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CONFUSED by Regulations? Simplified Real Estate Agent Training on Compliance · The Real Estate Agent Playbook

• 0:00
  What's up real estate agents?
• 0:01
  As we kind of slow down and hit these winter months, a lot of agents
• 0:05
  start to take some of their CE classes, any annual commission updates
• 0:10
  that you might want to tap into.
• 0:12
  There is an underlying fear in some of these classes that's always basically
• 0:18
  like, everyone's trying to sue me, how not to get sued, how to stay out of trouble.
• 0:22
  Today I'm going to unpack that as a top producing experienced agent and how I
• 0:26
  was able to get past that and work in an environment where I was both in compliance
• 0:32
  but crushing real estate at the same time.
• 0:34
  So stay tuned.
• 0:39
  What's up guys, Jeremy Kane, real estate agent.
• 0:41
  playbook today.
• 0:42
  I'm going to unpack this and I've had this feeling when I'm sitting in a class
• 0:46
  of, Oh, well, if there's no right answer and the ethics are against the commission
• 0:50
  and all of this stuff, what am I to do?
• 0:53
  And I'm going to unpack that a little bit for you.
• 0:54
  And as you know, I've been in the business for 10 years.
• 0:58
  So if you have any questions on this or you get this feeling and maybe
• 1:01
  need some tips on how to get over it, please reach out, but let's dive in.
• 1:05
  If you like what you hear at any point, throw me a thumbs up, and
• 1:09
  understand that I produce content not only on this stuff and kind of
• 1:13
  the, the feelings that we go through, but also training, marketing ideas.
• 1:17
  I bring other agents on here, so smash that subscribe button.
• 1:20
  Let's get into this.
• 1:21
  So, unless you've been hiding under a rock, and you haven't been paying
• 1:24
  attention, the big news is this.
• 1:28
  Realtor.
• 1:29
  Lawsuit, that NARS going up against and some of the bigger brokerages
• 1:34
  are named in this lawsuit that has to do with buyer's agent commission
• 1:38
  and who's going to pay them.
• 1:39
  A lot of this boils down to compliance and how we've been treating.
• 1:44
  Our customers and how we've been treating those listing appointments.
• 1:47
  So, first and foremost, I want you to know that no matter whatever, what happens with
• 1:52
  this lawsuit, if all of a sudden sellers can't pay and they're not allowed and then
• 1:56
  we haven't even touched that, you know, the VA loan guidelines say that the buyer
• 2:00
  can't pay a real estate agent commission.
• 2:02
  So, we'll get to that when we get there.
• 2:05
  However, understand that it's going to be okay.
• 2:08
  There's been changes made in the real estate industry, maybe not so much focused
• 2:13
  on our pay and what we, you know, earn for, you know, representing certain
• 2:17
  sides, but this is going to be okay.
• 2:20
  What I am urging agents that I talk to and agents that are in my downline is
• 2:24
  You have to provide value have to be able to, you know, if someone's paying you to
• 2:28
  negotiate on their behalf, you have to be able to negotiate on your own behalf
• 2:32
  because you're your number one fan, right?
• 2:34
  So work on the negotiation, work on those skills, but also
• 2:38
  start stacking value, right?
• 2:40
  Start You know memorializing your value not just doing it and you know
• 2:45
  going through the motions and getting it done and At the end of the day the
• 2:48
  client's like yes But start stacking that value and then all of a sudden
• 2:52
  if it does change and the real estate commissions buyer Commissions are
• 2:55
  turned upside down due to this lawsuit.
• 2:58
  You will have that value there, but then let's go back
• 3:02
  It's about compliance, right?
• 3:03
  So how are we gonna?
• 3:06
  Make sure you're compliant.
• 3:07
  Make sure you're having these discussions.
• 3:09
  The biggest thing that agents don't do is understand the contracts they're
• 3:14
  putting in front of their clients.
• 3:16
  So, make sure that you're getting the education.
• 3:19
  Know what these, you know, you're utilizing your managing broker
• 3:22
  and your resources to understand what Does this contract that I'm
• 3:26
  putting in front of my client say, and always go through it, right?
• 3:29
  You don't have to go through it line by line.
• 3:31
  I typically go with, here's the contract.
• 3:34
  We're going to go through, you know, whether it's an exclusive right to buy a
• 3:37
  contract by ourselves, exclusive right to list, they're all called different things
• 3:40
  in different states, but here it is.
• 3:42
  I'm going to give you time to read it and digest it, right?
• 3:46
  It's important to.
• 3:47
  Have our clients read through these documents that they're signing and then
• 3:51
  we are there to answer questions But I also kind of lead that conversation
• 3:55
  and going through the major bullet points right doing this ten years
• 3:59
  I know that people are gonna ask me about certain sections of the contract.
