Challenges, opportunities and the choice to adapt — or die 

Thinking big about residential real estate success requires a big-picture perspective. Industry Decoded features industry experts who can enrich your understanding of issues affecting the industry as a whole.

The views expressed in this column are solely those of the author.

If you've been in real estate for any length of time, you know one thing for certain: The business never stays still for long.

Just when you think you've got a handle on the latest market dynamic or business model, the ground shifts under your feet, usually because of some external factor. In case you haven't noticed (and if not, you must be living under a rock), we're seeing one of those periods right now — and it's coming at us from two different directions: regulatory pressures that are changing how buyer agents get paid, and a market that's slowly but surely tilting away from sellers toward buyers.

Neither of these changes is fatal. In fact, for the professionals who adapt, they can be the start of a stronger, more sustainable business.

The legal shakeup: Lawsuits and compensation

The commission lawsuits — and I don't need to rehash every headline here — have forced the industry to rethink not only how buyer agents are compensated, but the structure of our industry as a whole. For years, we operated under a system where the listing side often offered compensation to buyer agents as part of the MLS cooperative structure. That model is now under intense legal scrutiny, and for the most part, dead.

Some have viewed these lawsuits as a threat to buyer agency altogether. I don't see it that way. What it does mean is that buyer agents can no longer assume their compensation is simply baked into the transaction and guaranteed. Going forward, agents must have clear, upfront conversations with clients about the value they bring — and an agreement on how that value will be paid for.

That's not a bad thing. In fact, it's more aligned with how many other professional services operate. Attorneys, financial advisors, consultants — all have long explained their value to clients and negotiated fees accordingly. Real estate is heading down that same path. The agents who can articulate why their skills, knowledge, and fiduciary responsibility are worth the fee will continue to do well. Those who rely solely on access to inventory or basic facilitation will find it harder, and most likely will not survive.

The market shift: From a seller's frenzy to a buyer's grind

At the same time, the market itself has been adjusting. After the sugar rush of the past few years — driven by historically low interest rates (aka cheap money generated out of thin air), limited inventory, and intense demand — we're now seeing a more cautious environment.

Home prices puffed up like a bodybuilder juicehead and remain high. Yet elevated interest rates have exerted extreme downward pressure on what buyers can comfortably afford. The result? Homes are sitting longer, price reductions are more frequent, and buyers are negotiating again. It is rapidly turning toward a buyer's market, and agents better listen up.

For many agents, especially newer ones who've only known a seller's market, this is unfamiliar territory. It requires a return to fundamentals: pricing accuracy, strong staging, managing seller expectations, and real negotiation skills. Buyer agents, on the other hand, are stepping back into a role where their guidance truly matters — evaluating pricing, spotting opportunities, structuring offers, and protecting their clients' interests all the way through closing.

What this means for agents: Adapt or die

The theme here is simple: adapt. The real estate agent who thrives in this environment will be the one who leans into education — both for themselves and for their clients. Buyers will need help understanding not only the transaction process but also why paying for professional representation is to their advantage. Sellers will need honest counsel about pricing and positioning. And agents will need to sharpen their negotiation, communication, and advisory skills — something many have not had to focus on since 2019.

Brokerages, too, must support their agents through this transition. Training, technology, marketing resources, and clear business models that fit the new compensation structure will be key. Did I mention training? Teach your agents how to price properties. Otherwise, their listing experience will be like trying to catch a falling knife — someone is bound to get cut.

Who will come out ahead

Yes, this is a period of disruption. But it's also a period of opportunity. The best agents will differentiate themselves not by how many deals they close, but by the depth of service they provide. Clients will continue to pay for expertise, protection, and most importantly, results. Those who embrace these changes and operate with integrity and professionalism will not only survive — they'll come out ahead.

Real estate has always rewarded those who know how to navigate change. This time is no different.

Phillip Cantrell is the founder and CEO of Tennessee-based Benchmark Realty LLC, which he has grown from one employee in 2006 to more than 1,500 today, with offices throughout Middle Tennessee, Southern Kentucky and Northern Alabama.

His 42 years of business experience include executive roles in operations and sales, and he has published numerous industry articles.