NAR Settlement Agreement Game Plan for Realtors

NAR Settlement Agreement Game Plan for Realtors

In the ever-evolving world of real estate, staying ahead of market trends and regulatory changes is paramount for success. The NAR Settlement has recently implemented new MLS rules that significantly affect how real estate professionals operate, particularly regarding agent compensation. Our goal is to help you navigate through these changes, ensuring your business not only adapts but thrives. Read about our NAR settlement agreement game plan for realtors.

VIDEO: NAR Settlement Agreement Game Plan for Realtors

Adapting Your Business Strategy

In light of these changes, adapting your business strategy is not just recommended; it’s necessary. The prohibition on MLS for stating co-broker compensation doesn’t limit us from promoting it through other channels. Your website, social media platforms, and marketing materials can serve as powerful tools to communicate how you work, the value you provide, and how you’re compensated for your services. This approach not only adheres to the new rules but also enhances your credibility and professionalism in the eyes of your clients.

Engaging in buyer consultations has become more critical than ever. These consultations offer a prime opportunity to explain the intricacies of the buying process, including how agents are compensated. By setting clear expectations from the beginning in an organized sales process, you mitigate misunderstandings and build trust with your clients. Accordingly, it’s a chance to underscore your value and commitment to their success, differentiating yourself in a competitive market.

?"By setting clear expectations from the beginning in an organized sales process, you mitigate misunderstandings and build trust with your clients."

-Brian Icenhower

NAR Settlement Agreement Game Plan: Scripts to Use with Clients

Inevitably, your clients have and will continue to come to you looking for answers. To calm their nerves and be the voice of reason, it’s critical at this time to be prepared with what to say and how to say it. Here are a few topics to consider:

1. The Concept of Decoupling – The seller is responsible for paying the seller’s agent and the buyer is technically responsible for paying the buyer’s agent. It’s the same amount, just decoupled where the person is paying directly the person that they are paying. Hence, the amount hasn’t changed, it’s just been separated.
2. ?LIST – When you have your initial meeting with a potential client: “Lead In” with small talk. “Investigate” what type of property your client is looking for or why they are selling. “Show and Share” the value you bring to the table and why it’s crucial to have a knowledgeable agent on their side. “Tie Down” their commitment by asking, “Would you like to hire me?” This is when you bring out the buyer or listing agreement.?
3. ?Will Home Prices Drop? – We’ve heard that some clients are presuming that home prices will drop due to lower commission payouts. That’s not going to happen because prices are determined by supply and demand, not agent commissions.?

These are just three examples of scripts that you should be using with clients today. Watch the above video to hear more examples from Brian and Rick. Also, our team of coaches is working diligently to bring you more scripts to share with your clients. Stay tuned as we share more of our NAR settlement agreement game plan with you in the upcoming weeks.

Conclusion: The Why Hasn’t Changed, Just the How

The bottom line is the “what” hasn’t changed. You’re still going to have buyer representation. Nine out of 10 buyers were represented by a real estate professional over the last 10 years. There’s still going to be a commission paid and the NAR settlement did not decide compensation.

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So what did change? The how.? A listing agent is going to define what a buyer’s agent is going to? be paid at the time of listing. The new MLS rules represent a shift in how we approach our business and client interactions.

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While change can be daunting, it also presents an opportunity for growth, innovation, and enhanced client relationships. By understanding these changes, adapting our strategies, and communicating openly with our clients, we position ourselves for continued success in the dynamic landscape of real estate.

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