Reclaiming Our Time: How the NAR Settlement Killed the Tire Kicker
Some of you may have never had to represent anyone that showed interest or came in the door to your brokerage, but I did—not claiming my behavioral health diagnosis is based on representing tire kickers, but I do have occasional flashbacks.
A "just one more question" text at 9 p.m. The sinking feeling when a "serious buyer" asked if they could "just see what $3 million buys these days." The seventh property a flipper turned down because "the numbers don't work." These clients—opportunities to learn some hard lessons—were ubiquitous throughout my career; recently a gift was received from an unlikely source.
Not everything about the National Association of Realtors (NAR) settlement has had a negative consequence; one silver lining is the death of the tire kicker.
Every cycle had its version, back in 2003 (the before times in the long long ago) before HGTV and the Great Recession, it was couples "looking for inspiration." After the mortgage meltdown, it was "the investor." In the 2010s, it was "the flipper," followed by "Zillow leads." Thankfully, Redfin absorbed much of the tire-kicker crowd, and now—cue the Wizard of Oz soundtrack—ding dong, the NAR settlement has destroyed the tire kicker for good.
Buy or Bye Bye
Pre-settlement, tire kickers cost agents countless hours and resources without any guarantee of a payoff. Now, mandatory Buyer-Broker Agreements (BBAs) force the compensation chat upfront, deflecting interest from unqualified buyers and providing actionable compensation clarity from day one[1].
Unfortunately, these days every new client conversation begins with the essential question, 'How will you cover my fee if the seller doesn't?' meaning we must discuss compensation even before setting up an Multiple Listing Service (MLS) search.
However, the new NAR settlement rules now require a written agreement specifying compensation before we go on tours[1], which is helpful because it naturally filters out buyers who are not serious about committed representation. This important shift means we can now save time and focus our energy only on clients who are truly serious and qualified.
Paperwork
I would get this tattooed on agents if I thought it would be helpful: Fill out your agency disclosure (AD), turn in your agent's visual inspection disclosure (AVID) with your listing paperwork, and get your buyer broker agreement (BBA) signed before you take a buyer out!
Tiered agreements, like a $2,000 retainer for limited service or a lower percentage for full representation, let clients choose their commitment level. Short-term BBAs (30-day trials) test seriousness without long-term risk, ensuring I invest time only in motivated buyers.
For now,
Despite all the negative consequences caused by the NAR settlement there has been one positive change, we get to reclaim our time from timewasters. That shift from volume to quality is the upgrade this industry needed, and for agents willing to have the hard conversations, the payoff is a more sustainable, respected career.
Sources Cited
[1] National Association of Realtors. "NAR Settlement FAQs"
