Let Interstate Relocation Guide You Through the Latest Upheaval in Real Estate

The process of buying and selling a home in the United States just changed dramatically. As part of the $418 million settlement announced in March by the powerful trade group the National Association of Realtors, the informal rules which propped up the industry’s traditional payment structure will be eliminated. Under the old system, home sellers were typically on the hook to pay a 5% or 6% commission, usually split between their agent and the agent representing their home seller. The new rule changes kicked off Saturday, August 17.

“While the settlement comes at a significant cost, we believe the benefits it will provide to our industry are worth that cost,” said Kevin Sears, president of the NAR, in a statement.

These rule changes are sure to affect several other industries, including global mobility. Real estate agents often play a vital role in employee relocation, serving as key facilitators in the transition to a new environment. They possess in-depth knowledge of local housing markets, helping relocated employees find suitable accommodations that match their needs and budgets. For employers, partnering with skilled real estate agents can streamline the relocation process, reducing stress for the employee and ensuring a more efficient transition, ultimately contributing to higher satisfaction and productivity in the new location.

Now, the real estate industry is scrambling to come to terms with the NAR rule changes and what they will mean for home buying and selling. At the same time, companies with global mobility programs—or any company looking to relocate an employee—need to start considering this new real estate environment.

“The impact to corporate relocation programs could play out in many ways,” said Cathy Ware Partridge, Director of Global Relocation, Business Development and Client Services for Interstate Relocation. “It could take a year or more for each market to adjust after the settlement takes effect. Relocating employees need support to understand the real estate market in their destination location, someone who can quickly and effectively manage their transition process. Mobility programs also need to consider whether they want to make immediate policy changes to address new situations or to wait until new trends and practices start showing up.”

While companies and employees alike may want to take a wait-and-see approach to upcoming relocations, Relocation Management Companies (RMCs) like Interstate Relocation are working overtime to stay ahead of these seismic policy shifts. Interstate is training account managers and service team members on the potential impact, and on what to watch for in buyer agency agreements. Our counselors are advising relocating employees on the pending changes and helping them to effectively navigate their specific real estate needs. If you’re looking for information on how employee relocation can affect your taxes, we have an eBook available for download.

This evolution in the real estate landscape means that relocation programs will need to adapt, ensuring that employees are well-informed and that new agreements are negotiated with realtors to align with the changes. Interstate has decades of experience in providing seamless relocations. We take pride in keeping employers and employees informed every step of the way. The future of real estate may be uncertain, but Interstate’s commitment to excellence in global mobility remains as certain as ever.