• 4:02
  So I'm gonna go through those Ahead of time and then I'm gonna say were there
• 4:07
  anything that I didn't cover that you had a question about Right and understand that
• 4:11
  when the time comes for the Commission in the Colorado exclusive right to list
• 4:16
  There's always been buyers obligated to pay Commission seller or listing agent may
• 4:21
  pay That's a box we check and that allows us to negotiate that Commission within the
• 4:25
  contracts by and sell so If that's the way your managing broker teaches you, great.
• 4:30
  I'm not here to tell you how to do it, but we need to have that conversation
• 4:34
  around commission and understand, okay, this is how it is, right?
• 4:39
  Whatever you're saying, you need to say, this is what, you know, is on the MLS.
• 4:44
  This is what is offered.
• 4:45
  If it's 0, obviously I can't work for free.
• 4:49
  So it needs to be a negotiation tactic.
• 4:52
  We need to use it within our negotiations with the listing agent or.
• 4:56
  You may have to pay.
• 4:57
  Do you have the ability to pay X amount of, you know, whatever you're charging,
• 5:02
  whatever they're willing to pay.
• 5:03
  And you have that conversation, you have it early, you have it up front.
• 5:07
  It's not doing a ton of work knowing you're not going to get paid.
• 5:11
  Now in our market, that's been in our.
• 5:13
  Exclusive right to buy for a long time, right?
• 5:17
  So probably I mean as long as I can remember probably at least eight years
• 5:21
  but when you're having that conversation you need to be upfront honest and go from
• 5:26
  there and then You know, here's the value and have some things to supplement in
• 5:30
  there so that you're showing what you do Right have the conversation right then
• 5:35
  of what you do What your commission split looks like with your brokerage, what, you
• 5:39
  know, you, your tax burden, what the costs of being a real estate agent are, because
• 5:44
  obviously they just see, oh, you're walking away from the table with 10 to
• 5:47
  15 grand for, you know, 45 days of work.
• 5:50
  That seems like a really good deal.
• 5:51
  Well.
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  You know, once they actually understand, Oh, well that's before taxes, before
• 5:57
  insurance, before all the things, before all the fees that it takes
• 6:00
  to be the professional that it is, then you can have that conversation.
• 6:03
  Maybe it's a one sheet, depending on your personality, create something that allows
• 6:08
  you to either have the conversations or demonstrate, you know, what goes on.
• 6:13
  And so when you have this tough conversation, when you come up against
• 6:16
  a listing that's offering 1 or 0 or whatever, they're arguing about in
• 6:20
  court, You can have that conversation ahead of time and make sure that your
• 6:24
  client understands what this will look like based on that previous agreement.
• 6:28
  So obviously things may change.
• 6:31
  It is what it is.
• 6:32
  Just giving you some ideas, but it all comes down to what you can do right now.
• 6:36
  to be ahead of it and not be reactive when it comes and be like, Oh man,
• 6:40
  I didn't think this was ever going to change and you're ahead of it.
• 6:43
  So that's a big one with compliance.
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  Make sure that you're being compliant.
• 6:47
  Make sure you're going to these updates.
• 6:49
  Make sure you're reading the newsletters from your local real estate
• 6:52
  boards and the national real estate boards to understand how they are
• 6:55
  telling us to handle this situation.
• 6:58
  Moving forward and make sure you're doing it right because some things may change
• 7:01
  and there may be some required disclosures or Conversations that you need to have
• 7:06
  that you need to know about so first and foremost to stay compliant pay attention
• 7:10
  to what's happening Right pay attention To those emails that maybe they're boring.
• 7:15
  Maybe they say the same stuff But one time they might say something different
• 7:18
  You need to make sure you understand the commission's point the realtor
• 7:21
  board point if you're a realtor And go from there and that leads me right into
• 7:25
  the next point is continuing education when the Transactions slow down and
• 7:30
  you have time take advantage of all of these continuing education opportunities
• 7:35
  Whether you're getting credits to you know, maintain your license and they're
• 7:39
  required or they're just classes that you're interested in huge Advantage to
• 7:44
  those who are developing a niche, right?
• 7:46
  We're all into this niche marketing.
• 7:47
  We're all going to do the thing Well, there's probably a course at some
• 7:51
  point in your, you know, real estate journey that you can take that'll
• 7:55
  help advance that niche, right?
• 7:57
  Obviously divorce and estates and all of those have more legalistic
• 8:02
  kind of things around them.
