by Melanie Klein | Apr 29, 2025 | Industry, News Feed
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the power of the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
The world of permitting and pre-construction is notorious for being complex, oftentimes sluggish and fragmented. For many, navigating the bureaucracy of approvals, zoning and planning is an overwhelming burden. But in Santa Barbara, California, two inspiring young entrepreneurs in their early twenties, Corban Pampel and Tristan Cravens, are changing that narrative.
TAKE THE INMAN INTEL SURVEY FOR APRIL
Through their company, SB Permitting, they have taken an industry riddled with inefficiencies and built a streamlined, innovative and highly effective system that makes the permitting process as frictionless as possible. While their business has filled an industry gap, the larger story is one about innovation, conscious leadership and a prime example of collaborative partnership — cornerstones of their rapid success.
From opportunity to innovation
For Corban Pampel and Tristan Cravens, SB Permitting wasn’t born out of a long-term strategic vision. Instead, it was a response to an immediate and pressing need in their community.
“It was really just an opportunity that the two of us identified and capitalized on,” Pampel recalls. “At the time, we were both enrolled at Santa Barbara Community College. Tristan had his own business hosting events on and off while I was working for my parents’ design studio.
“My parents had a project that needed a permit in the historic district of Santa Barbara, so I went by the city to see exactly what the process looked like. Upon a brief examination, I came to the same conclusion many do — I didn’t want to touch it with a six-foot pole.”
Faced with a convoluted process and no clear solutions, Pampel approached Cravens with an idea. Together, they realized they had discovered a niche market that was completely unserved. Their initial concept was simple: Provide consultation services to individuals and businesses trying to navigate the permitting process.
“Starting Santa Barbara Permitting was really just acting on a problem we saw,” Cravens explains. “There was no grand vision, no five-page business plan, no ‘marketing analysis.’ The only thing there was were people who said they needed help, and so we did something about it.”
Expanding the vision
What started as a small consulting endeavor quickly grew into something far more ambitious. Pampel and Cravens’ perspective shifted dramatically after a business competition at their community college.
“One of the judges told us that he thought there was so much potential that we were leaving off the table,” Pampel says. “That really changed our perspective because we started wondering just what we could accomplish. The outcome of this was we shifted our question from what we tell people to do, to what we ourselves can do to get a client from ‘I want to do ____’ to a builder breaking ground.”
This mindset shift led to a complete transformation of SB Permitting’s offerings. Instead of just providing advice, they built a full-service operation that managed every aspect of the permitting process. They would not only consult but also manage plans, oversee permits, coordinate with regulatory agencies and ensure a seamless pre-construction process.
“We would no longer be a company you asked how to pull a permit,” Pampel explains. “We would become a company where you could say, ‘I want a house,’ and you wouldn’t have to lift a finger to make it happen. We would manage the plans. We would manage the permit. We would manage the auxiliary bodies such as Edison and Environmental Health and Safety.”
The secret to exponential growth
The rapid expansion of SB Permitting has been nothing short of extraordinary. In a notoriously slow-moving industry, the company has grown at an exponential rate, securing over 50 clients in just 18 months. But what’s at the heart of their success?
“I think the heart of our exponential growth is a desire to innovate and have an impact on the communities we are a part of,” Pampel says. “A big part of what defines us is a client base that feels like they are out of options and out of luck when it comes to creating their dream space.”
For Cravens, the key to their success lies in their deep understanding of what the client truly needs.
“We’re exponential because we have such a thorough understanding of what the client needs,” he explains. “We know where we’re most helpful, and we fill in the gaps. We spot what needs to be done and we do it. We encounter a new problem, and we come up with a unique way to deal with it.”
A leadership style that sets them apart
Both Pampel and Cravens embody leadership styles that complement each other and drive SB Permitting forward. Pampel emphasizes adaptability and flexibility.
“I’d say one of the first words that comes to mind when I think about my leadership style is that I’m flexible,” he says. “I’ve always believed that it’s impossible to account for everything in any given environment or situation, but as long as you are capable of pivoting quickly, you can accomplish anything.”
Cravens, on the other hand, focuses on being a visionary and keeping both their team and clients aligned with a compelling future.
