As we all know, it has been a transitional year for real estate. The strong seller’s market that kicked off the year is now a fond memory, with softening demand allowing the market to begin to normalize. Indeed, the impact of sharply higher mortgage rates, rising inflation, and ongoing shortage of listings for sale has been a steady decline in home and condo sales over the last several months, as well as much more moderate rates of annual price appreciation than we’ve seen since before the pandemic began. 

The days of waiving home inspections, multiple offers with intense bidding wars and properties selling before they’ve been listed or shown are now over. Instead, buyers have more room to negotiate, which is resulting in more price adjustments and longer listing times before a sale. These are signs that the market is becoming more balanced, and that means a more level playing field between buyers and sellers.

This is important because a more competitive market is a much healthier one than we’ve experienced in recent years. This is especially true today given the increased scrutiny our industry is facing from the U.S. Department of Justice and several class action attorneys who have filed a series of lawsuits questioning the Realtor® organization’s MLS rules and the methodology in which brokers are compensated. As a result of these challenges to the way business is currently conducted, it’s imperative that brokers and agents take the time to educate clients and consumers on the business skills, market knowledge and industry experience you possess and bring into the transaction.

Significantly, it is you, the Realtor®, who has the expertise to be the trusted advisor buyers and sellers can rely on to help them navigate what is likely to be the most complex and largest financial transaction they’ll ever complete. In addition, it’s Realtors® who know the local communities better than most and are in the best position to help consumers tackle the unfamiliar financial and legal hurdles that can arise during a home purchase or sale.  In short, as a Realtor® you provide an incredible value to your clients and help empower consumers during what is often a highly stressful and lengthy process for them.

You have ever reason to be proud of the work you do to help consumers realize the American Dream of homeownership.  As a real estate professional, I strongly encourage you to make a personal commitment to educating the public about the pro-consumer and pro-competitive work you do.  First and foremost, it’s time to raise awareness and understanding among the public of the significant role local MLS broker marketplaces play in the value you provide to clients. These platforms ensure equity, transparency, efficiency and market-driven pricing options for homebuyers and sellers. Unfortunately, most consumers don’t know the term MLS or how local broker marketplace benefit them. So, as an industry we need to inform them, and as real estate practitioners you need to tell them.

Most notably, local broker marketplaces foster competition and choice for consumers by enabling many different service and fee business models, ranging from varied compensation models to flat fees.   Meanwhile, access to inventory and widespread advertising, along with the practice of the listing broker paying the buyer brokers’ compensation, incentivizes local broker participation.

Local broker marketplaces also create access and opportunity for consumers through delivery of accurate and transparent information to everyone involved in the transaction, and they provide instant exposure to the largest possible pool of potential buyers for sellers and the greatest number of housing options for buyers.

Ultimately, Realtors® help people achieve homeownership, the best and most accessible way for American families to build generational wealth. To this end, the National Association of Realtors®, along with the Greater Boston and Massachusetts Associations of Realtors®, are working tirelessly to promote these facts and all the good you do on a daily basis to consumers, the media, and elected public officials.  I hope you will join with us in doing your part to further amplify these messages.

You can do this by visiting competition.realtor to arm yourself with information to educate clients, friends and neighbors. Share the content you find there on social media or send relevant infographics to your clients.  In addition, check out the Consumer Resources section at gbar.org for materials you can use to communicate the value you bring as a Realtor® to the property transaction.

Although the market is shifting and there are some tough headwinds facing our industry, I see plenty of reasons to be optimistic about the future of the real estate profession not only because of the competitive nature of the business, but it’s typically times like these when Realtors® tend to best demonstrate the immense value they provide to consumers.

John Dulczewski is executive vice president of the Greater Boston Association of Realtors®.