HomeServices CEO: Ignore the noise, focus on winning clients 

Real estate continues to take it on the chin with negative portrayals of agents — particularly around commissions — but the new CEO of HomeServices of America said the industry needs to continue combating those perceptions with transparency.

Chris Kelly, who moved into the CEO role in April, said he was surprised by the narrative presented in a New York Times podcast featuring reporter Debra Kamin on April 29. Kamin discussed the policy changes made by the National Association of Realtors following its March 2024 settlement — and spoke at length about how real estate agents are "evading" the new rules.

Buyers still want to work with agents

Kelly said the podcast and other mainstream media coverage of the commissions litigation and settlement continues to fuel the idea that agents are not worth the fees they receive. The fact that homebuyers are now informed about commission fees early on in the process — and agree to the costs and other terms before signing a contract — is a good indication that they want to work with an agent, Kelly said.

"The consumer seems to be speaking pretty clearly that they see value in the compensation exchange for the services they get when they hire a real estate professional," he told Real Estate News.

Instead of worrying about negative press, agents should continue to focus on explaining their value and connecting with potential clients, Kelly advised.

"I think that it's great to have more transparency on the front end so the buyer understands, before they even look at a property, how and when their real estate agents are going to be paid, and by who," he said, noting that while real estate agents rank low in some opinion polls, people generally have positive things to say about their own agent.

Are agents really trying to circumvent the rules?

In the podcast discussion, Kamin cited instances of agents using "creative" tactics to communicate commission fees on the MLS now that offers of compensation are prohibited on the platform. Examples of workarounds Kamin had heard about included agents posting a listing photo with three cookies on the kitchen counter or the movie "The Three Amigos" on the TV to signal that the buyer agent would get a 3% commission.

While Kelly admits there will always be some bad actors in any industry, he disagrees with the suggestion that many agents are bending (or breaking) the rules. Why, he wondered, would agents go to the trouble of using workarounds when there are plenty of other ways to talk about commissions that abide by the NAR settlement?

"If these isolated things are happening, they should absolutely be eradicated," Kelly said. "I was just kind of taken aback…. You don't have to do this wink, wink, touch your nose for this, because you can just call and ask."

Consumers care about the outcome, not the noise

Despite the media stories, Kelly said things look different on the ground. What he's hearing from agents is that sellers and buyers are largely focused on closing deals.

"It's the things we all have to remind ourselves as teenagers — which is the world isn't thinking about us as much as we feel that it is," Kelly said. Consumers are concerned about finding someone qualified to help them through the transaction, not about the questionable behavior of a few agents, he added.

Commissions 'relatively steady'

Kelly said agents under the HomeServices banner have seen a slight decrease in the average commission paid, but it varies by region and market conditions.

"The idea of a standard commission never made sense to us because when I look at what the average commission is in the Northern California market compared to the Midwest, they were dramatically different before the Sitzer verdict and the settlement," Kelly said. 

"If there is an overall trend, I would say commissions have remained relatively steady."