Breaking: NAR Settlements Revealed

There's been a lot of confusion due to misinformation.

In this newsletter, we break down the facts...

...and exactly how it's going to affect your business. ????

To summarize:

After months of uncertainty, the NAR has agreed to a $418 million settlement agreement.

Subject to court approval, it will completely resolve the nationwide lawsuits brought by home sellers.

Here's how it's going to affect realtors:

First of all, commissions will remain entirely negotiable. They always have been.

More importantly, two big changes are coming:

1. New rule prohibiting offers of compensation on the MLS.

Meaning: all commissions must be negotiated off-MLS between client and realtor.

??2. Buyer agency agreements required before showing homes.

Meaning: working agreement (including commission rates) must be signed by both parties before showing any property.

How does this change things?

For us?

It means proving our worth more than ever. Especially to buyers.

But here's the kicker:

It’s not going to affect most top-producing agents.

Why?

Because money and people always gravitate towards value.

Understanding your value proposition and being able to articulate it to your clients will guarantee you success… and nothing has changed about that.

This settlement simply pushes us to justify our commissions.

And get extremely clear on how we help our clients achieve their goals.

Here’s why the lawsuits were filed in the first place:

Most agents weren’t communicating these things! ??

As a buyers agent you must understand:

The buyer's journey is a 3 step process...

...and so many realtors were skipping the first and most important step:

the buyer consultation.

This is where you set expectations for the relationship, lay the groundwork, and educate your clients.

Thoroughly outlining market dynamics, the buying process, the 5 negotiating points of the contract etc...

**This is where you communicate your value.**

**This is how you get paid.**

And it's all done before you show any houses.

Skipping this is like having your clients dive in the ocean without knowing how to swim.

It's a huge mistake so many realtors were making…

And it's a huge disservice to your clients.

In essence, homeowners sued the NAR because commission structures, weren’t being accurately communicated.

Bottom line:

This settlement simply makes the buyer consultation mandatory.

So, don't sweat the lawsuits.

But... do get very clear on what makes you valuable.

This is important...

Nurturing your Sphere of Influence (SOI) will make you bulletproof to these changes.

Because regular contact with your entire network—past clients, friends, family, acquaintances—builds reputation.?

It builds trust.

It promotes your expertise.

"Delivering value and showcasing your expertise to potential clients is crucial now more than ever... and it must be done consistently"

If you want to be successful in todays market...

...implement communication systems to personally connect with every single person you know on a consistent basis... weekly, by-weekly, monthly.

Remind them you're a go-to real estate resource, who's ready, willing, and able to help them with anything they need...

regardless of if it results in an immediate transaction.

Not only will it ease your buyer consultations... your success fee will be justified through the demonstration of your expertise.

But clients will come to you, already recognizing the value you have to offer.

You'll become top of mind as a go to realtor.

You'll grow your business organically

Get more clients

Boost referrals

and?

Increase repeat business.

In short, to adapt to these changes, consistently communicate with your audience, and you'll not just survive; you'll thrive in 2024.

Unaffected by the lawsuits.

Cheers to growing stronger and adapting through change!

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