“I would describe myself as someone who really understands the value of being a good visionary,” he says. “It’s important that not only our team members but our clients remember why they’re doing what they’re doing.”
Collaboration with Realtors and industry professionals
SB Permitting plays a crucial role in the real estate industry by bridging the gap between property transactions and the reality of construction and permitting.
“For most of the Realtors we work with, we are that next step in the process for their clients,” Pampel explains. “We can generate plans for a general contractor to bid on, give insight into local regulations, and establish project feasibility and timelines before a client has even closed on a home.”
Cravens adds, “Realtors aren’t really supposed to know a lot about permitting and the details of design and construction — they aren’t walking ‘code books.’ So, we go onsite with Realtors to help provide that certainty and knowledge around home improvements, additions, ADUs and whatever else homebuyers envision.”
An inspiring partnership
Beyond their individual strengths, Pampel and Cravens’ partnership is a key factor in their company’s success.
“We’re very young people,” Cravens acknowledges, “and going into business together allowed us to build up each other’s strengths and shun each other’s bad habits, and really that’s the most valuable part of it. It’s made us not just better leaders but better people.”
For Pampel, their impact on Santa Barbara is deeply fulfilling.
“Santa Barbara is known to be one of the hardest places in the nation to get a building permit,” he says. “For us to be able to make it look easy at times is something that really validates the work and the care we have put into what we have done here.”
A call to action for industry professionals
For real estate agents, developers and professionals in the construction space, the question is simple: How can we rethink how we approach these processes to create a better experience for our clients? The answer may just lie in the kind of forward-thinking, problem-solving mindset that has propelled SB Permitting to the forefront of their industry.
As SB Permitting grows and redefines industry standards, Pampel and Cravens offer a compelling vision of what’s possible when innovation meets action. Their story serves as a reminder that opportunities for transformation exist in even the most bureaucratic and cumbersome industries.
Melanie C. Klein, M.A., is an empowerment and mindset coach.
This post was originally published on this site
by Melanie Klein | Apr 17, 2025 | Industry, News Feed
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the power of the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
In today’s world, real estate offers women a unique path to financial independence, long-term wealth-building and the freedom to shape their own careers. Julie Han, a Compass agent in San Diego, California, has a unique journey, spanning multiple states and industries.
Her experience is a testament to how real estate can not only provide opportunities for personal growth but also pave the way for generational wealth.
A family story of hard work and ambition
Han’s path into real estate wasn’t a straight line but rather a series of calculated risks and opportunities. Born into a family that valued hard work and education, Han’s parents emigrated to the U.S. with little more than determination and ambition.
Her father, a professor at Iowa State University, and her mother, who arrived through a scholarship to an all-girls Catholic college, instilled in her a deep respect for education. Han herself graduated from Johns Hopkins University with a degree in Natural Sciences before moving on to a Master’s degree in Finance and Management from the Johns Hopkins School of Public Health.
Her parents worked tirelessly, eventually investing in real estate and growing a portfolio. This experience laid the foundation for Han’s own journey, showing her the power of investing in property and the potential it offered for building long-term wealth.
The power of real estate for immigrants
For many immigrant families, real estate offers a powerful tool to build generational wealth. In fact, studies show that immigrants are more likely to invest in real estate compared to native-born citizens.
According to the National Association of Realtors (NAR), 61 percent of international buyers who purchased real estate in the U.S. in 2020 resided in the U.S. as immigrants or visa holders, with many of them seeing real estate as a secure way to build wealth for future generations.
Homeownership is particularly significant for immigrant families, as it not only provides stability but also serves as a foundation for future opportunities. A 2023 study from Harvard’s Joint Center for Housing Studies found that homeownership allows families to accumulate wealth, and for many immigrant families, owning property is a key part of securing a better future for their children.
As immigrants work hard to establish themselves in a new country, they often use real estate as a means of financial security, which in turn provides opportunities for their children to pursue better education and career opportunities.
For Han’s family, this meant a steady accumulation of wealth through smart real estate investments, which provided the foundation to a legacy of opportunity for future generations.
