Top Real Estate News & What It Means for Agents: January 2026
- Sarah Bates
- Feb 3
- 6 min read
Stay up to date with the most important real estate news from January 2026—and our breakdown of what it all means for agents. Brought to you by SmoothTC — the company that keeps you prepared and helps you shine.
Tennessee REALTORS® adds New Compensation Form but it's not in the Purchase & Sale Agreement
How Buyer's Agents' can Incorporate TAR's New's Compensation Addendum/Amendment when Writing an Offer (Click to Read More)
The Tennessee Association of REALTORS® has introduced a new Compensation Addendum/Amendment (Form 620) that can spell out how much the Seller and/or Buyer will contribute toward the Buyer’s Agent commission.
Since the NAR settlement changes, Buyer’s Agents in Tennessee now have three distinct ways to document compensation:
Special Stipulations in the Purchase & Sale Agreement
RF 702 Compensation Agreement
NEW: Form 620 – Compensation Addendum/Amendment
Because a Buyer’s Agent generally shouldn’t put compensation in both the Purchase & Sale Agreement and a separate compensation agreement for the same deal, many Buyer’s Agents have chosen to use Special Stipulations in the Purchase & Sale Agreement to “lock in” the compensation terms as part of the original offer.
Form 620 is intended to be drafted after the Purchase & Sale Agreement is already accepted (similar to an amendment). That creates a potential problem:
If the Buyer’s Agent is relying on Form 620 being signed after the contract is executed, the Buyer could be exposed to uncertainty—because there’s no guarantee the Seller will agree to compensation terms later if they weren’t clearly accepted up front.
Also, because Form 620 functions like an amendment, it can override the Purchase & Sale Agreement terms related to compensation (if used to change those terms after the fact).
What this means for Agents: ⚠ Buyer Agent Warning: Do not assume that once the Purchase & Sale Agreement is executed, the Seller will later agree to sign Form 620 and provide Buyer’s Agent compensation. Continue to include your Buyer's Agent Commission in Special Stipulations of the Purchase and Sale Agreement or use RF 702 - Compensation Agreement (least popular from what I've noticed).
⚠ Listing Agent Warning: Do not accept Buyer’s Agent Compensation Terms in the Purchase and Sale Agreement and then use Form 620 to amend – continue to counter via separate Amendment so as not to accept the Buyer's original offer. Of course, RF 702 - Compensation Agreement can be used as well, but can't use RF 702 and have Buyer's Agent compensation listed in the Purchase and Sale Agreement.
Trump’s Housing Order Raises Eyebrows
President bans corporate homebuying and orders huge mortgage‑bond purchases, but experts ask: will it help? (Click to Read More)
Speaking at the World Economic Forum in Davos, President Donald Trump touted an executive order barring “large institutional investors” from buying single‑family homes and directed Fannie Mae and Freddie Mac to purchase up to $200 billion in mortgage‑backed securities. He also called for a temporary cap on credit‑card interest rates to help potential buyers save for down payments. Yet economists noted the order doesn’t define what qualifies as an institutional investor and that big investors account for only a small share of purchases. Realtor.com economist Jake Krimmel said the policy is unlikely to improve affordability or supply. Trump floated other ideas, such as allowing homeowners to depreciate their houses for tax purposes, but offered few details.
What this means for Agents: The corporate‑buying ban probably won’t materially shift Nashville’s market—Wall‑Street‑backed landlords own relatively few single‑family homes locally—but the announcement could make some sellers wary of investor offers. The $200 billion in mortgage‑bond purchases has already helped narrow rate spreads, supporting the low‑6 percent rates seen in January, which could benefit buyers. Agents should monitor implementation details and be ready to answer client questions about investor activity, financing options and potential tax changes.
NAR Doubles Down on Affordability and Advocacy
Realtor association outlines 2026 strategy to tackle housing costs and protect tax benefits (Click to Read More)
HousingWire’s coverage of the National Association of Realtors’ 2025 Annual Report highlights major advocacy efforts and 2026 priorities. The Congressional Real Estate Caucus grew to 100 members, and NAR funded more than 1,000 grants and initiatives to advance pro‑housing policies. The group claims its lobbying helped defeat $1.3 trillion in proposed real‑estate taxes over the past decade. Looking ahead, NAR’s strategic plan calls for promoting next‑generation homeownership, protecting mortgage‑interest and 1031‑exchange deductions, raising SALT and estate‑tax caps and expanding consumer‑facing education. The association aims to modernize and expand its consumer advocacy programs to engage diverse audiences.
