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What the NAR Settlement ACTUALLY Means for Real Estate Agents · Massive Agent Podcast

0:00
SPEAKER_00: Well, last Friday, NAR dropped an absolute bomb on the industry, changing the way real estate is done, changing the way commission flows, and changing the rules for all of us.
0:13
SPEAKER_00: We're going to talk about the NAR settlement today and more importantly, what it actually means to you as a real estate agent moving forward.
0:20
SPEAKER_00: The Massive Agent Podcast with lead generation tips and strategies to give you more leads and sell more homes.
0:28
SPEAKER_00: I love to buy houses.
0:29
SPEAKER_00: I like to sell houses.
0:33
SPEAKER_00: Wait a minute.
0:34
SPEAKER_00: Leads a week.
0:37
SPEAKER_00: I've had better.
0:39
SPEAKER_00: Oh have I got your attention now?
0:42
SPEAKER_00: Here's your host, Dustin Brohm.
0:47
SPEAKER_00: What is up, guys?
0:48
SPEAKER_00: Welcome to episode 326 of the Massive Agent Podcast.
0:52
SPEAKER_00: I am your host, Dustin Brohm, with Real Broker.
0:55
SPEAKER_00: It's the first episode I'm able to say that I am with Real Broker.
0:58
SPEAKER_00: Pretty cool.
0:58
SPEAKER_00: If you didn't know that, go listen to the last episode.
1:01
SPEAKER_00: I explained why I left EXP after six years and joined Real Broker, and why I am more excited than I've literally ever been in real estate.
1:10
SPEAKER_00: And it's just getting started.
1:11
SPEAKER_00: So uh yeah, I'm just excited.
1:14
SPEAKER_00: So what I've that excitement bleeds over into today's episode, despite me being like if I'm being honest, I'm a I'm a little nervous to do this episode.
1:22
SPEAKER_00: I've been nervous to do this episode because this shit matters.
1:26
SPEAKER_00: Like this topic here, talking about the NAR settlement, the rules that are changing, the way that we do business is changing.
1:33
SPEAKER_00: I want it, I want to get this right.
1:35
SPEAKER_00: I wanted to take time to get this right.
1:37
SPEAKER_00: And if you follow me on Instagram, you saw that I did a story on Friday, the day that this news dropped about the NAR settlement.
1:45
SPEAKER_00: And I said, look, I'm not going to come out with a bunch of content about this until I digest it, until I learn more about it, until I hear a bunch of different perspectives from people that I respect about what it actually means, right?
1:58
SPEAKER_00: Now, what I've seen between then and now is pathetic, if I'm being quite honest.
2:05
SPEAKER_00: Real estate agents are screaming that the sky is falling.
2:10
SPEAKER_00: The amount of chicken littles in this industry is pathetic, and it shows that agents, possibly you, hopefully not, but possibly you, have just not been willing to read past the freaking headlines.
2:23
SPEAKER_00: And there's some insane headlines out there about what this settlement means.
2:28
SPEAKER_00: For example, CNN saying that this is the end of the 6% commission.
2:33
SPEAKER_00: Complete and total horseshit.
2:35
SPEAKER_00: Spoiler alert, the NAR settlement has no bearing whatsoever on how much you charge your clients for your services.
2:43
SPEAKER_00: It has no bearing on it whatsoever.
2:45
SPEAKER_00: I'm going to get into what it actually means here in a second.
2:47
SPEAKER_00: Before I do, like I said, I was nervous to do this episode, but um I can't think of a more important topic to talk about this week.
2:57
SPEAKER_00: And I'm glad that I took the time to digest it, to learn, so that I can get it right.
3:04
SPEAKER_00: Because the settlement itself is important.
3:06
SPEAKER_00: And we're going to go over what actually happened and then what it means to you and how you should be doing business.
3:14
SPEAKER_00: I'm going to talk about who this settlement hurts.
3:16
SPEAKER_00: I'm going to talk about who it helps.
3:18
SPEAKER_00: I'm going to talk about what it actually does and what it actually does not do.
3:22
SPEAKER_00: And this is going to be a great episode.
3:24
SPEAKER_00: So before we get started, keeping current matters, uh, they are a tool that every real estate agent needs in their tool belt immediately, right?
3:34
SPEAKER_00: Of everything that's happening right now, because of the NAR settlement and the rule changes, the rule changes that are that are coming potentially in July, this July, like as in a few months away, because of that, it's no longer just interest rates affecting your future business.
3:53
SPEAKER_00: Interest rates affecting homes selling, homes not selling, you making money, you not making money.
