NAR Lawsuit

The speaker discusses the impact of a recent settlement in the real estate industry. They emphasize the need for real estate agents to be prepared and navigate the changes that will affect their business. The settlement aims to bring transparency to commissions and requires agents to clearly communicate their charges and the amount they advise sellers to pay buyer's agents. As a result, buyer's agents will need to work harder to earn their commission and demonstrate their value. The speaker also mentions the need for buyer agency agreements, negotiations on payment, and the challenge of purchasing leads due to new regulations. Welcome back. Today I'm going to talk about a big topic that is going to be affecting and is already beginning to affect our entire real estate industry. This will affect buyers, sellers, existing homeowners, but most importantly it's going to affect us as real estate agents. When this topic very first came out, there was a lot of discussion and a lot of people weren't really concerned. We all kind of thought that we were going to navigate through it and things would be totally fine. As we get closer and closer to these implementation dates, I think we as an industry are starting to see changes everywhere. These changes are going to affect not only how we do business, but each one of us as agents, and it's imperative that we're prepared. Does that sound okay? Let's talk about what you can do to prepare for this. Like I said, this is a big deal, and today I'm going to talk about what you can do as an agent to prepare for it and how you can prepare your business. You can talk about, and coaching will help you prepare for this. Yes, I say it's a big deal, I'll talk about what you can do as an agent to prepare for this. New terrain, prepare for this new terrain. I'll help you through knowledge, practice, and script training, so education, okay. Like I said, this is a rather big deal, and the more I have educated myself on it, the more I am going to see the effects of this on our business. In coaching, I will help you navigate this new terrain. I'm going to try that again. Like I said, this is going to become a bigger deal in these coming months as we're navigating this. Through coaching, I'm going to help you navigate and understand how to do your business in this new time. I don't like that. I'm going to try it one more time. I'm going to try it one more time. Let me write again. Support, education, and opportunity. Like I said, this is going to be a big deal, and it will affect your business. Through coaching, I'm going to help you through support, education, and script training on how to be able to navigate this new terrain. I'm going to try it one more time. Let me write again. Support, education, and opportunity. Like I said, this is going to be a big deal, and it will affect your business. Through coaching, I'm going to help you through support, education, and script training on how to be able to navigate this new terrain. I'm going to try it one more time. Like I said, this is going to be a big deal, and it will affect your business. Through coaching, I'm going to help you through support, education, and script training on how to be able to navigate this new terrain. First thing I'm going to talk about is what NAR is and what this settlement was about. You want me to talk about the NAR settlement? So today, I'm going to be talking about the NAR settlement. Okay. So first, I want to make sure that I clarify some terms for those of you that might not understand or know fully what has happened. The NAR settlement that just recently has happened and is going to be implemented here in the next couple weeks, it's imperative that we kind of have an understanding of why it came about and what caused it and what is being put into place to help resolve it. At the very beginning ‑‑ I don't want to start there. Okay. There we go. Yep. Okay. First off, I want to help you understand what NAR is and what they do for all of us realtors. NAR is the National Association of Realtors. As a realtor, I belong to NAR and I pay a membership fee. In exchange for that, they help provide extra education opportunities. They help provide guidance on our ethics and they support us in advocating for us. It's imperative that we see that NAR and this settlement came about in a way to make sure that they're bringing transparency to the real estate industry. Many agents choose to belong to NAR and there's different levels. It's NAR, CAR, and then there's a local branch that most agents all belong to. CAR, for myself, is the Colorado Association of Realtors and there are associations throughout the country that we all collectively belong together. Some agents choose not to belong to an association and those are associate brokers and they are given the opportunity and the choice, depending on your brokerage, whether you would like to belong to an association or not. The NAR settlement situation came about because there was not transparencies in commissions. I am not an attorney and I am not giving any legal advice nor am I advising anyone, but it is imperative for us to be very transparent about commissions and about where sellers' commissions are going to be paid. Why is this going to affect you as a buyer's agent or as a real estate agent? It's going to be something that we're going to have to navigate all together. I'm going to talk about what the actual settlement was. I'm going to talk about transparency. Over the past few decades, there's been a couple of lawsuits that have claimed that there wasn't as much transparency in how much seller's agents were supposed