Build client confidence by being prepared, knowledgeable, and proactive.

There are a lot of questions surrounding the recent legal developments affecting real estate, specifically the lawsuit and settlement concerning NAR, the National Association of Realtors. As real estate professionals, we should be ready and knowledgeable to discuss this topic with our clients and fellow real estate professionals because these developments have significant implications for our business, trade, and the pricing of real estate commissions.

Understanding client concerns

It is natural for clients to voice their concerns about things that they are not fully familiar with, and we are starting to see a lot of our clients bring this subject up. One common concern is whether sellers are still obligated to pay the buyer’s agent commission, often citing listing agreements. Answering this question is not as straightforward.

What we can do as professionals is stick to the facts, provide accurate information, highlight potential risks, and outline the gains related to various actions. For example, a client with limited information who is unaware of the facts may consider removing the buyer’s agent commission entirely, assuming they can circumvent it due to the settlement. However, such a decision may have unforeseen consequences for their bottom line.

“Stick to the facts, provide accurate information, highlight potential risks, and outline the gains related to various actions.”

Preparing for industry changes

Come July, changes will take effect in the MLS system, and sellers will no longer be able to advertise buyer’s agent commissions. This means that real estate professionals must sign buyer representation agreements before showing homes. These changes will alter the real estate industry, particularly on the buyer side of transactions.

To prepare for these upcoming changes and mitigate their impact, we need to prepare our business proactively. Be familiar with buyer representation agreements and clarify commission structures with clients. By being transparent about commission expectations, we can minimize misunderstandings and disruptions to our business operations.

The bottom line is that it pays to stay informed and take proactive steps when dealing with industry shifts. By being prepared, we can gain the confidence of our clients, engage in meaningful conversations with them, and serve as a trusted resource in the real estate market.

If you have questions or want to have further discussion on this topic, feel free to reach out. You can call us or send us an email, and we’ll be happy to assist you.