3:58
SPEAKER_00: There's more to it now.
4:00
SPEAKER_00: So I cannot think of an environment that's more important to have a tool of expert advisors like keeping current matters.
4:06
SPEAKER_00: You need KCM in your tool belt.
4:08
SPEAKER_00: Most of the top producers already have it in their tool belt.
4:11
SPEAKER_00: If you look at all the top agents in your market who are selling most of the homes, they probably use keeping current matters.
4:16
SPEAKER_00: So you owe it to yourself to look into them.
4:18
SPEAKER_00: Try it out for free right now.
4:20
SPEAKER_00: Go to trykcm.com/slash BAM to see if keeping current matters is right for you.
4:25
SPEAKER_00: And spoiler alert, it is.
4:27
SPEAKER_00: It is.
4:28
SPEAKER_00: You just need it.
4:29
SPEAKER_00: And then BAMX, the BAMX community is absolutely on fire.
4:32
SPEAKER_00: It's an amazing group of like-minded, entrepreneurial, top-producing agents all around the country.
4:38
SPEAKER_00: Collaborative, there's online courses, there's trainings, there's there's meetups and masterminds.
4:43
SPEAKER_00: You owe it to yourself as well to check out the BAMX community.
4:46
SPEAKER_00: Go to nowbam.com and check it out or directly massive agentpodcast.com slash BAMX.
4:52
SPEAKER_00: Let's jump into the meat and potatoes here.
4:57
SPEAKER_00: This topic of the NAR settlement that dropped on Friday, what is that?
5:02
SPEAKER_00: Friday the 15th, Friday the 15th of March, 2024, that has a an alarming number of real estate agents in a tizzy, just having a hissy fit, throwing tantrums, misunderstanding what the hell even happened and what it means.
5:19
SPEAKER_00: And the amount of pessimism that I've seen on social media from realtors is pathetic.
5:26
SPEAKER_00: It really is.
5:27
SPEAKER_00: And so if you're one of these agents that is, if you're worried, I get it.
5:33
SPEAKER_00: When you're uncertain, you can be worried.
5:36
SPEAKER_00: So we're going to clear up a lot of this uncertainty.
5:38
SPEAKER_00: I don't want you to worry.
5:39
SPEAKER_00: If you're, as I'll explain, if you're in a certain camp, you should worry.
5:44
SPEAKER_00: There, there are agents who should worry, no doubt about it.
5:47
SPEAKER_00: But if you're listening to the show and you're willing to take action and actually work, you're not someone who needs to worry, just you know, getting ahead of it.
5:55
SPEAKER_00: But uh, all these chicken littles, all these, it's I'm kind of excited for you.
6:02
SPEAKER_00: If you're a real estate professional, if you take this, if you take your job seriously, and if you really dive in and hone your skills and practice and learn and educate yourself and get really good at at selling yourself, all of these agents that just out of themselves as not knowing what the fuck is happening, you're gonna be getting business from them because they're not gonna be hired anymore.
6:28
SPEAKER_00: There's all these agents out there on social media with misinformation, misunderstanding, uh, the sky is falling, pessimism, blah, blah, blah.
6:36
SPEAKER_00: It's all about me and my commission, blah, and consumers are seeing it, and they're like, okay, I'm not gonna hire that person anymore.
6:42
SPEAKER_00: There's all these agents that are literally shooting themselves in the foot.
6:46
SPEAKER_00: They are killing their own careers on social media right now.
6:49
SPEAKER_00: And I hope to God you're not one of them.
6:51
SPEAKER_00: But if even those that are, it's because the media, the headlines, are not helpful, especially CNN with the days of the 6% commission are gone.
7:01
SPEAKER_00: No, they're not.
7:03
SPEAKER_00: No, they're not.
7:04
SPEAKER_00: Let's say they are.
7:05
SPEAKER_00: The days of the 6% commission are gone.
7:06
SPEAKER_00: Cool.
7:06
SPEAKER_00: Now we'll charge seven.
7:08
SPEAKER_00: Now I'll charge seven or eight.
7:09
SPEAKER_00: How about that?
7:10
SPEAKER_00: Because you can, just like you always could.
7:13
SPEAKER_00: So stop it.
7:15
SPEAKER_00: Here's what happened.
7:16
SPEAKER_00: All right.
7:16
SPEAKER_00: And I am, if you want to really dive into the details, I'd encourage you to dive into the details of what this actually means.
7:23
SPEAKER_00: This$418 million settlement by the National Association of Realtors, you need to go to nowbam.com.
7:29
SPEAKER_00: BAM has the best, most in-depth coverage I've seen yet.
