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The Changing Landscape of Real Estate: What You Need to Know

Kyle Madorin March 6, 2025

Real estate is always evolving, and staying ahead means understanding the shifts happening in the industry. On Real Estate On The Up, my goal is to pull back the curtain and give you an unfiltered look at what’s really happening in the market.

I don’t just want to sell homes—I want to help buyers, sellers, and investors navigate real estate with clarity and confidence.

In this episode, we covered some of the biggest changes impacting real estate today. Whether you’re thinking about buying, selling, or just curious about how things are shifting, here’s what you need to know.

The Real Estate Market Is Changing—Here’s How

Real estate never stands still. In the past year, we’ve seen significant shifts in how transactions work, how agents get paid, and what that means for buyers and sellers.

1. Buyer’s Agent Compensation Is Different Now

One of the most significant changes in the industry comes from legal action that has reshaped how buyers’ agents get paid.

  • In the past, a buyer’s agent’s commission was usually included in the seller’s listing agreement.

  • Now, buyers must sign an agreement upfront to clarify how their agent will be compensated.

  • This means more transparency for buyers—they will know exactly what services they are getting for their money.

  • Agents will now negotiate their commissions directly with buyers, and in some cases, buyers may have to cover part of the commission if the seller does not.

For buyers, this is a positive shift. It ensures they receive clear, dedicated service without any hidden costs. For agents, it means they must prove their value more than ever before. Having a mortgage broker to help navigate financing options can also make a major difference, ensuring buyers understand their financial position before committing to an agreement.

2. Interest Rates and Housing Prices Are Adjusting

The housing market has been on a rollercoaster ride, and 2025 is shaping up to be a pivotal year.

  • Interest rates skyrocketed to 7% and above, causing many buyers to hold off on purchasing.

  • Predictions suggest that rates could drop into the 5% range, making homeownership more affordable again.

  • Home prices have climbed dramatically over the past few years, but they are starting to level out.

  • As interest rates drop, more buyers will return to the market, increasing demand.

  • At the same time, sellers will need to adjust their expectations, as homes may not appreciate as quickly as they did from 2020-2022.

What does this mean? It’s a more balanced market, where both buyers and sellers will have to negotiate strategically. Keeping up with market trends by listening to real estate podcasts can provide valuable insights on where things are headed.

3. Choosing the Right Brokerage Matters More Than Ever

For those considering a career in real estate, picking the right brokerage is one of the most important decisions you can make.

  • Many new agents jump into the first brokerage they meet without fully researching their options.

  • Some brokerages, particularly large teams, take credit for an agent’s sales, which can impact future opportunities.

  • It’s essential to interview at least three types of brokerages before making a decision:

    • Franchise brokerage (e.g., Keller Williams, RE/MAX) – Structured, offers strong training, but may have high fees.

    • Boutique brokerage – More independence, often smaller and locally focused.

    • Hybrid brokerage – A mix of both, like a smaller brand that partners with a national network.

New agents should ask about commission splits, mentorship opportunities, and transaction support before committing.

4. Building a Client Base Through Relationships, Not Just Leads

Gone are the days when real estate agents could rely solely on cold leads from online sources. The best agents are building relationships within their communities.

Community Events as a Lead Generation Strategy

One of the most effective ways to connect with potential clients is by hosting local events.

  • Neighborhood movie nights: Set up an outdoor screen, provide snacks, and let families enjoy a fun evening. A simple way to build trust.

  • Garage sales: Organizing and promoting community-wide garage sales brings people together while positioning you as the local real estate expert.

  • Networking through local businesses: Partner with small businesses to host joint events, from coffee meetups to holiday celebrations.

Circle Prospecting: A Warmer Approach to Outreach

Instead of cold calling, agents are using circle prospecting, a strategy where they reach out to people in specific communities with valuable information.

  • Call or visit neighbors to invite them to events.

  • Offer local market updates instead of a hard sales pitch.

  • Provide resources on home values, mortgage rates, and real estate trends.

This approach builds genuine connections and leads to referrals and long-term clients.

5. The Future of Real Estate in 2025

Looking ahead, real estate is entering an adjustment period. Here’s what to expect:

  • Homes will take longer to sell – Average days on market could reach 60-90 days, making pricing strategy essential.

  • Interest rates will gradually decline, opening up affordability for more buyers.

  • Sellers will need to be realistic about home values, as rapid appreciation is no longer guaranteed.

  • Technology and AI tools will become more important, helping agents and buyers analyze market trends and find properties faster.

The real estate market is shifting, but one thing remains the same—strong relationships and expert guidance matter more than ever.

Why Staying Informed is Your Best Investment

Whether you’re buying, selling, or just trying to navigate this evolving market, knowledge is your best tool. Understanding the changes in commissions, interest rates, and brokerage structures can make all the difference.

As the real estate landscape continues to shift, the best agents will be the ones who adapt, educate, and put relationships first. If you’re thinking about buying or selling, now is the time to start planning and partnering with an expert who can guide you through the process.

Ready to gain deeper insights into the real estate market and make smarter decisions?

Tune in to Real Estate On The Up

Our podcast features industry leaders and seasoned professionals who share their expertise and experiences. Each episode is designed to keep you updated on the latest trends and equip you with the knowledge needed to succeed in today’s market.

Whether you’re a first-time buyer, a seasoned investor, or a curious homeowner, Real Estate On The Up is your go-to resource for all things real estate. Join us, and let’s explore the ever-changing landscape of real estate together.

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