From healthcare to real estate: A pivot toward entrepreneurship
While in college, Han’s first career path was as a pre-med student. However, she soon realized that her true passion lay in the business side of healthcare, not the clinical side. After completing her Master’s degree, she worked in various healthcare roles, including research and administration, until an eye-opening experience in the corporate world pushed her toward a significant career pivot.
Han was disillusioned with the healthcare industry, especially after seeing how profit-driven motives often compromised patient care. A chance opportunity working for a building contractor led Han to obtain her real estate license, marking the beginning of a new chapter in her professional life.
Overcoming challenges in a male-dominated industry
Like many women in real estate, Han faced her fair share of challenges. Starting from scratch in three different states — New York, Colorado and California — she had to adapt to unique regulations, forms and MLS systems. But perhaps one of the biggest hurdles was breaking into commercial real estate, a field traditionally dominated by men.
Han’s perseverance paid off, and she successfully transitioned into residential real estate, where she would go on to become one of the most respected names in luxury real estate in San Diego. Her reputation as a skilled negotiator and detail-oriented professional allows her to navigate the high-end markets of Del Mar, La Jolla and Rancho Santa Fe and put her clients first.
Building wealth, 1 property at a time
Real estate ownership and career success have been transformative for Han, both financially and personally. She earns significantly more than the average female in the U.S. and has a comprehensive financial plan, supported by a wealth advisor, to guide her toward long-term goals. Real estate has allowed her to take control of her financial future, and this sense of security has expanded her life goals in ways she never anticipated.
For women, especially young and single women, real estate offers a pathway to financial freedom that might not otherwise be accessible. Han’s advice to women considering real estate as a career path is simple but powerful:
- Take calculated risks and follow your passion.
- Don’t be afraid to fail: Each failure brings you closer to a win.
- Find a great mentor or team to help you develop your career.
- Put your head down and do the work: Don’t complain; stay persistent.
- Be patient: Success doesn’t happen overnight, especially when starting in a new area.
The power of real estate for women
Han believes that real estate is one of the most empowering professions for women. The industry operates on commission, which means that women have the same earning potential as men, without the traditional ceilings that exist in many other fields. Real estate, with its flexibility and potential for high earnings, provides a unique opportunity for women to build their own businesses and achieve financial independence.
However, Han also recognizes the need for greater financial literacy, especially for women of color, who face additional barriers in the industry. More education on how to save, invest and become financially independent could be transformative for many women, helping them take full advantage of the opportunities that real estate offers.
Looking to the future
As the industry continues to evolve, Han envisions a future where more women, particularly women of color, are equipped with the tools and knowledge to succeed in real estate. With more financial literacy and mentorship, Han believes that the path to wealth-building through real estate will be more accessible to women everywhere.
Han’s journey is proof that real estate is more than just a career; it’s a powerful tool for empowerment, offering women the opportunity to take control of their financial future and build a legacy of wealth. As Han herself puts it, “If we were all perfect, we wouldn’t be human. Go out there and don’t be afraid to fail forward. Every failure gets you closer to a win.”
In a time when women’s financial independence is more important than ever, real estate offers an exciting, dynamic pathway to success. For women like Julie Han, it has been nothing short of life-changing.
Melanie C. Klein, M.A., is an empowerment and mindset coach.
This post was originally published on this site
by Melanie Klein | Apr 17, 2025 | Industry, News Feed
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the power of the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
In today’s world, real estate offers women a unique path to financial independence, long-term wealth-building and the freedom to shape their own careers. Julie Han, a Compass agent in San Diego, California, has a unique journey, spanning multiple states and industries.
Her experience is a testament to how real estate can not only provide opportunities for personal growth but also pave the way for generational wealth.
A family story of hard work and ambition
Han’s path into real estate wasn’t a straight line but rather a series of calculated risks and opportunities. Born into a family that valued hard work and education, Han’s parents emigrated to the U.S. with little more than determination and ambition.
Her father, a professor at Iowa State University, and her mother, who arrived through a scholarship to an all-girls Catholic college, instilled in her a deep respect for education. Han herself graduated from Johns Hopkins University with a degree in Natural Sciences before moving on to a Master’s degree in Finance and Management from the Johns Hopkins School of Public Health.
Her parents worked tirelessly, eventually investing in real estate and growing a portfolio. This experience laid the foundation for Han’s own journey, showing her the power of investing in property and the potential it offered for building long-term wealth.