7:34
SPEAKER_00: It's it's super comprehensive.
7:35
SPEAKER_00: I'm learning so much from BAM.
7:38
SPEAKER_00: Incredible.
7:39
SPEAKER_00: So here's some key details.
7:41
SPEAKER_00: NAR has agreed to settle a series of antitrust commission lawsuits between NAR and sellers, okay, not the home buyer one, home buyer lawsuits, but home seller ones, paying$418 million in damages and revising commission rules.
7:59
SPEAKER_00: Okay, this is the part that agents are freaking out about because they don't understand.
8:03
SPEAKER_00: One of the key terms of the settlement is the complete removal of buyer broker compensation from the MLS.
8:09
SPEAKER_00: So this settlement does two things, right?
8:12
SPEAKER_00: Two things.
8:13
SPEAKER_00: Uh, I need to pull up my notes here.
8:14
SPEAKER_00: Number one, no, no more offers of buyer broker compensation through the MLS.
8:22
SPEAKER_00: Through the MLS.
8:24
SPEAKER_00: It's mind-boggling how many dummy agents I'm seeing say buyer's agents can't get paid anymore.
8:32
SPEAKER_00: Where the fuck does that say that?
8:34
SPEAKER_00: It says no more offers of broker compensation in the MLS.
8:39
SPEAKER_00: What about all the places not on the MLS?
8:41
SPEAKER_00: Social media, signs, advertising, conversations, right?
8:47
SPEAKER_00: So many other places where you could advertise a buyer's agent commission.
8:51
SPEAKER_00: And by the way, forms are gonna change.
8:53
SPEAKER_00: Like the forms you use, contracts you use, buyer broker agreements, listing agreements, purchase contracts, addenda, it's all going to change to uh to um what's the word?
9:04
SPEAKER_00: To support all of this, right?
9:05
SPEAKER_00: In in um in reaction to all of this.
9:08
SPEAKER_00: It's going to it's gonna have to change because of these new rules.
9:11
SPEAKER_00: So it used to be the the place, and in some areas, the only place you were allowed to discuss or display buyer's agent commission was on the MLS.
9:21
SPEAKER_00: Well, now because of the settlement, it can't be advertised in the MLS anymore.
9:25
SPEAKER_00: But you can literally advertise it anywhere else you'd like.
9:28
SPEAKER_00: The second thing that this does, this settlement, is written repres uh written representation agreements for buyer's agents.
9:38
SPEAKER_00: If you are an MLS participant, you now must, must use buyer broker agreements.
9:44
SPEAKER_00: If you have been, if you're one of the agents out there, the real professionals that have been using buyer broker agreements all along, uh, what a huge advantage you have.
9:54
SPEAKER_00: If you have not been using buyer broker agreements, you're gonna have to learn how.
9:57
SPEAKER_00: It's no longer an option.
9:59
SPEAKER_00: But I'm telling you, that's what's best for you.
10:01
SPEAKER_00: You're going to make more money, you're gonna have better clients, your clients are gonna be happier, it's more transparent for your clients.
10:08
SPEAKER_00: It's the buyer broker agreement, it is such a better tool.
10:13
SPEAKER_00: And now we're forcing everyone to use it.
10:15
SPEAKER_00: What an awesome thing that is.
10:17
SPEAKER_00: It it is good for you.
10:18
SPEAKER_00: If you think that's that that's gonna hurt you, it's not.
10:21
SPEAKER_00: You just have to learn how to use it.
10:22
SPEAKER_00: You have to learn some language around it, you have to learn how to how to bring it up to your sellers or sorry, to your buyers.
10:29
SPEAKER_00: You have to explain all of it, and then if they're not willing to compensate you for their services, you don't work with them.
10:37
SPEAKER_00: So those two things.
10:38
SPEAKER_00: So, in summary, the settlement means this no more offers of broker compensation in the offered in the MLS and representation.
10:46
SPEAKER_00: Why am I struggling with that?
10:47
SPEAKER_00: Buyer broker agreements are now required for buyers' agents.
10:51
SPEAKER_00: Okay.
10:52
SPEAKER_00: So next thing NER, um and I want to clarify using buyer broker agreements, if you're an MLS participant, specifically those working with buyers, you must enter into written representation agreements with your buyers.
11:10
SPEAKER_00: Now, this settlement does not apply to every brokerage in the country, right?
11:15
SPEAKER_00: So this is the part that I'm still trying to figure out what this means, but there's 90, 92, 94 brokerages that are actually left out of this.