to be... Charging where it was going, yeah. The settlement serves as a way for there to be more transparency about commissions and how much seller's agents are allowed to... It's not how much they're allowed, it's just that they have to... Be transparent about where the money goes. Well, what does that... Show us a few minutes or just... I have to be very clear about where that money is going. I can't say figures, right? But I have to be very clear. I am going to be paid X percent. It's signed in our contract. You just fixed my bank. The settlement serves as a way to decrease... The seller's agent and I now, we're going to be doing more work to make it clear how much I'm charging. Which is funny because it was in our contracts to begin with, but nobody was actually specifying what it was. It's because the attorneys found a way to sue people, if I'm being honest. That's what it is. Okay, so I'm going to go into what more of the transparency is. Again, the settlement serves as a way to increase transparency between seller's agents and their clients. If you're required to... Give me the launching word. Again... Okay. Again, this settlement, it serves as a way to increase transparency. Which means that now, as a listing agent, it is going to be imperative that you are communicating very clearly with your sellers as to what your charges are and what potential amount you would be advising them to be paying the buyer's agent. What this is going to mean for you as a buyer's agent is you are going to have to work harder than ever to earn your commission. Why, you ask? You are now no longer just earning the money for your buyers and explaining to them what your value is. Now, you are having to show your value to the seller because it is 100% negotiable for the seller to dictate how much you're going to be compensated. Then, do you want me to just go into... Oh. Okay. Jimmy, I don't know how to get rid of that X. It's still recording. Hello. Yeah. Okay. Just a little bit of detail on how it's going to affect them. Okay. Say something like, these are the three main ways it's going to affect one, two, three. What would you say in a bullet point list of how it's going to affect you? This will affect you in three different ways. The first is you're going to have to have a buyer agency agreement signed with every single buyer that you take into a home. This will have to be done before you show your clients' homes. Many of my clients, and myself included, have shown homes without a signed buyer's agency. You are no longer allowed to do that per this new settlement that has gone into place. The second way this is going to affect you is it is now negotiable how much money you will be paid. You will have to have in your buyer's agency agreement a specified amount that the buyers will be responsible for paying for you. The biggest concern and the biggest hurdle we're going to have to overcome is helping our buyers to understand our value and why they are now going to have to be responsible for this payment. We can still ask for that to be paid through the seller's contract, or we can ask for that to be paid by the listing brokerage. However, the majority of the responsibility is going to fall onto our buyers to make sure that we are compensated and we are paid. The third and final way this is going to affect you is it is going to be imperative that you understand your value, your worth, and that you are willing to fight and show how hard you are willing to work for your money. No longer will you just be a door opener. You are going to have to show everybody throughout the transaction why you are worth and valued enough to be paid what they're paying you. I didn't like how that came out. I kind of did, but whatever. Then we can tie into why you think you're just going to be able to buy your leads now. Yeah, and say the fourth and final way this is going to affect you is you may think that you can transition your business into a higher lease. Yeah. I got this. I got this part. Because I said at the beginning three ways, so actually I'm going to tie it differently. Yeah. Those are the three ways that this settlement is going to affect you. Now, it may be very easy for you to think, oh, well, this is just going to change this aspect of my business, so I'll just transition into purchasing my leads. Or if you have traditionally purchased your leads in the past and that is how you converted your buyers, there's actually another situation kind of brewing that has been implemented and it's been put in place by the FCC. The FCC has now made it more difficult and far more expensive for you to purchase leads. This is going to change your business if you are a lead purchaser or if you think with all of these changes you can navigate and pivot your business into purchasing leads. Then there you'll have the buyers. I'll run through the four changes that the FCC has put through and then we'll kind of just chat about how that's going to affect your business. The FCC has now ruled that the do not call list will now extend to text messages. Texting people that you get their lead information, if they're on the do not call list, you're no longer allowed to do that. The second way that the FCC has made some changes will affect how people are able to get the lead information and what they're able to do with that. The second way that this occurs is that it's, Jim, something's chirping. I think it's the camera just turned off. I just heard something from that one. At least I know I can just start right there. Yeah. Hello. Yep. At least I can just come back to it. 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