The home buying process has significantly changed recently, particularly in the dynamics between homebuyers, sellers, and the real estate agents facilitating the sales transactions. These changes, stemming from a negotiated settlement in a court case, redefine how home sellers compensate agents for the buyers of their homes. In this evolving landscape, NAREB Realtists, who frequently represent Black families looking to buy a house, demonstrate unwavering dedication while playing a crucial role in providing exceptional advice and service and ensuring that Black families are not left behind in these changes.
The National Association of Real Estate Brokers (NAREB) wants to assure Black families and individuals that our Realtists will continue to offer exceptional advice and service. NAREB is concerned that the changes could affect the affordability and accessibility of homeownership for Black families. NAREB is committed to mitigating these impacts.
Since 1947, NAREB has been at the forefront, training real estate professionals to provide Black consumers with sound advice on home sales and purchases. Our consistent and unwavering advocacy for policies and practices that promote Black homeownership is a testament to our commitment. A year ago, NAREB launched the Building Black Wealth Tour, a powerful initiative that has already hosted over 100 community events nationwide. It equips Black consumers with the knowledge, counseling, and guidance they need to become homeowners and build intergenerational wealth that will strengthen our families and communities.
Our next Building Black Wealth Day Tour Event is from 10 a.m. to 3 p.m. at Antioch Missionary Baptist Church, 21311 N.W. 34th Ave., Miami Gardens, FL 33056.
The settlement in the court case shifts the cost burden to buyers by decoupling the commission paid to buyer brokers from the seller’s proceeds. This could make competent representation more expensive or less accessible, particularly for Black buyers, often first-time homebuyers, who already face significant challenges in the housing market.
“One of the biggest challenges for Black and other minority buyers is that many are first-time buyers and the first among their generation in their families to purchase property,” said Dr. Courtney Johnson Rose, NAREB’s President. “NAREB fears that the efforts to address antitrust concerns through the settlement have created the unintended consequence of creating a new set of concerns that will make homeownership even more elusive, particularly for Black families.”
Realtists – real estate professionals and agents who are members of NAREB – represent buyers in more than 70% of their sales. “Black homebuyers need buyer-side representation,” said Dr. Rose. “This settlement will make this representation more expensive and less accessible – hurting our Realtists and Black homebuyers at a time when we are all working to close the Black-White homeownership gap.”
Moreover, the settlement terms may lead to more “pocket listings” where houses are sold with limited public listing, which can easily be used to eliminate minority home buyers from purchasing in certain areas. These listings are not widely advertised, making it difficult for minority buyers to find and buy homes in specific neighborhoods. A ‘pocket listing’ is a property that is for sale but is not listed on a multiple listing service (MLS) or advertised to the general public. Instead, it is marketed privately or to a select group of potential buyers, often excluding minority communities.
Even before the potential settlement, pocket listings were on the rise. According to Redfin, pocket listings nearly doubled nationwide from 2.4% in November 2019 to 4% in March 2021. They are higher in some markets than others. In markets like Kansas City, Columbus, and Minneapolis, pocket listings had reached 10%, and in Chicago, they were 15%. Our nation has many segregated communities, and pocket listings perpetuate housing discrimination.
“With the changes in seller and buyer agreements, it’s crucial to focus on the trusted advisers, NAREB Realtists,” said C. Renee Wilson, NAREB’s executive director. “Our real estate professionals, who often represent buyers, are best positioned to help Black families achieve the American Dream of owning a home. With their wealth of data and information, they will guide families through the changes and ensure that informed decisions are made. We can’t allow the changes dictated by the courts to become new barriers in our quest to increase Black homeownership and build Black wealth.”
NAREB believes concerted efforts must be made to enforce and strengthen policies that ensure transparency and fairness in housing listings. New regulatory measures could include mandating that all properties be listed publicly for a minimum period before any sale is finalized, thus giving Blacks and other underrepresented communities a better chance to participate in the housing market.
We recognize that the settlement is bringing dramatic changes to our industry,” said Dr. Rose. “Our members often represent Black families and individuals who struggle to raise money for the down payments needed to purchase homes. Paying the commission for their agent will be an added burden. NAREB will help our members navigate these changes and continue to create avenues for them to thrive.”
New government policies that increase downpayment assistance would help ease that pain. It would also help if the government had policies that provide credit breaks or subsidized low—and moderate-income home buyers who now have to pay their agents.
NAREB has taken steps, including:
- Appointing a special task force that is studying the projected impact of the settlement on its members, as well as the Black community. The task force will recommend how the organization can best assist its members and prevent the settlement from limiting the growth of Black homeownership.
- Scaling up the NAREB Black Developer Academy, which provides technical assistance, training, and education to members who want to become community developers. This can provide additional revenue avenues while helping increase the housing inventory in communities of color.
- Using the NAREB Building Black Wealth Tour and the 2nd annual NAREB National Building Black Wealth Day on April 12, 2025, to strengthen the connection between our members and the communities that they serve. While we educate Black consumers on purchasing homes and building wealth, our members will also explain the services and value they can bring to our communities.
Over the decades, resilience has been a dominant trait that Realtists possess in countering the many challenges Black families faced while trying to become homeowners. Be assured that NAREB is diligently working on avenues to pursue so our members can thrive in this new environment and ensure that we will continue to be here as our community’s trusted advisor and a significant resource for families to lean on.
