Written by James Wang – CEO, REAI, Inc.
As we all know, the August 17th rules stemming from the National Association of Realtors (NAR) settlement, created a seismic shift in the real estate industry. Prior to August 17, 2024, the buyer agent received their commission by default. As a result of the settlement, the buyer agent is now required to ask the buyer client to sign a formal buyer representation agreement with commission clearly defined before the engagement process begins. This ensures transparency pertaining to the buyer-agent compensation, which was previously paid by the seller through MLS agreements. Now, when a new property listing is created in the MLS, it will no longer display buyer-agent compensation information, shifting the burden to the buyer agent in most cases, to negotiate with buyer clients to get paid.
In some cases, buyer agents must adapt to compensation reductions, as buyers not clearly seeing agent value might negotiate much lower fees. Furthermore, brokers can no longer discuss “typical” market commission rates, which limits pricing transparency across the board. Agents must also be careful not to accept more compensation than outlined in their agreement.
In a nutshell, these changes are intended to provide more flexibility and fairness to consumers when it comes to agent commissions throughout the real estate transaction. In the new post-settlement era, buyer agents are required to be more proactive in their communications and negotiations with clients by clearly demonstrating their value in the home buying process.
Yet, a recent survey conducted by NAR in May 2024, revealed that 82% of consumers experience buyer’s remorse afterward, often due to agents not finding the right property for the buyer. That staggering statistic, combined with convincing the buyer to continuously pay 3% commission to the buyer agent and sign an agreement before the engagement begins, could become an uphill battle. After all, purchasing a home is likely the largest financial decision consumers make in their lifetime.
Improving buyer satisfaction with smart matching technology
Agents need to make sure their buyer clients are happy with their purchase. The manual process of searching for properties for clients is clearly not efficient in the post-settlement era. In an effort to address these inefficiencies, many agents are turning to AI solutions.
One such solution, AiMatch®, was created for buyer agents and buyers to overcome search inefficiencies by providing users with best-matching technology, while leading buyers to their dream homes, at their fingertips. AiMatch®, developed by REAI (reai.co) is based on its proprietary AI patent. Instead of agents spending hours of time daily searching on MLS sites that often do not meet the criteria for their buyer clients, AiMatch® utilizes REAi’s patented AI technology for real estate smart matching to present the best matching properties instantly, based on their individual buyer client’s current and projected needs. AiMatch® runs advanced algorithms and calculations to project the best scenarios and smart matches for individual buyers. REAI’s unique technology behind AiMatch® will also enable a listing agent to support their seller client in the future, based on their matches to get sale done. Better still, AiMatch® enables agents to provide their clients with the best matches instantly and automatically. This technology will also be available for mortgage providers, insurance providers, and more. AiMatch® can also guide agents to support their clients with producing the most beneficial terms, processing documents, and even running the transaction process through REAi’s proprietary AI technologiy system.
Delivering other value-added advantages for agent clients with AI
REAi also provides other proprietary AI solutions to agents and their clients, including automating the property staging process through REimagine™, auto generating new property listings with captivating descriptions and fully compliant property fields/features through AiListing™, to support the sales and transaction process. These tools enable the agent to provide a smooth sales process. The REAi system use its unique AI guide the listing agent throughout the journey generating virtual property staging, new listings, processing offers and negotiation, generating contract and closing documents, running other transaction steps, tasks, and more – delivering added value to their clients.
The REAi team, comprised of top-notch machine learning PhDs, veteran industry executives and brokers, continues to build upon its proprietary AI solutions with advanced features and systems to further support both the buyer and seller/listing agents in delivering added value to their clients.
