Latest / Massive Agent Podcast / Are New NAR Rules About to Change Again?

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Are New NAR Rules About to Change Again? · Massive Agent Podcast

• 0:00
  SPEAKER_00: On this episode, I'm going to share with you why I think all the stuff that we started to get some clarity on is still pretty unclear.
• 0:07
  SPEAKER_00: All the NER settlements, the rule changes, it's still so up in the air.
• 0:12
  SPEAKER_00: And I'll explain what that means.
• 0:13
  SPEAKER_00: And I'll tell you what you should be doing about it, what you should be doing about it now.
• 0:18
  SPEAKER_00: And then, even once we have clarity on this stuff, it's the same shit.
• 0:23
  SPEAKER_01: The Massive Agent Podcast with lead generation tips and strategies to give you more leads and sell more homes.
• 0:30
  SPEAKER_00: I love to buy houses.
• 0:32
  SPEAKER_00: I like to sell houses.
• 0:33
  SPEAKER_01: It takes brass balls to do it.
• 0:36
  SPEAKER_01: Wait a minute.
• 0:37
  SPEAKER_01: Leads a week.
• 0:39
  SPEAKER_01: You're a week.
• 0:40
  SPEAKER_01: I've had better.
• 0:41
  SPEAKER_01: Oh, have I got your attention now?
• 0:44
  SPEAKER_01: Here's your host, Dustin Brome.
• 0:49
  SPEAKER_00: What is up, guys?
• 0:50
  SPEAKER_00: Welcome to episode 336 of the Massive Agent Podcast.
• 0:54
  SPEAKER_00: I'm your host, Dustin Brome, here in Salt Lake City, Utah.
• 0:57
  SPEAKER_00: And today I'm probably going to take a dump on your parade because just as you thought, you're starting to get some clarity and wrap your head around what the rules look like moving forward as far as commission and compensation and where it where it is and how you talk about it and how you bring it up with your clients, all that stuff.
• 1:15
  SPEAKER_00: Well, it's still so up in the air.
• 1:18
  SPEAKER_00: So I'm going to explain exactly how.
• 1:36
  SPEAKER_00: And it's the exact same stuff you should be doing a year from now and five years from now.
• 1:41
  SPEAKER_00: So I'll remind you what those things are before we get into it.
• 1:44
  SPEAKER_00: Keeping current matters needs to be in your tool belt.
• 1:47
  SPEAKER_00: I don't know why you're not using uh what did I almost call that something weird.
• 1:51
  SPEAKER_00: Uh KCM.
• 1:52
  SPEAKER_00: I was almost called it like CTR.
• 1:54
  SPEAKER_00: If you're in Utah, you know exactly what CTR means.
• 1:57
  SPEAKER_00: Um yeah, you Utah's know what I'm talking about.
• 2:00
  SPEAKER_00: Uh but keeping current matters, there's so much change happening.
• 2:05
  SPEAKER_00: And I it doesn't make sense why so many agents why you make it harder than it needs to be.
• 2:09
  SPEAKER_00: There's a group of experts, not just economic experts, but on policy and macroeconomics and all this stuff.
• 2:16
  SPEAKER_00: And you can literally just hire them, have them all in your back pocket.
• 2:20
  SPEAKER_00: They will spend all day, every day researching what's happening, what will happen, what it means to buyers, what it means to sellers, how they should be adjusting their behavior in accordance to it, and they'll just tell you what to do.
• 2:31
  SPEAKER_00: And for a few dollars a month, you can have KCM doing that for you.
• 2:34
  SPEAKER_00: So try it out.
• 2:35
  SPEAKER_00: And if if it's not all it's cracked up to be, which I'd be very surprised, uh, then don't use it.
• 2:42
  SPEAKER_00: But you have to, you owe it to yourself to try out keeping current matters because all the top producers out there already are, and you can try it yourself at trykcm.com slash bam.
