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NAR Settlement Unleashed: Game-Changing Predictions for Agents · The Real Estate Agent Playbook

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  Now that all the dust is settled, and we at least have a date in which
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  the new NAR settlement information will be out there, I wanted to
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  give you a few of my predictions.
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  Take them for what it's worth, I think there is going to be a lot of feeling
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  out to do with these new changes.
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  And, with all this said, the DOJ has still not signed off on the final settlement,
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  so we could have a huge impact.
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  flex and a change and then have them rain on the parade and say, Nope, this
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  has to change or that has to change.
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  So stay tuned for my predictions.
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  What's up guys.
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  Jeremy Kane, real estate agent playbook excited for this one.
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  Just to kind of talk about this.
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  What we do know is that change is coming and as you know, I am
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  here to help you win every single day at the game of real estate.
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  We're on the podcast and YouTube as well as over on IG.
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  The real estate agent playbook.
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  And so we are ready to dive into this.
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  But first, if you want to stay in the know and hear all of my wonderful
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  thoughts as I lay them out, as I am still a practicing real estate agent
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  and love coaching agents as well.
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  Please like, comment, subscribe.
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  Let me know what you think and let's get some engagement rolling as we roll.
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  Okay, so here we are.
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  It's coming into spring.
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  Busy time in real estate.
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  We had a lot of stuff go down in February and March regarding
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  the buyer's commission lawsuits.
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  NAR came down with the settlement in the middle of March.
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  And then everyone kind of changed the lending institutions have
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  all at least said I think the VA actually came out today saying they
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  were going to temporarily fix it with xyz FHA conventional loans.
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  They all took care of that so here we are now with this impending change the
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  option of a seller concession to pay the buyer's agent commission we still have
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  the option for the seller just to pay the buyer's agent commission as it stands now.
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  It just cannot be advertised in the MLS.
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  As for now, that's kind of what the settlement states.
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  So we will see what happens.
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  What we do know is that there will be some harder conversations.
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  Hopefully you've started to have those.
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  With your clients and maybe if you're anything like, , I've seen, it's not that
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  hard of a conversation, in Colorado.
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  We've always kind of had the conversation in our buyer's agency agreements, our
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  exclusive right to buy listing agreement.
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  So for us, maybe it's not a major flex for you.
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  Maybe you didn't even have a buyer's agent agreement.
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  In whatever state you're in and so there's a lot of in between here and
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  every state is different So if I say a term that doesn't really resonate
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  with you or a name of a document That's because i'm in colorado So, I will
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  tell you that for my entire career in our buyer's agency agreement there has
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  been a piece of the pie that says the Buyer is obligated to pay the seller
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  listing agent may pay You That is something that allows us to negotiate
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  our commissions into the contract buy and sell between the buyer and seller
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  So that is how we've been practicing for many many years here it's just now is
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  the seller, you know going to offer it.
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  Are they going to be You know, what are they going to be doing?
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  That's what we're going to talk about Here is the predictions of the
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  market not necessarily what's to come The DOJ may or may not accept it.
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  All of that stuff is kind of up in the air, but I think first and foremost,
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  there will be a testing phase, right?
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  There will be sellers out there, you know, testing, if they can save some money by
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  not paying buyer's agent commissions, there'll be buyer's agents out there
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  that are, you know, You know trying to win deals that are offering a little
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  bit lower commission , there will be just a testing ground on both sides.
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  And I think that that is Probably healthy for what's going to happen Where are
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  we going to market these will it be through the showing service will it be?
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  You know somewhere else or are we even going to be allowed to
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  market them in other places?
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  Because I wouldn't think that just taking away the commission from the mls, but
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  You Sending it out every time you show a property through the showing service
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  I don't think that that's gonna fly with the powers that be but as for now,
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  that's the settlement but moving forward They're putting this into play August
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  17th Regardless of what the DOJ has done or said So that's kind of what I think
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  it's just gonna be a you know Feeling out the goal is gonna be find out what
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  is best right what best works for all parties What are the, what are the limits?