• 8:05
  So there's that, but you can probably, you know, if you're into the horse
• 8:09
  industry, maybe, you know, you're in the mountain properties, you need to be
• 8:12
  You know, going to courses on, you know, probably well in septic and, you know,
• 8:18
  surveys and what that looks like in the mountains, selling mountain properties,
• 8:22
  all of those things, you can kind of really dive in and take that education
• 8:26
  and yeah, they may seem boring on the surface cause we love the marketing.
• 8:29
  We love the sexy over here.
• 8:31
  But, the bones of what you're going to know and to be an actual resource, you
• 8:35
  need to make sure you're taking advantage of those continuing education classes.
• 8:39
  And you must know your contracts, right?
• 8:40
  Every year, Colorado puts out a red line contract.
• 8:43
  They change the contract, they change one or two words, they change one
• 8:46
  or two paragraphs, sometimes they change one or two pages, right?
• 8:50
  You need to understand what is change, and you need to understand it before
• 8:53
  it takes place, which typically those classes start coming out right now.
• 8:57
  Actually I have an agent who teaches those classes, so if you are interested
• 9:01
  and you're in Colorado, definitely comment below and I'd be happy
• 9:05
  to connect you with her classes.
• 9:06
  She does a great job, so that you're ready for the new year.
• 9:09
  And if you're not in Colorado, find somebody that's teaching
• 9:12
  these classes or find somebody.
• 9:13
  That understands when, when these changes are happening, it
• 9:16
  should be your managing broker.
• 9:17
  But unfortunately I know that's not always the case.
• 9:21
  So if you're going to dedicate right now to getting into some continuing education
• 9:24
  classes or some business education classes, give me a thumbs up and we'll
• 9:29
  hold each other accountable for that.
• 9:31
  But let's.
• 9:32
  Let's get into the next piece, which is the importance of taking time, right?
• 9:37
  All of this comes down to the importance of taking time.
• 9:40
  Over the last five years, we've been go, go, go, go, go.
• 9:43
  There's not been one contract that I haven't sent off to my client for review.
• 9:47
  And then either on the phone, on Zoom, or in person said, okay,
• 9:50
  let's go through these major points.
• 9:52
  And then do you have any other questions right there?
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  They have to review it.
• 9:57
  They have to have those questions.
• 9:58
  Because of course you always have that client that's just like, I
• 10:01
  trust you, you know, whatever.
• 10:03
  No, no, no.
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  Hold on.
• 10:04
  Like let's actually go through the finer details of this contract.
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  So you know what's funny.
• 10:08
  You must take that time and you must have the skills to slow down
• 10:11
  your client because those clients are like, Oh yeah, I trust you.
• 10:14
  Whatever.
• 10:15
  Those are the ones that are going to have the issues down the road.
• 10:17
  And then guess who's fault it is that you didn't point out, you know, X, Y, Z, who's
• 10:21
  paying the commission, whatever that is.
• 10:23
  That's a problem.
• 10:24
  So you need to have these conversations slow down.
• 10:26
  And then as my good friend, Jimmy Everett.
• 10:28
  It says he's a great lender here in Colorado.
• 10:31
  The ethics of our business is going to be tested in this little bit of downturn.
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  We are used to selling a ton of houses, making a ton of money, not having
• 10:40
  a whole lot of stop signs in our personal financial life or anything.
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  The ethics are going to be tested and whether you're a member of the realtor
• 10:47
  board and you've taken the ethics class or not Make sure you're being a good person.
• 10:51
  Make sure that you're not getting cutthroat, you know and doing dumb
• 10:55
  things I just had a story about You know a lender who is telling their
• 10:58
  client that this assumable loan is is a bad idea and it takes forever And
• 11:03
  all this stuff and I just I advised my it was actually one of my agents.
• 11:07
  I just said Let's step back from that just show the numbers right show the
• 11:12
  numbers of the exact same thing 100, 000 down with an 8 percent interest rate
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  100, 000 down with this assumable 4.
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  75 interest rate because that's the gap or whatever and then
• 11:22
  let the numbers talk, right?
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  We don't need to get in this emotional back and forth and we don't need to
• 11:26
  kind of play into that Clearly if you look at the numbers It should make sense
• 11:31
  and provide that opportunity for your clients to really dive in and be ethical.
• 11:35
  I understand we all have relationships, lending partners, title people, and
• 11:39
  whatever, but in the end, our job is to represent the client, right?
• 11:44
  And so if we're putting these two options in front of a
• 11:46
  client, let's make it happen.
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  Right?
• 11:48
  You can connect them with lenders.
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  You don't know what the rates are.
• 11:50
  You don't know any of that.
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  You're, you're a real estate agent.
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  You're not a lender.