• 2:52
  SPEAKER_00: And bam is where you're going, now bam.com is where you're gonna find BAMX, their community, online courses, um, the referral network they have, the events they have, bam in a box, all these incredible resources for real estate agents.
• 3:06
  SPEAKER_00: And you get that over at nowbam.com.
• 3:08
  SPEAKER_00: And when you join BAMX, make sure you use code MASSIVE because you'll get a discount off of the annual subscription.
• 3:15
  SPEAKER_00: So for um, it's like a cup of coffee a month or something like that.
• 3:20
  SPEAKER_00: It's like depending on where you get coffee.
• 3:22
  SPEAKER_00: Uh, very, very inexpensive to have BAMX in your corner and to be part of that incredible, thriving community.
• 3:29
  SPEAKER_00: Every agent that I've spoken to who's a member of it swears by it, says they would have paid a lot more.
• 3:34
  SPEAKER_00: Don't tell BAM that, but get yourself a discount, use code MASSIVE at checkout over at nowbam.com.
• 3:40
  SPEAKER_00: Let's talk about NAR, the settlement, the rule changes, all this good stuff.
• 3:46
  SPEAKER_00: So uh last week, sometime last week, a lawyer, an attorney, okay, an attorney for the Department of Justice, who by the way is still investigating and digging into this the National Association of Realtors.
• 4:00
  SPEAKER_00: Uh, that's not over.
• 4:01
  SPEAKER_00: There's I'm gonna shit on your parade for a second, right?
• 4:06
  SPEAKER_00: But I promise you at the end, I'll give you some clear-cut solutions and and marching orders.
• 4:12
  SPEAKER_00: Because I just want what I don't want you to do is get too complacent right now and think that you have everything figured out because uh the industry hasn't figured shit out.
• 4:21
  SPEAKER_00: We we just haven't heard any new news.
• 4:24
  SPEAKER_00: There has not been another shoe that's dropped yet.
• 4:26
  SPEAKER_00: There will be more shoes dropping.
• 4:28
  SPEAKER_00: You better cover your heads because more shoes will be dropping.
• 4:31
  SPEAKER_00: The Department of Justice, the United States freaking government is still investigating the National Association of Realtors.
• 4:40
  SPEAKER_00: And so an attorney last week came out and said, Oh, wait, wait, wait, wait, no, no, no, real estate industry.
• 4:46
  SPEAKER_00: Um, you thought that as you know, part of the settlement, which by the way, is the only thing part of the settlement, that you uh you can no longer offer offers of compensation uh through the MLS, right?
• 4:57
  SPEAKER_00: It has to be elsewhere.
• 4:58
  SPEAKER_00: Okay, that that is the settlement, that is what the rules are right now.
• 5:02
  SPEAKER_00: But an attorney for the Department of Justice said, no, no, you can't talk about or offer compensation anywhere.
• 5:10
  SPEAKER_00: Well, that's interesting, Department of Justice.
• 5:12
  SPEAKER_00: That's not part of the damn settlement.
• 5:14
  SPEAKER_00: So for now, you listen to your MLS, you listen to your board of realtors, you listen to your broker, because all we know right now is you cannot offer compensation through the MLS as of what is it, July something.
• 5:29
  SPEAKER_00: I believe it starts in July.
• 5:31
  SPEAKER_00: See, I can't even keep track on when when the shit is supposed to start.
• 5:34
  SPEAKER_00: Sometime in July.
• 5:36
  SPEAKER_00: Um I might even I might even be wrong on that.
• 5:39
  SPEAKER_00: It might be August, but sometime July or August, the rule changes go into effect, and your local MLS, your local board of realtors, may not even have the forms changed yet.
• 5:48
  SPEAKER_00: They may not even have everything figured out yet.
• 5:51
  SPEAKER_00: But they will.
• 5:52
  SPEAKER_00: Okay.
• 5:53
  SPEAKER_00: Um, but the department of justice says, wait just a minute, you can't offer compensation anywhere.
