If we want to shape the future of real estate, we need to know where we’ve been. Looking back at the history of real estate compensation and representation helps us see how the industry has changed—and how much of it is still up to us to shape. By understanding the past, we can make smarter decisions about where we’re headed.
This series takes you through the key moments that have influenced real estate practices in the United States, starting from the colonial days and leading up to the present. We’ll look at how the roles of real estate agents have evolved, how compensation structures have changed, and how legal and technological shifts have impacted the industry. By the end, you’ll have a clearer picture of how these developments have shaped the world of real estate today.
Key Points:
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Where It All Began: Get a sense of how real estate practices started during the colonial period, focusing on land deals and the early role of agents.
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Professionalization: Find out how real estate boards emerged in the 19th century, bringing more structure and ethics to the profession.
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Tech’s Impact: Learn about the game-changing technologies, like the Multiple Listing Service (MLS), that transformed real estate practices starting in the mid-20th century.
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New Business Models: See how consumer-focused models, including iBuyers and flat-fee services, change how agents get paid and do business.
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Legal Shifts: Understand the impact of legal battles, like the 2024 NAR lawsuit, on how commissions are handled and what it means for transparency in the industry.
What’s in the Series:
We start in the Colonial Period and Early Republic (1600s—1800s), where we look at how land speculation and informal agents got the real estate ball rolling in America.
Moving into the 19th Century, you’ll see how the rise of cities and the formation of real estate boards began to set the standards that still influence the industry today.
The Early 20th Century saw the founding of the National Association of Realtors (NAR) and the shift toward exclusive representation, which laid the groundwork for modern real estate practices.
In the Mid-20th Century, the MLS and more robust legal frameworks around fiduciary duty changed how properties were marketed and sold.
As we enter the Late 20th Century, the focus shifts to the rise of buyer representation and the increasing complexity of dual agency, which significantly altered real estate transactions.
The 21st Century (2000 to 2023) saw massive changes driven by technology and consumer-focused business models, further evolving how agents get paid and how they operate.
Finally, we cover Current Trends from 2023 Onward, where the impact of the NAR lawsuit settlement is pushing the industry toward more transparent and consumer-friendly practices, with new models of agent compensation emerging.
The Takeaway: Evolution of Real Estate Representation
The history of real estate compensation and representation shows that the industry constantly evolves. By understanding where we’ve been, we can make better choices about our future. This series will give you a complete view of how the real estate industry has changed and help you think about how to navigate its future. The past is full of lessons that can help us build a better, more innovative, and more transparent real estate industry moving forward.