11:24
SPEAKER_00: 94 brokerages were left out of the settlement, including some of the biggest brokerages, Compass, EXP, Redfin, Howard Hanna.
11:31
SPEAKER_00: Because uh brokerages doing, let's see, uh brokerages with an NAR member as principal that had a transaction volume of$2 billion or or below is who is included.
11:45
SPEAKER_00: So some of the largest were excluded.
11:48
SPEAKER_00: Well, that's very interesting.
11:49
SPEAKER_00: So we're going to see which brokerages add, you know, they they join the settlement here soon.
11:55
SPEAKER_00: I don't think that that's what you need to worry about at all, but there's information on that that your your brokerage may not even be part of the settlement yet.
12:02
SPEAKER_00: It's still changing the MLS rules, of course, and it and no more offers of compensation through the MLS.
12:09
SPEAKER_00: But is your broker protected through the settlement?
12:11
SPEAKER_00: I don't know yet.
12:12
SPEAKER_00: That the this still all has to be approved by a judge, by the way.
12:16
SPEAKER_00: This is a proposed settlement.
12:17
SPEAKER_00: This is not written in stone, but as of now, these as of now, what is proposed, okay, if it's approved by a judge, these rules removing compensation from the MLS and forcing buyers agents who are MLS participants to use buyer broker agreements will take place in July of this year, July 2024, just a few months from now.
12:40
SPEAKER_00: That's three months from now.
12:41
SPEAKER_00: Okay, so as of now, that's what it looks like is going to happen.
12:46
SPEAKER_00: Here's what the settlement has not changed, okay?
12:50
SPEAKER_00: Commission or how much commission you charge for your services is not affected whatsoever.
12:57
SPEAKER_00: It's negotiable as always.
13:00
SPEAKER_00: You want to charge 10%, do it.
13:03
SPEAKER_00: You're if you can prove to your client, if you can show that you are worth 10% and they believe that that is valuable to them and they agree to it, cool.
13:11
SPEAKER_00: If you want to charge 1%, if you want to charge$500 a flat fee, do it.
13:17
SPEAKER_00: Just like before, you could charge whatever the hell you want.
13:20
SPEAKER_00: This settlement does not affect compensation whatsoever.
13:24
SPEAKER_00: It only affects where the compensation is listed.
13:30
SPEAKER_00: So the buyer's agent commission removed from the MLS, yes.
13:33
SPEAKER_00: Buyer's agent commission can still be advertised literally anywhere off the MLS.
13:39
SPEAKER_00: Social media, advertising, right?
13:42
SPEAKER_00: So door hangers, postcards, flyers, your signs, like social media, all of it.
13:49
SPEAKER_00: Buyer's agents will need to negotiate commission with the buyer up front.
13:57
SPEAKER_00: If you've been using buyer broker agreements, like in Utah, it's very, very standard.
14:01
SPEAKER_00: That's how I was taught 13 years ago when I first came into real estate that that's just how it worked.
14:06
SPEAKER_00: So I've always used buyer broker agreements.
14:09
SPEAKER_00: So if I'm gonna go through how I would approach that with a with a potential buyer.
14:16
SPEAKER_00: This is just how I was trained.
14:17
SPEAKER_00: So if you if you haven't gotten there yet, please don't freak out.
14:20
SPEAKER_00: You just have to learn how to do this thing.
14:23
SPEAKER_00: But if you're a realtor and you've been selling houses at all ever, look at all the shit you've already had to learn.
14:28
SPEAKER_00: Before you, like even when you got your license, you know, with day one, you're like, okay, I'm a realtor now, and you're like, oh shit, what do I do now?
14:35
SPEAKER_00: You had to learn how to write offers, how like what all the contracts mean, when to use certain disclosures, and this.
14:42
SPEAKER_00: You had to learn all of that.
14:43
SPEAKER_00: And you already did, okay?
14:45
SPEAKER_00: You've learned how to communicate with clients, you've learned the deal structure, you've learned commission, um, commission law and all of this stuff.
14:54
SPEAKER_00: So now you just have to learn one more thing: how to negotiate with your buyers up front to pay you a commission.
15:02
SPEAKER_00: What a lot, unfortunately, what a lot of agents would do is they would not have a buyer broker agreement and they would just take whatever the listing was paying a buyer broker.
15:10
SPEAKER_00: And they never had to have the conversation.
15:13
SPEAKER_00: Unfortunately, what a lot of agents would do is say, hey, you know what?
15:16
SPEAKER_00: I'm free to you.
15:17
SPEAKER_00: Like buyers' agents would say to their buyers, I'm free.
15:21
SPEAKER_00: The seller pays me.