• 5:59
  SPEAKER_00: Yeah, good luck with that.
• 6:01
  SPEAKER_00: Um, I know that that's that for me, that's um I'm taking on Goliath here, but that's ridiculous.
• 6:08
  SPEAKER_00: So that just gives a glimpse into what the Department of Justice wants from us, right?
• 6:14
  SPEAKER_00: That it shows how how activist they have become in getting involved in real estate transactions and and and the way that we've done business.
• 6:23
  SPEAKER_00: They don't think that we should be that sellers should be able to offer compensation anywhere.
• 6:28
  SPEAKER_00: So for now, let's put a pin in that.
• 6:31
  SPEAKER_00: Okay.
• 6:32
  SPEAKER_00: That's why I say this is not over, right?
• 6:34
  SPEAKER_00: We're getting all this clarity, there's gonna be some rule changes, but it will change again because the Department of Justice has a hard-on for our industry and the way we do business, the way we get paid, how it's structured, and all that shit.
• 6:45
  SPEAKER_00: So, um, I mean, so that's nice, that's comforting, right?
• 6:50
  SPEAKER_00: Well, what will always happen is there will be you're not going to eliminate sellers saying, hey, if you bring us an agent, we'll pay your agent.
• 7:01
  SPEAKER_00: Like some sellers will choose to do that, some won't.
• 7:03
  SPEAKER_00: We're not going to eliminate that, right?
• 7:05
  SPEAKER_00: I don't see in what world, in what in which free country that is prohibited.
• 7:11
  SPEAKER_00: So there will just be some changes and some concessions made and some more iterations and this, that, and the other.
• 7:18
  SPEAKER_00: So stay on your toes.
• 7:19
  SPEAKER_00: But in the meantime, what you should be doing is the same thing that you should have been doing in the past.
• 7:25
  SPEAKER_00: You have to get good at selling yourself and your services and what you do and what you will do on behalf of the clients you want to hire you, whether that's a buyer, a seller, an investor, a renter, whoever.
• 7:37
  SPEAKER_00: You have to sell yourself.
• 7:40
  SPEAKER_00: So in states like Utah, where buyer broker agreements have always been the norm, right?
• 7:46
  SPEAKER_00: I've told you on previous episodes where we've where I've gone deep on this.
• 7:52
  SPEAKER_00: From day one, 13 plus years ago, 13 and a half years ago in real estate, I was taught to get the buyer to sign the buyer broker.
• 8:00
  SPEAKER_00: They agree to the commission up front, then we go look for houses.
• 8:03
  SPEAKER_00: And but that's just how I've always done it.
• 8:05
  SPEAKER_00: So to me, it's like, well, no shit.
• 8:07
  SPEAKER_00: I was actually surprised at how there were other states and other other areas where this was not common.
• 8:14
  SPEAKER_00: I'm like, so to me, that was that was the weird part.
• 8:17
  SPEAKER_00: Is wait, there's there's been agents who have not been doing this.
• 8:22
  SPEAKER_00: So no matter what, everyone's gonna have a level playing field now.
• 8:26
  SPEAKER_00: You must have the conversation with your buyers up front about what you charge for your services.
• 8:33
  SPEAKER_00: So if you're gonna do that, and especially if you weren't used to it before, you've got to get very good at saying, here's what I charge my services, and here's what you get for it.
• 8:44
  SPEAKER_00: Here's what you get for it.
• 8:46
  SPEAKER_00: So if you haven't done this yet, if you haven't started to practice, if you haven't even, if you haven't taken the time to outline what the hell you do offer, why they should hire you, all the little teeny things.
• 8:58
  SPEAKER_00: We've we've gone over this in the past, and I'm not gonna I'm not gonna get into every little detail today.
• 9:03
  SPEAKER_00: But you have to start to wrap your head around all the value that you provide.
• 9:07
  SPEAKER_00: Because if you don't understand the value you provide, how are you gonna sell someone else on the fact that you provide it?