What this means for Agents: Policy may feel distant, but it directly affects your clients’ wallets. Agents in Nashville should stay informed on tax‑policy debates—such as SALT cap changes and 1031 exchanges—because they can influence investor activity and move‑up buyers. NAR’s renewed emphasis on first‑time homebuyer education and legislative outreach presents opportunities to host workshops or partner with local associations. Engaging in advocacy at the city and state levels can help shape zoning and supply‑expansion initiatives that are critical for Middle Tennessee’s growth.
Record Share of Home‑Purchase Deals Fall Through
One in Six Contracts Canceled as Buyers Walk Away (Click to Read More)
A Redfin study reported that roughly 40,000 U.S. home‑purchase agreements were canceled in December 2025, equating to 16.3% of pending sales. That’s the highest cancellation rate for any December since at least 2017. Buyers in major metros—especially Atlanta (22.5%), Jacksonville (20.6%) and San Antonio (20.6%)—backed out after inspections or due to affordability concerns. Redfin economists noted that high prices and growing inventory make buyers more selective, and many are using inspection contingencies to renegotiate or terminate deals. Nashville saw 16.0% of contracts fall through.
What this means for Agents: Contract cancellations signal that buyers expect more flexibility. Nashville agents should prepare for renegotiations post‑inspection and counsel sellers to be ready to make further concessions before a bona fide seller walks away. Buyers may feel empowered to cancel if pricing or condition isn’t competitive or if there isn't a Seller instigated attitude of 'Let's work it out'. Listing agents can leverage this by pushing for more comprehensive inspections and being up-front on the MLS as to what their Sellers are willing to cover.
Legal fights, MLS shifts and the Rise of the Lifestyle Renter
Industry insiders warn of court‑case chaos, MLS consolidation and a growing cohort of renters (Click to Read More)
Real Estate News identified several forces that could reshape the industry in 2026. The Sitzer/Burnett and Gibson commission‑settlement appeals may lead to overturned agreements, throwing buyer‑agent compensation rules back into flux. Analysts also expect multiple listing services (MLSs) to grow more autonomous as the National Association of Realtors (NAR) focuses on advocacy rather than rulemaking, potentially accelerating consolidation and creating varied local policies. Consumer trends are shifting, too; Zillow’s survey found that only 37 % of renters would purchase a home even if rates drop, and nearly 60 % plan to keep renting in 2026. Policy action may be on the horizon as bipartisan momentum builds for housing‑affordability legislation, yet Redfin’s economists predict true “normalcy” in costs may not return until 2030.
What this means for Agents: Nashville practitioners should watch the appeals of the Sitzer/Burnett settlement closely. If the current buyer‑broker rules are overturned, compensation arrangements could shift again, requiring updated buyer‑agency agreements and new negotiation skills. MLS consolidation may lead to more regional cooperation; agents should stay informed about any rule changes in Middle Tennessee. With a growing share of households choosing to rent by choice rather than necessity, property managers and investor‑friendly agents could see more opportunity, while traditional buyer leads might require extra nurturing.
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About the Author
Sarah Bates is a Transaction Coordinator with a strong foundation in real property and transaction management. She holds a B.A. in English/Pre-Law from the University of Tennessee at Chattanooga and earned her Juris Doctorate from the Nashville School of Law, earning her the nickname of “a TC with a JD”.
She began her real estate journey as an Office Manager for a boutique brokerage, where she quickly applied her legal education and attention to detail to real estate transactions. In 2023, Sarah completed advanced professional training from the Transaction Coordinator Academy, solidifying her expertise in real estate transaction management.
Today, she serves as a Transaction Coordinator at SmoothTC with five years experience in the industry, specializing in managing transaction details, deadlines, and brokerage compliance for real estate agents. Her legal education, combined with hands-on experience, makes her a trusted resource for agents seeking smooth, accurate, and efficient closings.
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