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  Is there people getting creative?
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  Is there, you know, creative lending practices that are being had that'll
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  help get these buyers agents paid so that these buyers have representation,
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  which I think is of utmost importance to understand that the buyers, especially
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  the first time home buyers that have not purchased a home, having representation is
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  probably going to be beneficial for them.
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  So will that mean that, you know, there's going to be some buyers agents
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  that are surprised by this, because we all know that that happens where
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  people are a little bit behind on the news or whatever it could be.
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  And that's going to be a sad day, but make sure that as an agent, you are staying
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  up to date on what's going on in your market, your realtor board, your local.
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  Realtor boards and all of that so that you don't Show up to the closing table and
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  don't know who's paying you at that time because that'll be a problem For sure.
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  Okay.
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  So let's kind of extend this out a little bit.
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  Let's look a year ahead So next summer going into the busy season next summer.
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  What's that going to look like?
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  I think the testing out phase will be done.
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  We will kind of have some precedence set for what that looks like where we're
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  communicating the The seller offer or is it does it go straight to the
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  commission like kind of hinted in the settlement Or will that still be you
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  know, the seller offered commission?
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  What will be kind of the trends that set in and I think we'll end up with a
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  couple different lanes There will be a couple different, you know precedents
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  that are set that we kind of follow.
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  I do think that we will see commissions noted in our contract and the
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  additional provisions based on the ability to put it in there based
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  on our exclusive, right to buy.
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  And so I think that'll be negotiated.
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  Now what I do see is a market driven approach to these commissions.
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  And this is something that builders have done for a long time, right?
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  When the market was wild, they would, you know, suppress the commissions
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  a little bit because they didn't think they needed to pay as much.
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  Because.
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  Buyers were, you know, having to go to the new builds.
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  They have the incentives.
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  And so they're like, okay, well, the agents are going to come over here
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  anyways, cause they can't get them under contract and anything else.
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  And that went down.
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  So when it's a crazy seller's market, super intense, I think those commissions
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  may kind of follow that new build kind of platform where they are
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  suppressed and competitive situations.
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  Will brokers be more likely to, Lower that commission.
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  Absolutely.
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  Right.
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  Commissions are a hundred percent negotiable.
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  So all of this stuff I think will happen and be dictated by the, you know,
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  pressure of the market, so to speak.
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  And so that's something to really keep your eye on, but on the flip side.
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  When it does shift back to a buyer's market or, you know, inventory does
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  kind of pick up, which could be a while.
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  If you watch my, my other channel, you'll know that, but as we kind of
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  see the, the sellers and making it harder to purchase a home and harder
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  to harder to sell a home, I'm sorry.
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  I think that.
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  Those sellers might be enticed to say, Hey, we're going to pay a buyer's agent
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  a little bit more than we normally would.
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  And so I think that it's going to be very market driven.
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  And I think by the time we get through the testing phase, I think a year
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  out, we'll kind of be settled into our groove and we'll have that kind
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  of, new build kind of approach where if we have abundance of buyers and
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  we have abundance of competition, well, it's going to be net net.
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  Right.
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  What's the net of the offer?
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  Is there appraisal gaps that cover, you know, for going over and then offering
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  the concession and all of those things.
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  And somebody said something that I've always thought is certainly.
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  The commission is on the seller settlement sheet, but where does the money come from
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  that is paid to the, the agents, and the buyer, the buyer creates that it initiates
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  the loan, it pays it back over time, and so who really pays the commission?
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  That is the question.
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  And so we'll continue to.
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  You know navigate this as we go But I think for the after about a year
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  will kind of be settled in and I think the market will really drive it And
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  we will truly have negotiable full negotiation commissions as we go.
