Real Estate From The Trenches

NAR Reconsiders SOP 10-5 Amid Free Speech Concerns

May 26, 2025

The National Association of REALTORS® (NAR) is set to consider revisions to Standard of Practice 10-5 at its upcoming June 2025 Board of Directors meeting. These proposed changes aim to address longstanding concerns about the scope and enforcement of the standard, which prohibits REALTORS® from using harassing speech, hate speech, epithets, or slurs based on protected characteristics.

Since its adoption in 2020, SOP 10-5 has been criticized for potentially infringing on members’ freedom of speech, particularly in contexts unrelated to their professional real estate activities. Notably, there have been instances where REALTORS® faced disciplinary actions for expressing personal religious beliefs outside of their professional roles. For example, Wilson Fauber, a Virginia REALTOR® and ordained minister, was found in violation of SOP 10-5 after reposting a Bible verse on his personal Facebook page. The post, which supported the biblical view of marriage, led to ethics complaints and potential penalties, including fines and loss of REALTOR® membership .

Clear Cooperation No Longer Clear-Cut as Howard Hanna Breaks Away

May 24, 2025

Hanna Rejects NARS clear Cooperation Policy

Howard “Hoby” Hanna didn’t mince words in his interview with Inman this week. The CEO of Howard Hanna Real Estate Services drew a hard line in the sand, declaring that his company will no longer view the National Association of Realtors’ Clear Cooperation Policy (CCP) as binding. “We’re giving our sellers and ourselves choice,” Hanna said, emphasizing the need for flexibility, innovation, and freedom from what he called “the edicts of organized real estate.” His broader point echoes what I’ve written about before—real estate is local, not one-size-fits-all. National policies that fail to respect the uniqueness of individual markets create confusion, increase legal risk, and ultimately don’t serve consumers or agents well.

Hoby’s argument, that MLSs should control their own participation rules rather than enforcing blanket NAR mandates, aligns with what many of us in the industry have been quietly thinking (although I’m not always so “quiet” on it). As the structure of compensation and cooperation continues to unravel post-NAR settlement, it’s time for brokerages to evaluate their models. I’ve long said that giving buyers and sellers more transparency and agents more tools is the path forward, not adding layers of compliance. Hanna’s defiance may seem bold, but it’s likely just the beginning. As he put it, “We actually think other people should take a hard look.” I think they will.

Rocket, Redfin, and the Real Estate “Renaissance”: Wall Street’s Take from the Trenches

May 22, 2025

Zillow vs Costar vs MLS - Wall streets take on the real estate industry

I just finished Rob Hahn’s latest Notorious POD episode with Ryan Tomasello, managing director and equity research analyst at KBW (see his profile here). The episode is required listening for anyone trying to understand what’s really coming next for our industry. You’ll find the full episode embedded below.

Wall Street analysts are calling this a real estate “renaissance.” This is not business as usual. As Tomasello pointed out, there’s no modern industry that’s seen this kind of disruption—not even the taxi/Uber fight compares. We are watching the foundation shift in real time.

Mortgage Leaders See Easing Rules, Rising Optimism Under Trump

May 21, 2025

Trump rolls back regulation on mortgage industry

The Mortgage Bankers Association (MBA) is signaling a more optimistic tone in the early months of President Trump’s return to the White House. Speaking at a recent secondary mortgage market conference in New York, MBA President Bob Broeksmit outlined what he sees as a positive turn for the mortgage and housing finance industries, crediting early regulatory pullbacks and a more industry-friendly approach out of Washington.

According to reporting from Mortgage News Daily, Broeksmit said the group jumped in right after the election, getting in front of key decision makers and making their case. Since January, the MBA has had steady conversations with the administration, Congress, and housing agencies, pushing for fewer regulatory barriers and more space for the industry to operate.

Fed Report: NAR Settlement Hasn’t Moved Commissions Much Yet

May 16, 2025

Why buyer agent commission haven't dropped

The Fed’s new report takes a deeper look at commissions just as the industry is adjusting to the fallout from the $418 million NAR settlement. That settlement banned listing offers of compensation to buyer’s agents and required written agreements spelling out how buyer agents will be paid. A lot of folks expected this to push commission rates lower fast, or even shake up the business model. But so far, the data says otherwise. Nationally, buyer agent commissions have only dipped slightly over the past couple of decades, from about 3% to 2.7%, and most of that change happened long before the rule shift.