15:22
SPEAKER_00: Doesn't cost you a dime.
15:24
SPEAKER_00: Hmm.
15:25
SPEAKER_00: You got to stop that immediately.
15:27
SPEAKER_00: Knock that shit off.
15:28
SPEAKER_00: Because first off, it's bullshit.
15:29
SPEAKER_00: Just because the seller was paying you doesn't mean it's free because who's bringing the money to the transaction?
15:33
SPEAKER_00: The buyer.
15:34
SPEAKER_00: The buyer's buying the house, it's their money.
15:36
SPEAKER_00: And yes, tech the seller receives the money and some of that then gets paid back in commission.
15:41
SPEAKER_00: So it's just semantics, right?
15:44
SPEAKER_00: You understand both ways.
15:45
SPEAKER_00: You could say it's one way or another, but now you're not being paid directly from the seller anymore up front.
15:53
SPEAKER_00: You can always include that with your offer.
15:55
SPEAKER_00: So I believe purchase contracts may be amended to include compensation as part of the offer in the purchase contract itself.
16:03
SPEAKER_00: Uh in Utah, there's an addendum already that's been used for many, many, many years to do that.
16:09
SPEAKER_00: So you could submit an addendum for real estate compensation with the purchase contract.
16:13
SPEAKER_00: So maybe you just need an addendum.
16:15
SPEAKER_00: Maybe they changed the purchase contract itself.
16:18
SPEAKER_00: I don't know.
16:19
SPEAKER_00: But forms will be changing.
16:20
SPEAKER_00: So let's talk about how you negotiate your commission with the buyer up front.
16:24
SPEAKER_00: Uh, and then I'll get to then I'll dive deeper.
16:27
SPEAKER_00: But I don't want to skip this part because this is where a lot of agents freak out.
16:30
SPEAKER_00: A lot of buyers' agents freak out.
16:32
SPEAKER_00: So instead of just taking whatever the listing gives you and never broaching the subject of compensation with your buyers, which is just bad.
16:40
SPEAKER_00: Like that's first off, it's it's not honest or accurate, right?
16:46
SPEAKER_00: They need to understand that they're if they want your services, they need to pay for it.
16:50
SPEAKER_00: It it's great that the seller's been willing to pay your commission, but they need to understand they're still on the hook for it.
16:56
SPEAKER_00: So with the buyer broker agreements that I've used on the buyer broker agreement, I would list how much I was charging for my services.
17:04
SPEAKER_00: So if they as a buyer were charging me as a buyer's agent, sorry, if they were hiring me as a buyer's agent, I would put, for example, three cupcakes, right?
17:14
SPEAKER_00: I was charging three cupcakes.
17:16
SPEAKER_00: So they would agree, hey, we're gonna have you as our agent when we sign this.
17:20
SPEAKER_00: Uh it lays out, here's what's so great about a buyer broker.
17:24
SPEAKER_00: It it just gets it all out of the way up front.
17:27
SPEAKER_00: All of my responsibilities to them as their agent, my fiduciary responsibility, all of that stuff laid out in black and white, literally.
17:35
SPEAKER_00: All of their responsibilities, what they need to do, what the way it all works, laid out in black and white.
17:42
SPEAKER_00: If there was, if you don't have a buyer broker agreement where the buyer's agreeing to pay a certain amount, there's been situations in the past where an agent would say, Hey, you told me you'd pay me an extra 2% at closing if we found your dream home.
17:54
SPEAKER_00: So pay up.
17:54
SPEAKER_00: And they're like, I didn't say that.
17:56
SPEAKER_00: Well, this eliminates it because you're just agreeing up front in black and white.
18:00
SPEAKER_00: Both parties sign, you know what your compensation is, and the buyer's obligated to pay it.
18:05
SPEAKER_00: If the sellers, if the listing is offering a certain amount that covers what the buyers already said that they will pay you, great.
18:15
SPEAKER_00: Then the buyer's not paying out of pocket for any of it.
18:17
SPEAKER_00: That's awesome.
18:19
SPEAKER_00: So, and that's where the confusion happened.
18:21
SPEAKER_00: But the buyer, you need to get them to agree to pay whatever it is you charge, three cupcakes up front.
18:26
SPEAKER_00: Now, the buyer then has full control over whether they want to go see a property that isn't offering three cupcakes.
18:33
SPEAKER_00: Maybe the property is offering nothing.
18:35
SPEAKER_00: Maybe it's offering one cupcake or two cupcakes.
18:38
SPEAKER_00: So now the buyer's like, okay, if I if we buy this house, we're we still have to pay our agent three cupcakes.