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  I was recently at an event and one of the top producing Team leaders
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  was on stage and what she said is a version of what I've been saying for
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  a long time because We've always had this piece in the Colorado Exclusive
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  right to buy and it basically was this it said if I have a client who
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  is absolutely in love with a property and We're all sitting at the table.
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  We're all Ready to go, putting an offer together.
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  The seller won't offer any commission to the buyer.
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  The buyer has no money to pay me.
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  The lender can't do it.
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  And so we've exhausted all options.
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  Me as a buyer's agent will probably take the fall on that because I have a
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  client who's trying to get into a home.
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  And at the end of the day, we are still here to help humans and make a difference.
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  And I've said this jokingly for a long time, but in the event you find your
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  dream home and there is no possible way for me to get paid what I charge,
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  my ex standard that I charge, then absolutely I will, you know, help you
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  get into that home and be there for you.
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  I would just ask that you maybe don't tell all your, all your friends about
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  that part, but tell all your friends about me as a real estate agent,
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  because my goal is to help people right.
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  Get into homes and we get compensated extremely well for the job we do.
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  Not saying we get overpaid, we get compensated correctly.
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  And the truth is, is that if you have the chance to You know, get somebody into a
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  home and you as an agent are putting your interest and your financial interests
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  ahead of that, person getting into a home and achieving the American dream
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  and doing that, then I don't think your career's, you know, long for the wear.
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  And so.
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  I certainly will help somebody get in.
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  Certainly I don't work for free, but I will help somebody get into a home knowing
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  that if I did that and that's a part, if that's the last piece of the puzzle that
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  allows them to get that home that they absolutely love, that will go much further
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  and I will make many more dollars based on referrals and You know, all the things,
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  multiple, you know, purchases, if this is their first home, and so on, which is
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  exactly where we need to be as agents.
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  I don't want anyone to work for free, but I do want people to take that
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  human element and make sure that they understand that if you are standing
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  in the way, You can step aside.
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  You can handle this situation however you want, right?
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  But, you know, holding the line and saying this is my value.
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  I don't work for less and making your client, who you are a fiduciary to
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  in most cases, not get into that home because you're not getting compensated X.
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  I can tell you right now that that will eventually Come back to get you.
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  and so I want everyone to hear that we can do this and as agents, if
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  we lift up the community together, we work together, maybe we're a
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  little bit flexible in those extreme circumstances, which will be extreme.
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  It'll be kind of the first time home buyer situations and the people that,
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  you know, maybe don't have as much cash to bring to the table because they're
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  putting all their cash into their down payments that they qualify for the
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  max amount and all of those things.
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  And.
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  You know, the truth is if we just work through it, we just have the
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  conversations and we are humans about it.
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  I think it will be much better.
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  So, that was absolutely a key takeaway of a event I was at recently.
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  And, the lady on stage put it a little more eloquently than I had in the past.
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  So hopefully I got a little better at practicing that speech as I do talk
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  about that with my clients all the time.
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  Saying, I will never put my interests ahead of yours.
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  This is your journey.
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  This is your home.
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  And I think that's something that we can all listen to as we go through these
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  times of change, help each other out, be good humans, be good listing agents,
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  be good buyers agents, and this will all be okay because the conversations
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  will get easier as you move forward.
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  As they already have.
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  And so I hope that you have already implemented some of the
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  changes, to better your business and bring more value to your clients.
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  But if you have not, August is coming soon.
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  So start to kind of think about what's this, this looks like.
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  I do have a new webinar coming out.
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  Buyers agent to listing agent in 30 days.
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  I will link that below when it's ready But if it's not down there just comment
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  webinar and it'll make sure you get that on release and I would love to chat with
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  you anytime realtor game plan call below.
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  So please like comment subscribe We'll see you next time.
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  Stay with it.
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  These are just my predictions, but I honestly think we can make this
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  a positive as we move forward and it's not the end of the world.
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  The sky isn't falling for real estate agents and buyers agent commissions.
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  We'll see you next time.