The power of real estate for immigrants
For many immigrant families, real estate offers a powerful tool to build generational wealth. In fact, studies show that immigrants are more likely to invest in real estate compared to native-born citizens.
According to the National Association of Realtors (NAR), 61 percent of international buyers who purchased real estate in the U.S. in 2020 resided in the U.S. as immigrants or visa holders, with many of them seeing real estate as a secure way to build wealth for future generations.
Homeownership is particularly significant for immigrant families, as it not only provides stability but also serves as a foundation for future opportunities. A 2023 study from Harvard’s Joint Center for Housing Studies found that homeownership allows families to accumulate wealth, and for many immigrant families, owning property is a key part of securing a better future for their children.
As immigrants work hard to establish themselves in a new country, they often use real estate as a means of financial security, which in turn provides opportunities for their children to pursue better education and career opportunities.
For Han’s family, this meant a steady accumulation of wealth through smart real estate investments, which provided the foundation to a legacy of opportunity for future generations.
From healthcare to real estate: A pivot toward entrepreneurship
While in college, Han’s first career path was as a pre-med student. However, she soon realized that her true passion lay in the business side of healthcare, not the clinical side. After completing her Master’s degree, she worked in various healthcare roles, including research and administration, until an eye-opening experience in the corporate world pushed her toward a significant career pivot.
Han was disillusioned with the healthcare industry, especially after seeing how profit-driven motives often compromised patient care. A chance opportunity working for a building contractor led Han to obtain her real estate license, marking the beginning of a new chapter in her professional life.
Overcoming challenges in a male-dominated industry
Like many women in real estate, Han faced her fair share of challenges. Starting from scratch in three different states — New York, Colorado and California — she had to adapt to unique regulations, forms and MLS systems. But perhaps one of the biggest hurdles was breaking into commercial real estate, a field traditionally dominated by men.
Han’s perseverance paid off, and she successfully transitioned into residential real estate, where she would go on to become one of the most respected names in luxury real estate in San Diego. Her reputation as a skilled negotiator and detail-oriented professional allows her to navigate the high-end markets of Del Mar, La Jolla and Rancho Santa Fe and put her clients first.
Building wealth, 1 property at a time
Real estate ownership and career success have been transformative for Han, both financially and personally. She earns significantly more than the average female in the U.S. and has a comprehensive financial plan, supported by a wealth advisor, to guide her toward long-term goals. Real estate has allowed her to take control of her financial future, and this sense of security has expanded her life goals in ways she never anticipated.
For women, especially young and single women, real estate offers a pathway to financial freedom that might not otherwise be accessible. Han’s advice to women considering real estate as a career path is simple but powerful:
- Take calculated risks and follow your passion.
- Don’t be afraid to fail: Each failure brings you closer to a win.
- Find a great mentor or team to help you develop your career.
- Put your head down and do the work: Don’t complain; stay persistent.
- Be patient: Success doesn’t happen overnight, especially when starting in a new area.
The power of real estate for women
Han believes that real estate is one of the most empowering professions for women. The industry operates on commission, which means that women have the same earning potential as men, without the traditional ceilings that exist in many other fields. Real estate, with its flexibility and potential for high earnings, provides a unique opportunity for women to build their own businesses and achieve financial independence.
However, Han also recognizes the need for greater financial literacy, especially for women of color, who face additional barriers in the industry. More education on how to save, invest and become financially independent could be transformative for many women, helping them take full advantage of the opportunities that real estate offers.
Looking to the future
As the industry continues to evolve, Han envisions a future where more women, particularly women of color, are equipped with the tools and knowledge to succeed in real estate. With more financial literacy and mentorship, Han believes that the path to wealth-building through real estate will be more accessible to women everywhere.
Han’s journey is proof that real estate is more than just a career; it’s a powerful tool for empowerment, offering women the opportunity to take control of their financial future and build a legacy of wealth. As Han herself puts it, “If we were all perfect, we wouldn’t be human. Go out there and don’t be afraid to fail forward. Every failure gets you closer to a win.”
In a time when women’s financial independence is more important than ever, real estate offers an exciting, dynamic pathway to success. For women like Julie Han, it has been nothing short of life-changing.