18:45
SPEAKER_00: The seller will contribute two cupcakes, so we're gonna have to pay out of pocket one cupcake.
18:50
SPEAKER_00: And they just factor that into their decision-making process on are they going to see the house?
18:54
SPEAKER_00: Are they gonna make an offer on the house?
18:56
SPEAKER_00: And for how much, right?
18:58
SPEAKER_00: So I would talk with buyers and say, hey, look, uh for my services, for me to do A, B, C, D, E, and F, I just I lay out, you've really got to sell everything you're gonna do for them before you even get to this part.
19:10
SPEAKER_00: And then for all of that, for everything that I'm gonna do for you, I charge three cupcakes.
19:16
SPEAKER_00: And here's the way that it works we're gonna go see houses.
19:19
SPEAKER_00: Some of those houses are going to offer a buyer's agent commission.
19:22
SPEAKER_00: Some of them will offer three cupcakes, some will offer two, some will offer one.
19:25
SPEAKER_00: So if you find a house that covers this three cupcake obligation, great.
19:30
SPEAKER_00: Then you're not having to pay any of it out of your pocket, Mr.
19:34
SPEAKER_00: or Mrs.
19:34
SPEAKER_00: Buyer.
19:35
SPEAKER_00: If we if we go see a house and you want to buy it, you want to make an offer on it, and they're only offering two cupcakes or one cupcake, then, well, you're gonna have to make up the difference.
19:45
SPEAKER_00: I'm just letting you know up front.
19:46
SPEAKER_00: So now you can decide which houses you want to see, which houses you want to pursue.
19:50
SPEAKER_00: And I never had anyone push back on this ever.
19:55
SPEAKER_00: Now, you may have somebody push back on the number or the the number of cupcakes, but you can get past that, right?
20:01
SPEAKER_00: That's where you have to learn some negotiation and all that.
20:04
SPEAKER_00: But that buyers, they just they they liked that because then it's just out of the way.
20:09
SPEAKER_00: It's just out of the way.
20:10
SPEAKER_00: And I've even had buyers say, you know what, I don't want to see that house because we don't want to come out of pocket that much for your compensation.
20:16
SPEAKER_00: And others say, you know what, I really want that house.
20:18
SPEAKER_00: There's a shortfall, we'll we'll pay that.
20:21
SPEAKER_00: And there's ways you can get a seller credit.
20:23
SPEAKER_00: There's you could always ask the seller to pay a certain compensation if they're only offering two cupcakes.
20:28
SPEAKER_00: You say, hey, this offer is based on three cupcakes now.
20:32
SPEAKER_00: You can do that with the new rules, right?
20:34
SPEAKER_00: So it's just that's what's changing, not how much you get.
20:39
SPEAKER_00: You can charge whatever you want, right?
20:41
SPEAKER_00: This is better for buyers' agents.
20:43
SPEAKER_00: This is better for consumers because it's more transparent, and there's more the buyers feel like they're more in control of the process.
20:50
SPEAKER_00: They get to decide what they want to see, and they're fully empowered.
20:54
SPEAKER_00: This is amazing.
20:55
SPEAKER_00: So uh forms will be changing to accommodate these these uh changes, of course.
21:00
SPEAKER_00: Listing agreements, buyer broker agreements, the purchase contract, buyers with agents.
21:05
SPEAKER_00: Here's what's cool.
21:06
SPEAKER_00: Okay, I believe this is this these changes give a huge leg up to sellers who are offering buyers agent commission because there's a lot of a lot of uh listing agents, a lot of sellers, a lot of people in general who just think that this is this means that you don't have to offer it at all, that buyers' agents don't need to get paid anymore.
21:26
SPEAKER_00: Okay, so if you're a seller, you have a huge competitive advantage if you're offering compensation, especially if it's a fair compensation.
21:34
SPEAKER_00: Buyers with agents will now be way more likely than before to seek listings that will cover their agent commission.
21:42
SPEAKER_00: Let me say that again.
21:44
SPEAKER_00: It's even more important for sellers to offer commission because more than ever, buyers are going to be looking for listings that offer to pay their agents commission in full.
21:54
SPEAKER_00: So if you if you if your sellers are willing to offer a fair compensation to a buyer's agent, They have a huge competitive advantage, much more so than before.
22:03
SPEAKER_00: I'm going to say it one more time because it's that important.
22:05
SPEAKER_00: Buyers with agents will now be way more likely to seek listings that will cover their agents' commission in full.
22:13
SPEAKER_00: Even more important for sellers to offer a compens uh commission.
