Jason Mitchell on the need for transparency and change in real estate

On today’s episode of RealTrending, we welcome Jason Mitchell, the founder and president of the Jason Mitchell Group. In 2023, JMG had over 8500 transaction sides and almost $4.2 billion in transaction volume according to RealTrends verified data.

Jason offers insight into the impact of the NAR settlement on the industry as well as the lack of transparency in the settlement agreement. JMG’s model focuses not only on buyer leads from lender referrals, but also a lot of veteran buyers, which he believes will be much more negatively impacted by changes in the commission model. He also talks about the Real Estate Agent Pledge, a commitment to educating clients about cooperative compensation and promoting transparency in the industry.

Here’s a glimpse of what you’ll learn:

• The NAR settlement will require buyer-broker agreements, which can create more loyalty between consumers and agents.
• The lack of transparency in the settlement, particularly regarding cooperative compensation, is a concern.
• Low-income buyers, such as veterans and those using down payment assistance programs, may struggle to afford out-of-pocket fees.
• The Real Estate Agent Pledge aims to educate clients about cooperative compensation and promote transparency in the industry.

Here’s a small preview of today’s interview. The transcript below has been lightly edited for length and clarity:

Tracey Velt: Commissions are often very, very confusing to consumers.

Jason Mitchell: The average person doesn’t really care about the real estate industry, right? We’re in it every day, but if you’re not in our industry, you’re not even paying attention to this stuff. But I do think that it’s going to be really important on the buy side to have full disclosure. It’s how you explain an educated consumer. If I tell you that I’m really excited to show you these houses. I have a representation agreement. It allows me to show you homes. When we do find the right home for you, I want to let you know that in most cases, my services will be paid for through a cooperative compensation through the purchase contract, which means that in most cases you may not have to come out of pocket and you probably won’t.

There may be some properties that do not offer cooperative compensation, in which case I will let you know upfront if we’re in that situation. You can also choose to not view those properties or we can still ask the seller at the time to see if they’re allowed to do so. The goal is to not have you pay out of pocket for my representation fees, but just know, I will let you know that upfront if we find ourselves in that situation.

If it’s explained like that, there’s not a single person that’s going to have an issue signing a representation agreement, but it’s how we explain it to the consumers, which is the important piece.

The RealTrending podcast features the brightest minds in real estate. Every week, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.