What’s more, the Fed found that policies like buyer agency agreements and rebate bans didn’t do much to move the needle. The bigger driver seems to be local custom and home prices. Areas with higher home values tend to have lower percentage rates, but the traditional split is still common in many places. The big question now is whether buyers, when asked to agree upfront to pay their agent, will start questioning the value more directly. If that happens, we might finally see some real changes to how agents get paid.

U.S. Foreclosures Climb Again: April Sees 14% Annual Jump

May 15, 2025

After declining sharply during the pandemic, foreclosure activity in the U.S. is continuing its slow but steady return to pre-COVID levels. According to ATTOM’s newly released April 2025 U.S. Foreclosure Market Report, foreclosure filings, including default notices, scheduled auctions, and bank repossessions, hit 36,033 nationwide last month. That’s a slight 0.4% uptick from March, but a more notable 13.9% increase from a year ago.

While that number still doesn’t come close to the monthly volumes we saw during the Great Recession, it’s the direction, and persistence, of the trend that’s worth watching. Rob Barber, CEO of ATTOM, summed it up plainly: “April’s foreclosure activity continued its gradual climb, with both starts and completions up annually… the year-over-year increases may suggest that some homeowners are beginning to feel the effects of persistent economic pressures”.

Wire Fraud Is the Real Estate Threat Most Buyers Don’t See Coming

May 14, 2025

Wire Fraud Is Targeting Homebuyers and Sellers – and Most Don’t Even Know It’s Happening

House Tax Bill Could Be a Game-Changer for Real Estate… Here’s Why

May 13, 2025

There’s a massive piece of legislation working its way through Congress right now… fittingly titled The One, Big, Beautiful Bill… and it includes several key provisions that could deliver real value to homeowners, investors, and real estate professionals alike.

Let’s start with taxes… the bill locks in the lower income tax brackets from the Tax Cuts and Jobs Act, preventing a tax hike in 2026. It also makes the higher standard deduction permanent… meaning more take-home pay for many households. In 2026, for example, a married couple filing jointly would get a $32,600 deduction under this proposal… double what it would be otherwise.

The Most (and Least) Affordable States for Homebuyers

May 7, 2025

Most and least affordable states for housing

Housing affordability isn’t what it used to be—no surprise there. But according to a new analysis from Realtor.com, some states are still holding their own when it comes to the balance between home prices, income, and new construction. And a few names at the top of the list may surprise you.

South Carolina snagged the top spot as the most affordable state in the country, earning an overall “A” with a relatively low median price ($354,429), reasonable income-to-price ratio, and—here’s the kicker—a negative new construction premium. That means new homes there are actually selling for less than existing ones, which is about as rare as a stress-free appraisal these days.

Agents Are Making More Money—but Losing Faith in NAR, Survey Finds

May 6, 2025

A newly released industry survey puts some hard data behind the shift many agents have been sensing: higher income potential, yes—but also higher dissatisfaction with the profession and its institutions. The survey, conducted by Redfin in partnership with Ipsos, focused on 500 non-Redfin agents who closed at least one deal in 2024. Among its most striking findings: while nearly 30% of agents reported earning over $100,000 last year, only 21.2% would recommend real estate as a career. And over half now say they hold an unfavorable view of the National Association of Realtors (NAR)—up sharply from just 19% the year before.

As the chart below shows, more agents are getting deals done. In 2024, 72.2% closed more than five sales, up from 63% in 2023. Incomes rose in step, with 58% earning over $50,000 compared to 49% the prior year. But performance isn’t the whole picture. The Redfin survey highlights growing pressure from commission negotiations, uncertainty about brokerage support, and sharp disillusionment with NAR following last year’s $418 million settlement. Nearly four in ten agents say those changes have already hurt their business, while over half report more clients are trying to haggle commissions. It all adds up to a real disconnect: the deals are getting done, but confidence in the industry’s leadership is slipping fast.

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