22:16
SPEAKER_00: Who does this settlement help?
22:19
SPEAKER_00: I'm going to talk about who it helps and who it hurts.
22:22
SPEAKER_00: The settlement helps agents who use buyer broker agreements.
22:26
SPEAKER_00: It's going to help you a lot.
22:27
SPEAKER_00: It's going to help agents who have confidence, agents that have practiced, agents that know how to broach the topic of compensation in a way that is mutually beneficial, right?
22:40
SPEAKER_00: You may have to practice this.
22:42
SPEAKER_00: You should be practicing anyways.
22:43
SPEAKER_00: But let me ask you something.
22:44
SPEAKER_00: Is that different?
22:46
SPEAKER_00: Has that changed?
22:47
SPEAKER_00: Is that a new thing that is now you should be really good at this now since Friday, and before Friday you didn't?
22:53
SPEAKER_00: No.
22:54
SPEAKER_00: You should have been doing this shit all along.
22:55
SPEAKER_00: And the best agents already have been.
22:58
SPEAKER_00: This is why when you look on social media at the leaders of the industry, every single one of them is optimistic.
23:06
SPEAKER_00: They're excited almost because it's opportunity because they've already been doing these things.
23:12
SPEAKER_00: They're already ahead.
23:14
SPEAKER_00: If you're not ahead, you can get ahead easily because there's so much confusion and unwillingness, apparently, to actually read into what all this means.
23:23
SPEAKER_00: It helps sellers who offer competitive compensation.
23:26
SPEAKER_00: It helps agents who know how to sell their value.
23:30
SPEAKER_00: Let's talk about who it hurts.
23:32
SPEAKER_00: Buyers' agents who don't use buyer broker agreements.
23:35
SPEAKER_00: It hurts buyers' agents who say my services are free.
23:38
SPEAKER_00: The seller pays my commission.
23:40
SPEAKER_00: It hurts agents that are unwilling to learn new skills.
23:45
SPEAKER_00: It hurts agents who are unwilling to practice getting good at new skills.
23:52
SPEAKER_00: It really hurts those that don't have a good support system.
23:55
SPEAKER_00: You don't have a good brokerage, you don't have a good broker, you don't have a good team, you're not around leaders, you don't have a financially uh you don't have a growth partner financially invested in helping you succeed and build someone who's already built a big business.
24:08
SPEAKER_00: If you don't have a great support system, if you're not part of masterminds, if you're not part of a great brokerage culture like Real Broker has or some of these others, with leadership and access to great great leadership, it's gonna hurt you.
24:24
SPEAKER_00: Who you're surrounded with matters dramatically now.
24:27
SPEAKER_00: It always has.
24:28
SPEAKER_00: It always has.
24:29
SPEAKER_00: It's just more important.
24:31
SPEAKER_00: So to wrap it all up, I overall think this is such a good thing.
24:38
SPEAKER_00: It's good for consumers, it's good for agents.
24:40
SPEAKER_00: Now it's good for great agents.
24:43
SPEAKER_00: This really is not good for shitty, lazy agents.
24:46
SPEAKER_00: I'm sorry.
24:47
SPEAKER_00: So will there be agents leaving the industry?
24:49
SPEAKER_00: Absolutely.
24:50
SPEAKER_00: There are agents that already are throwing in the towel.
24:54
SPEAKER_00: There are agents, hopefully not you, but agents will not be able to survive moving forward because they're not willing to do the work.
25:03
SPEAKER_00: If you're a lazy agent, if you mail it in, if you're not willing to try new things, to do new things, to get it in a great support system, you're gonna struggle.
25:15
SPEAKER_00: But if you're willing to do those things, my God, there's so much more opportunity.
25:19
SPEAKER_00: So the agents that are left in the industry are gonna be making more money than ever before because there's less competition.
25:26
SPEAKER_00: The the need for representation to buy a property or to sell a property does not go away.
25:34
SPEAKER_00: The demand for great agents does not go away.
25:38
SPEAKER_00: I believe this increases the demand for great agents.
25:42
SPEAKER_00: And if you are one of those people and you're selling houses and you're you're committed to personal growth, you're committed to personal development, you're learning, you have a great support system, you're doing your best, you're growing.
25:53
SPEAKER_00: If you if you're like, oh, I really need to become one of those great agents, I would bet that you are much better than you give yourself credit for.
26:03
SPEAKER_00: The best agents are always trying to think of how to get better.
26:06
SPEAKER_00: Right?
26:07
SPEAKER_00: The winners are always thinking, I've got to do more.
