The NAR Settlement Presents a Massive Opportunity
The moves you make right now will have a long-lasting impact.
The recent settlement proposed in the NAR lawsuit has shaken our industry and forced a lot of agents to reexamine the way they work with buyers.
There’s a lot of fear out there right now: fear in the news, fear of uncertainty, fear that what has been working for some agents all this time is completely irrelevant.
I understand you, but this has been something that I’ve been anticipating and preparing for over a long time, and let me tell you…. Not everyone needs to be worried.
The only agents who need to be scared right now are the ones who refuse to adapt to the times. This is like the invention of social media, the evolution of AI, or any other major event that forces you to adapt your strategies.
And that’s a good thing! It’s an opportunity for you to get ahead!
The NAR Settlement – Keep This in Mind
In this blog, I’m going to break down a few short dos and don’ts for you to keep in mind as you adjust your strategies to the NAR lawsuit settlement guidelines.
But it’s important to note that at the time I’m writing this blog, nothing is set in stone yet.
All of these proposed changes are very likely to go into effect but nothing is guaranteed. Just know what if anything does change, we’ll be sure to update this so that you’re only getting correct information.
That said, the settlement proposed is precisely what I’ve been anticipating for a while, so we’re more than prepared for this.
Now, before we dive into what you need to do, let’s have a quick recap so that everyone has context.
What is the Case of Burnett vs. NAR?
Sitzer-Burnett vs. NAR is a federal class action case in which Missouri home buyers claimed that the National Association of Realtors conspired to inflate commissions. They were found liable and offered a settlement which will enforce new rules surrounding buyer’s agent compensation.
Let’s make something very clear… This does not mean that buyer commission is disappearing or decreasing or any of that. It simply means that instead of having one commission which is split amongst the listing agent and the buyer’s agent, there are now two separate figure which are negotiated independently.
Working with Buyers: What’s Changed?
1. Buyers Are More Like Listings Now
Starting in June, the MLS will no longer feature buyer compensation.
Working with buyers will now become more like working with listings. You need to demonstrate your value in order to get the business.
This means your buyer consultation needs to be every bit as refined and persuasive as your listing presentation. You can’t just take the business – you need to earn it.
Does this seem shocking and awful to you? I sure hope it doesn’t, because this has always been the best route to take with any client! Recognize their value and demonstrate your own.
2. Agreement Now Required
Getting a signed agreement has always been a good idea. Now it’s the law.
Before you show even just one home, you must have a signed agreement that explains how you get paid.
Think of this as an opportunity. It actually plays in your favor.
3. Negotiating Your Fee
Here’s the “big scary.” When you work with buyers, you’re now negotiating your fee every time. Buyside compensation will no longer be featured on the MLS.
This is just like it is in commercial real estate.
My two cents – Don’t ask for things to get easier. YOU need to get better.
The Most Important Things for You to Do NOW
1. Get updated contracts immediately! Don’t wait until summer to get started with this!
2. Review your local and state laws and protocols. This isn’t just about protecting yourself. If you want to be effective, you need to be confident, and nothing will destroy your confidence like not being certain of the realm you’re playing in.
3. Make sure you’re able to mention buyer compensation on your website if you want to (or any site for that matter).
You need to understand what your local laws consider to be a part of the “MLS.” Facebook groups or anywhere public are considered to be an MLS and are therefor a no-go. To market your listings as effectively as possible, you need to know where to put your focus.
4. Remember that there are still buyers out there right now, and there will be even more in the spring and summer markets.
These buyers NEED YOUR HELP. It’s your duty to step up your game and be there to serve as many of them as possible.
3 Things NOT to Do
1. Get Caught Up in the Media
Fixating on the headlines will not help you! You can’t control that narrative and I always say that you need to focus on the things you can control.
So what narrative can you control?
How about your sphere of influence? Call them instead of fixating on what the news says.
2. Don’t Try to Get Clever
Finding ways to side-step the rules or cut corners is an awesome strategy for losing your license and destroying your reputation. Don’t do it.
Instead, focus on dialing in your scripts.
3. Don’t Give in to Doom and Gloom
Why would you be down in the dumps when there is so much opportunity here?!
Think about it, the agents who adapt the fastest and raise their skills to meet the needs of the market will be the ones who dominate. That means there could be big power shifts coming to your area that you can take advantage of.
Choose Your Path
Right now you have three options for when to begin putting these changes in place. You MUST choose one of them.
- Bite the bullet and start now. Realize it’s all about mindset and scripting adjustment when with buyers and sellers.
- Wait till the last minute and panic. Then start.
- Wait until after July and look like a fool (or get in big trouble).
But please understand that “starting now” doesn’t mean rushing in blind and praying that everything turns out correct. You have resources available to help you and guides who can shine a light through the darkness ahead. The NAR lawsuit settlement isn’t the end of the world!
That’s what we’re here for and it’s the reason that our coaching members are actually EXCITED about what’s to come. Because the competition is about to start struggling right as the summer market is spicing up, and those who know the way will seize the day.
If you chose Option 1 from the above, then I challenge you to schedule a free call with one of our experts today to learn all the ways in which coaching can help you navigate this time.