for buyer agency and fair housing (two separate entities that go hand in hand) long before these two campaigns, and we’ll continue to lean into this long after. It’s who we are,” says Neuberger, speaking with the utmost pride at the way in which the company is leading the charge to change the narrative surrounding buyer agency and its importance in ensuring everyone is given the chance to create generational wealth through homeownership.
“I’m so proud of this campaign, which has been so well received,” he adds, noting that it’s the most successful campaign he’s worked on during his four years at Realtor.com.
“The industry was thirsty for this, for someone to speak up,” he says. “When you look at the amount of advertising we did compared to the way in which the industry took the assets and amplified them…we’ve never had that kind of success.”
But their work isn’t done. And with Neuberger at the helm, there’s plenty more to accomplish.
Looking ahead, according to Neuberger, there are already plans in place for ongoing buyer agency campaigns centered around testimonial-like stories from agents related to how they’ve helped consumers through the home-buying process.
“We’ll continue to write op-eds and print PSAs to support both fair housing and buyer agency,” says Neuberger. “And we’ll continue to work with our partners in the industry while promoting things like down payment assistance programs in conjunction with home listings on our site.”
Last but not least, guides tailored to different buyer segments will be a key piece of the puzzle. This is paramount as the number of Hispanic households is set to skyrocket in the near future—ushering in a whole new wave of first-time buyers.
“There will absolutely be a phase 3 and a phase 4,” concludes Neuberger. “Our role in the industry comes with a great level of responsibility. So many homebuyers come to us to find their home and seek advice, and now they’re curious about what’s happening in the industry. It’s our responsibility to help our customers by clearing up any confusion while helping industry practitioners communicate their value.”
For more information, please visit www.realtor.com/buyeragenttoolkit.
1Source: Urban Institute 2023 Rising Interest Rates Put the Brakes on the Mortgage Market for Borrowers with Low Incomes, 2019–22 Home Mortgage Disclosure Act data
2Source: LGBTQ+ Real Estate Alliance, May 2023 3rd Annual LGBTQ+ Real Estate Alliance Report
3Source: NAHREP 2022 Glossary of Real Estate Industry Terms
4Source: Based on a national survey of 300 respondents, split evenly between active duty service members and Veterans, conducted in October 2023 by data and analytics firm Sparketing on behalf of Mortgage Research Center, LLC. VeteransUnited.com |1-800-884-5560 | 550 Veterans Dr, Columbia, MO 65201 NMLS #1907 | Not a Govt. Agency | Equal Housing Opportunity. Licensed in all 50 states. Licensed Mortgage Banker – NYS Department of Financial Services.
5Source: AREAA, 2024-25 State of Asia America Report
6Source: Urban Institute 2024 Wealth Inequality in America as calculated from Decennial Census and the American Community Survey.