• 11:54
  But sometimes they're going to go with a different lender.
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  Sometimes it makes sense.
• 11:57
  Sometimes that product, you know, that they're throwing
• 11:59
  out there makes more sense.
• 12:01
  As long as that lender is explaining what's going on to them.
• 12:03
  And being ethical and it's a better deal based on what your
• 12:07
  conversations are with your client, then absolutely go with it, right?
• 12:11
  This is our job.
• 12:12
  We have to step back and be like, okay, here's the deal.
• 12:14
  I see a little bit of, you know, pressure coming from this lender.
• 12:18
  He's saying that don't do this.
• 12:19
  Assumable.
• 12:20
  Literally, it's half the half the interest rate.
• 12:23
  They have the money for the gap.
• 12:25
  Like, let's see what the numbers take out to be.
• 12:27
  Find out what the fees are from the servicer, right?
• 12:30
  That's true.
• 12:30
  Assumables.
• 12:31
  You have to go straight to the servicer.
• 12:33
  The lender gets cut out.
• 12:34
  And that's why that back and forth is happening.
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  But if you go to the servicer, you have the fees.
• 12:39
  You have what it's going to cost.
• 12:40
  You have the gap.
• 12:41
  You have all that.
• 12:42
  Put it right next to the 8 percent or the 7 percent or whatever
• 12:45
  they're offering at that time.
• 12:47
  And let the client make that decision, right?
• 12:49
  And then.
• 12:50
  Come down to okay, like that's a huge savings or you know, it's not that much of
• 12:55
  a savings You're comfortable this person you have a relationship with a person.
• 12:58
  Let's go this route or let them make that decision That's that's where ethics
• 13:02
  really gets challenges when we're making the decision based on what we think
• 13:06
  the client wants So be very ethical.
• 13:09
  I'm committed to it Be kind to each other.
• 13:11
  The market's changing, and that's exactly what we need to do to advance this
• 13:16
  profession forward and do the right thing.
• 13:18
  So, I hope this helped.
• 13:20
  I know that sometimes, you know, going to those classes and stuff,
• 13:23
  you get that pit in your stomach.
• 13:24
  You're like, oh man, I, you know, it's analysis by paralysis.
• 13:27
  I don't want to do anything because I don't want to do something wrong, right?
• 13:30
  Here's what I challenge you to do as an agent, as a newer agent.
• 13:34
  If you feel like you, you know, don't want to make a mistake
• 13:37
  and you're overarching, learn.
• 13:39
  Slow down and learn, and then build.
• 13:41
  Right?
• 13:42
  You don't compare your chapter 1 to my chapter 10, but Every time you
• 13:46
  learn and we have a conversation about something build on that.
• 13:50
  Okay.
• 13:50
  So I don't want to answer that same question because we've
• 13:53
  already answered that question.
• 13:54
  I will because that's what I do for my agents.
• 13:57
  Maybe I enable them, but take and build, build and build and understand as a newer
• 14:02
  agent, you have to build that foundation.
• 14:04
  You have to answer these questions.
• 14:06
  And if you're feeling off put about.
• 14:08
  You know, going to someone and asking questions that you feel
• 14:11
  are basic, but you're just not understanding it or your fear.
• 14:14
  You know, you want to hear it from someone else and you can't do that where you're
• 14:17
  at or your current brokerage and your current team, whatever that is, reach out.
• 14:21
  I'd be happy to talk to you about what our culture is like at the Wolfpack at EXP.
• 14:25
  Because that's exactly what I pride myself on is like, okay, yep.
• 14:30
  We're going to talk about this.
• 14:31
  When I'm a mentor, I'm, I'm all the things so I can walk you through the basic stuff.
• 14:35
  There is times where I'm like, yeah, run that by the managing broker.
• 14:38
  I've never done that.
• 14:39
  Right.
• 14:39
  So I'm going to show them and be honest, but I'm going to make sure the
• 14:41
  managing broker responds, which are managing brokers are excellent EXP.
• 14:47
  And I have good relationship with them.
• 14:48
  So.
• 14:49
  They know that, you know, I'm filtering some of the easier questions and things
• 14:53
  like that so that you don't have to feel like you're going to the managing
• 14:56
  broker with stupid questions, dumb questions, because those that, those
• 15:00
  questions that go unanswered are the ones that are going to actually get
• 15:03
  you in trouble, not the ones that, you know, are, are out in there in the open.
• 15:07
  So I hope that helps.
• 15:09
  If you have any questions, let me know, comment, subscribe, follow me on the
• 15:12
  podcast and we'll continue rolling through, this crazy real estate world.
• 15:17
  Bye bye.