• 9:15
  SPEAKER_00: The agents that are gonna thrive the most in this moving forward are gonna be those that get bet that really become the best at selling themselves, that get the best at the who become the best at packaging up the value that you offer and saying, hey, in in exchange for this fee or this amount in commission or you know, this compensation, you will get all of this in return.
• 9:41
  SPEAKER_00: We'll take this off your plate, I'll do this on your behalf, this, this, this.
• 9:44
  SPEAKER_00: These are the results you'll get.
• 9:45
  SPEAKER_00: You'll get this result, this result, this result.
• 9:48
  SPEAKER_00: When you get really good at that, you're gonna get a ton of business.
• 9:51
  SPEAKER_00: And the agents, most of you listening are already going to do this, or you're in the process of it.
• 9:55
  SPEAKER_00: But some of you are still stuck in fear mode, or you're like, well, I don't know, I'm gonna wait until everything's all figured out.
• 10:03
  SPEAKER_00: Why?
• 10:04
  SPEAKER_00: Right?
• 10:04
  SPEAKER_00: Shit's just gonna keep changing, but you're you're always gonna have to be really good and competent and effective at packaging up what you do, what you offer, what you provide, and selling that.
• 10:20
  SPEAKER_00: I offer this for this amount, I offer this for this amount.
• 10:24
  SPEAKER_00: That's business.
• 10:26
  SPEAKER_00: And and as soon as you can wrap your head around the fact that that's what you do, that's what we do for a living as service providers, as advisors, as I guess salespeople, if you want to call it that.
• 10:38
  SPEAKER_00: I don't really think we're salespeople because we're not like trying to, you know, what do I need to do to put you in a nice new townhouse today?
• 10:44
  SPEAKER_00: Like that's not what we do, right?
• 10:46
  SPEAKER_00: We we guide and we educate and and we're we're freaking Sherpas, is what we are.
• 10:51
  SPEAKER_00: Sherpas.
• 10:53
  SPEAKER_00: Yeah.
• 10:53
  SPEAKER_00: Yeah.
• 10:54
  SPEAKER_00: No, we're not.
• 10:55
  SPEAKER_00: No, no, we're not.
• 10:57
  SPEAKER_00: But we could be.
• 11:00
  SPEAKER_00: So when you get good, or if you get better than you are today at articulating what it is that you do for a living, what it is you'll do for your clients, what what you'll do for your sellers, what, and not just what you'll do, not just naming off a bunch of things, because they may see those things and be like, okay, why do I need those?
• 11:21
  SPEAKER_00: You have to tie it to a damn result.
• 11:23
  SPEAKER_00: Okay, you're going to get them certain results because of the things you do.
• 11:27
  SPEAKER_00: We're going to do this on your behalf in order to get this result.
• 11:30
  SPEAKER_00: We're going to get you this result by doing A, B, and C, right?
• 11:34
  SPEAKER_00: You get the you as long as you're effective, you're going to be just fine.
• 11:38
  SPEAKER_00: So practice.
• 11:39
  SPEAKER_00: And if you don't know how to do that, listen to other great top producers that are putting out content on a regular basis, explaining or showing or demonstrating how they do it.
• 11:49
  SPEAKER_00: But if you just sit back and think you're going to do the same shit that you were doing three years ago, it's not going to work out so well.
• 11:57
  SPEAKER_00: So moving forward, no matter what changes in the future, rules change and this, that, and like where you can talk about compensation, that's still going to change.
• 12:07
  SPEAKER_00: But the need for you to get really freaking good and dialed with packaging and selling what you do for a living and the results that you get for your buyers and sellers and renters and investors, the better you become at that, the more you're going to thrive in the future.
• 12:25
  SPEAKER_00: It just gets more important every day.
• 12:27
  SPEAKER_00: The more this industry changes, the more important that skill set becomes.
• 12:30
  SPEAKER_00: So the question I have to you is are you working on it?
