Tony Harrington, a Wilmington Realtor serving as this year’s president of NC Realtors, answered questions about recent changes in real estate rules that have garnered attention in 2024. As a result of the settlement of massive lawsuits, some of the changes went into effect in August, while others will start in October.

In addition to his state Realtors’ association role, Harrington is managing broker of Corcoran HM Properties at 5900 Oleander Drive.

What has changed when it comes to commissions for real estate agents?

Harrington: “In North Carolina, many of the mandates from the settlement have already been in place for decades, including that no standard commission rate is set or ever has been set. Commissions have always been negotiable. We have long prioritized transparency and honesty in real estate transactions. Fees are established in written buyer agreements between a seller and buyer. This means everyone involved has a mutual understanding and clear expectations about compensation.” 

How will recent lawsuit settlements impact Realtors in North Carolina?

Harrington: “I appreciate this question because what has often been lost in the settlement conversation is the concern that this change and often the coverage has created for our members. Please keep in mind that much of the coverage has focused on the immense industry of home buying and selling, but the reality is that behind the industry are hundreds and thousands of hardworking, independently owned small and mid-sized Realtors who, in addition to their professional life, are active members of their communities, PTA volunteers, board members, etc. The majority are also extremely dedicated to their clients and often go above and beyond to support a positive real estate transaction and understand the immense responsibility of helping their clients navigate this complex process.

“We firmly believe that this settlement (the $418 million settlement announced March 15 that was reached between plaintiffs and the National Association of Realtors) opens doors to new and different practices, including by building communication with both our members and the public (potential customers) on a larger scale. We welcome the opportunity to share more about the value our members provide their customers and will continue to find the best ways to convey those messages. Yes, there are growing pains with any high-profile industry change, but we believe it will be a change for the better.”

Would you consider this a groundbreaking ruling?

Harrington: “While this is a significant ruling and settlement, part of the settlement requires that Realtors utilize written buyer agency contracts on a go-forward basis. This has been a practice in North Carolina for decades. Had we not held the industry to these standards and practices for as long as we have, the settlement could have required an overwhelming change for the North Carolina real estate process.”

Turning to another big factor in the industry right now, how are interest rate changes impacting the market?

Harrington deferred to the latest report from National Association of Realtors Chief Economist Lawrence Yun, who said Sept. 6 that softening job figures suggest that the Federal Reserve will cut interest rates in mid-September, again on the day after the election, and possibly four more times in 2025.”