26:09
SPEAKER_00: I came up short here, I got to fix this, I gotta do more.
26:12
SPEAKER_00: The losers don't even try.
26:15
SPEAKER_00: The losers wonder why shit's not falling in their lap.
26:19
SPEAKER_00: So if you are, if you're growing, if you're doing some level of business, if you're if your butt is in the right seat, you're probably one of you're probably in the camp of great agent versus one of the shitty ones.
26:32
SPEAKER_00: You gotta give yourself credit for that.
26:33
SPEAKER_00: The fact that you think you're not great, but yet you have evidence of that shows that that's just evidence that you are great or that you're moving in that direction.
26:44
SPEAKER_00: This is such a great thing for consumers because transparency is a good thing, right?
26:50
SPEAKER_00: And not to mention, as a as a buyer's agent, you now know up front if a if someone is unwilling to pay for your services, you can now not waste your time with them.
27:02
SPEAKER_00: That's a great thing.
27:06
SPEAKER_00: So I would I'll end with this.
27:09
SPEAKER_00: Educate yourself.
27:11
SPEAKER_00: There was a great, I'm gonna okay.
27:13
SPEAKER_00: There was a fantastic breakdown of about an hour from Sharon Stravatsa, the president of Real Broker.
27:20
SPEAKER_00: He's one his leadership, his mind is one of the biggest reasons why one of the main reasons why I chose to partner with Real.
27:28
SPEAKER_00: He did a great breakdown.
27:30
SPEAKER_00: The best that I've seen so far.
27:32
SPEAKER_00: And it's it's now online.
27:35
SPEAKER_00: I will put a link to it in the show notes.
27:37
SPEAKER_00: I'll if you're watching on YouTube, I'll put it in the YouTube description.
27:40
SPEAKER_00: It's uh it's hosted on Vimeo, I believe.
27:42
SPEAKER_00: But I will I'll share that.
27:44
SPEAKER_00: It's open to all agents.
27:45
SPEAKER_00: You don't have to be with Reel.
27:47
SPEAKER_00: It's just out there for the industry.
27:49
SPEAKER_00: I highly recommend that you take the hour and watch it and digest it.
27:53
SPEAKER_00: And if you need to watch it a second time, and if you're willing to do that and then make some adjustments and really adjust your mindset and how you see this, if you see this as positive, if you see this as an opportunity to grow, you're gonna grow like a frickin' weed.
28:08
SPEAKER_00: You're going to grow faster than ever before because so many agents are not willing to.
28:14
SPEAKER_00: It's mind-boggling to watch.
28:16
SPEAKER_00: It's just mind-boggling to watch.
28:18
SPEAKER_00: It's pathetic, but it is what it is, right?
28:20
SPEAKER_00: Not everyone can be a brainiac.
28:23
SPEAKER_00: You know, not everyone can be a mental giant.
28:25
SPEAKER_00: There's a not everyone's meant to be a real estate agent.
28:29
SPEAKER_00: And it and as things get more quote unquote complicated through change, doesn't mean that it is complicated, but things get more complicated through changes and adjustments.
28:41
SPEAKER_00: Those unwilling to roll with the flow, to go with the flow and roll with the punches, they're gonna leave the industry, right?
28:48
SPEAKER_00: You have to stay ahead of the curve and put in the work.
28:52
SPEAKER_00: If you do that, you're going to thrive bigger and better than ever before.
28:56
SPEAKER_00: I guarantee it.
28:57
SPEAKER_00: And if you're not in a position with a great support system, get your ass into a great support system.
29:05
SPEAKER_00: Right?
29:06
SPEAKER_00: If you want to talk about working together, if you want to become a business partner of mine, if you want to work with Real Broker, go to partnerwithdustin.com and we'll talk it through.
29:14
SPEAKER_00: We'll give you details.
29:15
SPEAKER_00: You could know nothing about it, you could know a bunch about it, but if you just want to start the conversation of what that looks like, partnerwithdustin.com.
29:22
SPEAKER_00: Thank you so much for listening, guys.
29:23
SPEAKER_00: Share this episode with someone who needs to hear it because I'm tired of all the misinformation.
29:28
SPEAKER_00: I'm tired of the misunderstanding.
29:30
SPEAKER_00: I'm tired of agents being pessimistic about this and thinking that somehow you're no longer able to get paid as a buyer's agent.
29:37
SPEAKER_00: What what is that?
29:38
SPEAKER_00: Stupid.
29:40
SPEAKER_00: It's stupid.
29:41
SPEAKER_00: Thank you for listening.
29:42
SPEAKER_00: See you guys next week.