• 12:34
  SPEAKER_00: Are you improving every day or in every week?
• 12:36
  SPEAKER_00: Are you making a concerted effort?
• 12:38
  SPEAKER_00: Are you listening to podcasts to educate yourself?
• 12:40
  SPEAKER_00: Are you practicing?
• 12:41
  SPEAKER_00: Are you talking to yourself in the mirror?
• 12:43
  SPEAKER_00: Are you role-playing?
• 12:45
  SPEAKER_00: Are you um are you reading scripts?
• 12:47
  SPEAKER_00: Are you creating scripts?
• 12:48
  SPEAKER_00: Are you outlining what it is you do?
• 12:50
  SPEAKER_00: Are you are you brain dumping every single little thing you do for a seller, everything you do for a buyer, and so on?
• 12:57
  SPEAKER_00: Because I don't know if you saw this.
• 12:58
  SPEAKER_00: Realtor.com, they put out an ad in the Wall Street Journal where they laid out like a hundred plus things.
• 13:04
  SPEAKER_00: It's actually a brilliant ad, right?
• 13:06
  SPEAKER_00: Go look this up.
• 13:07
  SPEAKER_00: Uh, Realtor.com said if you're buying a house, you have two options.
• 13:12
  SPEAKER_00: You could do these, I forget, like 116, maybe 185 things, and it outlines boom, boom, boom, boom, boom, all these things.
• 13:20
  SPEAKER_00: It's like this giant visual of all these things that they have to do.
• 13:23
  SPEAKER_00: Or option B, hire a great agent.
• 13:27
  SPEAKER_00: It was so effective because you could visually see, holy shit, there's all these things that if I don't hire an agent, I've got to do those things.
• 13:35
  SPEAKER_00: People have options, they always have.
• 13:38
  SPEAKER_00: No shit, they always have.
• 13:41
  SPEAKER_00: Well, why don't you take a page out of realtor.com's playbook and create your own list or go look at theirs and then add to it.
• 13:49
  SPEAKER_00: Because I'm sure that there was some stuff that was left out.
• 13:53
  SPEAKER_00: So as big as their their list was, I'm sure it was still incomplete.
• 13:58
  SPEAKER_00: It was it was quite large, but there's I'm I guarantee there's something that you do that was not on that list.
• 14:05
  SPEAKER_00: And you've got to get good at packaging it up and making clear to the buyers and sellers and the people you want to hire you that they know what you're gonna do and why it's important, why they want it, what it's gonna do for them, what it's gonna take off their plate.
• 14:19
  SPEAKER_00: So get dialed on those things.
• 14:22
  SPEAKER_00: Get really good at communication and packaging and sales and marketing and work on your confidence.
• 14:28
  SPEAKER_00: Because just knowing, just having all those things packaged up and not having the confidence to say, hey, yes, here's what I charge, and here's what you're gonna get for it.
• 14:37
  SPEAKER_00: And damn it, this is a good deal.
• 14:38
  SPEAKER_00: If you don't have that swagger, if you don't have that confidence, no one's gonna hire you because they're just not gonna feel it.
• 14:45
  SPEAKER_00: So you have to practice.
• 14:47
  SPEAKER_00: Those that are willing to practice, those that are willing to put into work and suck for a little bit in order to get better, are going to thrive.
• 14:55
  SPEAKER_00: And I'm excited for those of you who do.
• 14:57
  SPEAKER_00: Stay on your toes because all of this stuff is probably still changing.
• 15:01
  SPEAKER_00: The Department of Justice is still sniffing their fat nose around.
• 15:06
  SPEAKER_00: Uh real estate transactions, they there's gonna be more changes.
• 15:11
  SPEAKER_00: But all the solutions I just provided, all the skill sets you need to have, that's gonna be required even more so in the future.
• 15:18
  SPEAKER_00: So get on it.
• 15:19
  SPEAKER_00: Hope you guys have a great rest of your week.
• 15:21
  SPEAKER_00: Take care.