The Startups of the Post-Settlement World
Meet the new companies and concepts looking to capitalize on the new NAR guidelines
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Last month, a new set of guidelines governing the relationship between real estate agents, buyers, and sellers went into effect. In response to a settlement reached with the Department of Justice earlier this year, the National Association of Realtors agreed to make a number of significant changes to its rules, most notably by prohibiting requirements that commissions be posted in the MLS, effectively ending the practice of listing agents paying buyers’ agent commissions.
Starting August 17th, those new rules are now in force.
We’ve covered the implications of these changes in previous Thesis Driven letters (here and here). But today’s letter will explore the companies that are aiming to take advantage of the changes, whether by creating new brokerage models, providing agent alternatives to buyers, helping brokerages adopt technology, or providing other ways for agents to add value.
Today’s letter will cover:
Likely implications of the rule changes;
Four big categories of opportunity for new companies;
Several examples of new companies in each;
Predictions of where things might go from here.