Melanie C. Klein, M.A., is an empowerment and mindset coach.
This post was originally published on this site
by Melanie Klein | Aug 13, 2024 | Industry, News Feed
After unsuccessful negotiation attempts with Oren and Tal Alexander, Chief Growth Officer Nicole Oge, CEO Richard Jordan and President of New Development Andrew Wachtfogel are “forfeiting ownership” of the firm.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
After months of disruption at Side-backed firm Official in the wake of rape allegations levied against co-founders Oren and Tal Alexander, the firm’s other three co-founders have relinquished their ownership and are leaving the firm, Business Insider reported.
Chief Growth Officer Nicole Oge, CEO Richard Jordan and President of New Development Andrew Wachtfogel are “forfeiting ownership,” they told the news outlet, and effectively leaving operations of the two-year-old brokerage in the hands of the Alexander brothers.
Both Oren and Tal are now unlicensed in Florida and New York, their primary markets. They have denied the allegations against them, which have been detailed in multiple lawsuits launched by women who allege rape and sexual assault by the brothers dating back to at least 2010.
In a joint statement from Oge, Jordan and Wachtfogel that was emailed to Inman, the partners said the fallout from the rape allegations against Oren and Tal has seriously hindered the business.
“Since we first became aware of the accusations against Official’s other co-founders beginning in early June, we have worked to support our team and preserve the company on behalf of its employees, agents and clients,” the statement reads. “However, the impact of this news on our business has been severe. We work with the best people in the industry, but these events have significantly limited the ability of our agents and development teams to operate and transact with clients, and we anticipate future challenges that cannot be overcome.”
The trio’s departure will be effective on Aug. 15, 2024. The moves reportedly come on the heels of weeks of negotiations between the Alexander brothers and the other co-owners over ownership stakes in Official.
In a separate statement sent to Inman, Oge said she, Jordan and Wachtfogel had poured their “heart and soul” into the company, which had been moving on a successful path until the rape allegations against the brothers and their other brother, Alon Alexander, came to light.
“We made a huge impact in a short amount of time and are so proud of the work we did together,” Oge said. “We could not be more disappointed that we were not informed by Tal and Oren of these lawsuits and threats to our firm, and that our talented teams are now prevented from continuing Official on its path. These allegations are disturbing to us all, but importantly they are clearly opening up dialogue around the brokerage industry’s culture toward women at large.”
The news appeared to be in conflict with previous reports that suggested Oren and Tal were distancing themselves from Official after they had both publicly stated they would relinquish their roles as co-founders due to the lawsuits that had been launched against them.
However, their attorney, James Cinque, told Business Insider otherwise. He told the news outlet that the brothers “never said they were going to leave” and that “they want to continue with the business.”
“Official is concluding ownership and management changes to ensure continued excellent service to its markets,” Cinque said in a statement. “Tal and Oren Alexander wish the three members who are departing to pursue new opportunities the best of luck and much success. The Alexander brothers are excited about their new lineup and will be announcing details very soon.”
A representative for Tal Alexander did not immediately respond to Inman’s request for comment.
A spokesperson for Side told Inman that Tal and Oren’s real estate licenses are “not active on the Side platform.” They added that the firm “would not have established a partnership with them had we known of these serious allegations.”
Within one week of lawsuits against Oren and his twin brother, Alon, coming to light in June, Oge had said in a statement that Oren was “immediately isolated from the business” and that “the process of removing him from ownership is well underway.”
After Tal had later been accused of rape through a lawsuit filed in June, he said he would “take a leave” from Official.
Last month, Official West Coast founding agent Tyrone McKillen departed the firm along with his eight-person team, Plus Real Estate.
Within the last week, at least five agents in New York and Florida have also left the firm.
Oren has now been named in four lawsuits against him alleging rape and sexual assault, while Tal has been accused of rape in one lawsuit. Before the brothers co-founded Official, they were agents at Douglas Elliman for about 10 years.
Get Inman’s Luxury Lens Newsletter delivered right to your inbox. A weekly deep dive into the biggest news in the world of high-end real estate delivered every Friday. Click here to subscribe.
