Searches in the US for “new real estate rules” increased by 250 percent in August due to the National Association of Realtors (NAR) settlement rule changes that went into effect on Aug. 17, according to Google Trends.
Due to those rule changes, which remove buyer-broker compensation from the multiple listing service (MLS) and require a buyer agreement be in place with clients before showing homes, buyer’s agents have to negotiate their commissions with buyers. These changes may force commission compression, create a more competitive industry, and make it essential for Realtors to sell properties efficiently.
According to Deloitte Insights, 92 percent of companies report that soft skills matter more than hard skills in today’s business world — especially as NAR reports 61 percent of homebuyers rely on real estate agents to help them understand the process.
To identify the industry’s most important soft skills, I wrote a new study for Agent Advice, “Essential Soft Skills for US Real Estate Agents in 2024,” which analyzed over 9,000 U.S. real estate job descriptions to find out what soft skills agents need to generate leads.
As real estate adjusts to the NAR commission suit settlement and subsequent rule changes, let’s zoom in on the four most critical soft skills agents need today.
Communication is key
Communication is listed as the top soft skill for real estate agents across every U.S. state. Realtors need to ensure they’re communicating with their clients clearly to navigate the new NAR changes.
Before working with clients, agents should inform them verbally and in writing of what these changes mean for homebuyers and sellers so everyone is clear on the next steps.
Motivation to stay on top of the industry’s changing landscape
Motivation skills are ranked as the second-most-valued soft skills for agents, appearing in 3,843 real estate agent job descriptions.
Staying motivated to remain up to date with industry changes and how to work with them will continue to be an essential part of a Realtor’s repertoire.
Organization will be essential in navigating NAR changes
Appearing in 40 percent of all job descriptions, organization is the third-most-valued soft skill for real estate agents.
Understandably, Realtors may be worried about if and how the NAR changes will affect their income; we encourage them to stay organized and use their local and state Board of Realtors to get the right information on how to align their business practices with the new laws.
Negotiation skills are especially important
Negotiation skills come in fourth place, listed in 39 percent of job descriptions, and will arguably become the most important skill Realtors possess in the industry’s new landscape as this soft skill becomes a necessity for agreeing on agent compensation.
Improving negotiation skills is also a priority, as NAR reports 46 percent of homebuyers count on real estate agents to negotiate better sales contract terms.
Final thoughts
It’s apparent that real estate agents will need to focus on improving their soft skills to be set up for success, whether this is through their own research or paying for official training by industry experts.
Upskilling will be a key part of navigating the new NAR changes in an even more competitive landscape. While it will be extra work in the short term, it will pay off in the long term.
Chris Heller is a best-selling author and currently serves as 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.
