Soft skills have become increasingly crucial in light of the National Association of Realtors’ commission suit settlement and subsequent rule changes, according to OJO Labs CEO Chris Heller.
September marks a return to basics at Inman. As the real estate industry adjusts to the post-settlement era with new commission regulations, real estate professionals nationwide will share their successful strategies, system adaptations, and personal investments.
Searches in the US for “new real estate rules” surged by 250 percent in August due to the National Association of Realtors (NAR) settlement rule changes that took effect on Aug. 17, as reported by Google Trends.
These changes, which eliminate buyer-broker compensation from the multiple listing service (MLS) and mandate a buyer agreement before showing homes, now require buyer’s agents to negotiate their commissions with buyers. This shift may lead to commission compression, a more competitive industry, and heightened importance for Realtors to efficiently sell properties.
Deloitte Insights indicates that 92 percent of companies emphasize the significance of soft skills over hard skills in today’s business landscape — particularly considering NAR’s report that 61 percent of homebuyers rely on real estate agents for guidance.
To identify the essential soft skills in the industry, I conducted a study for Agent Advice titled “Essential Soft Skills for US Real Estate Agents in 2024,” which analyzed over 9,000 U.S. real estate job descriptions to determine the key soft skills needed by agents to generate leads.
As the real estate sector adapts to the NAR commission suit settlement and rule changes, let’s focus on the four most critical soft skills agents require today.
Effective Communication
Communication ranks as the top soft skill for real estate agents in every U.S. state. Realtors must ensure clear communication with clients to navigate the new NAR regulations.
Before engaging with clients, agents should verbally and in writing explain the implications of these changes for both buyers and sellers to ensure clarity on the next steps.
Motivation for Industry Adaptation
Motivation skills are the second most valued soft skills for agents, featured in 3,843 real estate job descriptions.
Maintaining motivation to stay informed about industry shifts and how to navigate them will remain crucial for Realtors.
Organizational Skills for Navigating NAR Changes
Organization, present in 40 percent of job descriptions, is the third most valued soft skill for real estate agents.
Realtors may understandably have concerns about how the NAR changes will impact their income; it is advisable to stay organized and seek guidance from local and state Realtor Boards to align business practices with the new regulations.
Importance of Negotiation Skills
Negotiation skills rank fourth, listed in 39 percent of job descriptions, and are likely to become the most crucial skill for Realtors in the industry’s evolving landscape as negotiations become essential for setting agent compensation.
Enhancing negotiation abilities is imperative, given NAR’s findings that 46 percent of homebuyers rely on real estate agents for negotiating favorable sales contract terms.
Final Thoughts
It is evident that real estate agents must focus on enhancing their soft skills to thrive, whether through personal research or formal training from industry experts.
Continuous upskilling will be vital for navigating the new NAR regulations in an increasingly competitive environment. While demanding in the short term, the long-term benefits will be substantial.
Chris Heller, a best-selling author, is currently the Chief Real Estate Officer at Ojo Labs. He also serves as an Advisor and Head of the Editorial Board for AgentAdvice.com. Connect with him on Facebook and LinkedIn.
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