Email Lillian Dickerson
by Melanie Klein | Aug 9, 2024 | Industry, News Feed
Consumer guides from the trade group offer a contrast to previous messaging but also continue to promote pre-emptive offers of compensation to buyer agents.
Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better, and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.
After the National Association of Realtors came to a proposed settlement of multiple antitrust commission lawsuits in March, NAR President Kevin Sears was blunt about the changes the deal required.
“Some of this stuff, it sucks,” Sears told a roomful of real estate brokers at NAR’s midyear conference in May. “I get it.”
He went on to say that he did not think it was a good idea to remove buyer broker compensation from multiple listing services, which is one of the settlement’s mandates. “It sucks that it has to change,” he said.
Now, as NAR’s Aug. 17 deadline for MLSs to implement the deal’s changes approaches, the 1.5 million-member trade group has released buyer and seller guides last week that tout the changes as a “benefit” to consumers.
“NAR’s recent settlement has led to several changes that benefit homebuyers, and we wanted to clearly lay them out for you,” NAR said in a guide titled, “Homebuyers: Here’s What the NAR Settlement Means for You.”
A guide titled “Home Sellers: Here’s What the NAR Settlement Means for You,” contains nearly identical wording: “NAR’s recent settlement has led to several changes related to broker commissions that benefit sellers, and we wanted to clearly lay them out for you.”
NAR released the guides the same day Sears appeared at Inman Connect Las Vegas and received a mixed reception from attendees, whose views differed on how beneficial NAR has been for its dues-paying members.
In the wake of a multibillion-dollar jury verdict against NAR and major real estate franchisors in October, the trade group has struggled with its messaging to consumers and its members and has repeatedly cast the media as a villain in its efforts to defend the practice of cooperative compensation.
None of NAR’s hostility toward the settlement changes comes across in its new buyer and seller guides. The buyer guide lists several items on what the deal means for homebuyers, including:
You will sign a written agreement with your agent before touring a home.
Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
The buyer agreement must include four components concerning compensation:
- A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
- Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
- A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
- A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
The guides do, however, make sure to let both buyers and sellers know that sellers may still offer to pay buyer agents.
“The seller may agree to offer compensation to your agent,” the buyer guide reads. “This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
“You can still accept concessions from the seller, such as offers to pay your closing costs.”
At Inman Connect last week, clashing interpretations of the NAR settlement changes were clear, particularly in regard to cooperative compensation, also known as commission-sharing. At NAR’s midyear conference, the trade group’s legal team promoted the practice, detailed ways that listing brokers could advertise offers of compensation to buyer brokers outside of the MLS, and encouraged buyer agents to contact listing agents prior to showing a property to inquire about offers of compensation.
But panelists at Inman Connect discouraged the practice, which would also seem to go against what the U.S. Department of Justice has indicated they want to see happen: no offers of compensation from listing brokers to buyer brokers made anywhere so that the seller and listing agent have no influence on the amount buyers pay their agents.
The panelists favored having listing agents concern themselves solely with their own fee, buyer agents negotiate their compensation with buyers before showings, and buyers asking, if needed, for their agent’s compensation in a purchase offer, which the DOJ has specifically said would be permissible. The California Association of Realtors recently released new transaction forms that no longer support broker-to-broker offers of compensation, following an inquiry from the DOJ.
In contrast, NAR’s seller guide doubles down on the practice of pre-emptive offers of compensation to buyer brokers, telling sellers it’s a way to market their home and make their listing more attractive to buyers.
The guide states:
- You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
- Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers.
- This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.
- If you choose to approve an offer of compensation, there are changes to how this can happen.
- You as the seller can still make an offer compensation, but your agent cannot include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- Your agent can advertise your listing via off-MLS platforms such as social media, flyers and websites.
- You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).
Neither guide named alternative ways that buyer agents could be paid, other than through offers made by the seller, or the possible implications of those alternative ways.
As the real estate industry goes through a major change after Aug. 17, it remains to be seen which rule interpretations and practices will prevail, whether they will pass muster for antitrust regulators such as the DOJ, and what consumers will make of the contrasting messages being lobbed at them.
NAR did not respond to multiple requests for comment for this story.
Email Andrea V. Brambila.
Like me on Facebook | Follow me on Twitter
