As the Brokers of Rabell Realty Group, we want to address the Proposed NAR Settlement. This is for past and future Buyers, Sellers, Customers and Clients and other Realtors. We did get some of this from Heather Cook Of Real so want to credit where credit is due.
Buyers & Sellers: Stop believing in the attention-grabbing, alarmist news reports from any media outlet
photo of Lincoln saying you can't believe everything you read on the internet
Realtors: (please see above)
The media is like that obnoxious youngest sibling the parents "accidentally" birthed 10 years later that will do ANYTHING for attention, and they will be onto the next Kardashian or Trump/Biden mishap next week.
You can’t always rely on the news as a source of truth. But you can rely on your Real Estate Professional who is in this business 24-7 to give you 100% truth. We live it. We know it. We are unabashedly transparent about it.
We are here to share our Cliff Notes version after reading the PROPOSED Settlement offer from NAR to the DOJ.
Disclaimer: We are not attorneys. We weren't around during Watergate. We were kids in the 80s. We started real estate in '06 and survived the Short Sale period. We love quoting Glengarry Glen Ross. We live and breathe Real Estate.
meme from Glengarry Glen Ross --Coffee is for Closers
We are here to dispel some untruths fed by the media's desire to keep you afraid, dumb you down, and turn you in their Sheepole.
If you turn off the news - this isn't actually that wild.
Buyers and Sellers:
Working with an agent is still going to get you to the same destination-- THE AMERICAN DREAM. The changes just bring a slightly different route.
Buyers AND Sellers will need to sign a contract with your agent regarding your commission. This is already a normal practice in some states like North and South Carolina, but will become commonplace in every state.
That part is pretty simple to understand.
The bigger confusion is compensation.
Let us break it down - here is what the NAR Settlement Offer says, along with some rumor displacement:
1. Cooperation Compensation -- AKA Co-Op to buyer's agent -- will no longer be required to be offered on the MLS.
✅ TRUE: Sellers can still offer compensation to buyer agents
❌ FALSE: Buyers agents can no longer be compensated
✅ TRUE: Sellers can still offer compensation to the listing agent representing them and representing the buyer
❌ FALSE: Listing agents won't be paid if the buyer goes directly to them
2. MLS does not allow Co-Op (buyer agent) compensation
✅ True: There are plenty of other ways to market compensation to buyer agents and buyers will still be able to make offers on your homes with their buyer agents.
❌ FALSE: Sellers can not give Buyers Agents compensation
3. The requires the MLS to remove any fields that pertain to Broker to Broker compensation fields
This is like deja-vu. Rinse repeat. See above
✅ True: There are plenty of other ways to market compensation to buyer agents and buyers will still be able to make offers on your homes with their buyer agents.
❌ FALSE: Sellers can not give Buyers Agents compensation
4. Offering co-op commission to be published on brokerage websites is ALLOWED.
Just not in the MLS. See!! I told you it was going to be ok. 🩵
5. Sellers need to sign a co-op broker compensation form in advance.
✅ Truth: this is no different than we have treated FSBO’s and off-market properties for as long as I’ve been in real estate (and it wasn’t new THEN). It’s an article of transparency. And, SEE, we have always already been transparent. This new settlement is actually less transparent.
6. Realtors are required to enter into a written buyer agreement with buyer BEFORE touring any home showing compensation that is obvious and stated.
✅ True: Buyers will be asked to sign an agreement by ANY Realtor before being able to see any home.
❌ FALSE: You will not be able to view any homes in person.
✅ True: You will know if you are paying your Buyer agent or not. Your Buyer agent will guide you through this with their agreement and when they are showing you the homes.
❌ FALSE: You will always be forced to pay the Buyer agent you hired.
✅ True: Buyer and Seller agent commissions are negotiable.
✅ True: Buyer and Seller agent commissions HAVE ALWAYS BEEN negotiable.
✅ True: There has NEVER BEEN a set standard for Realtor Commissions
✅ True: Consumers HAVE ALWAYS BEEN ABLE TO negotiate commissions.
✅ True: Buyer Agent Commission HAS NEVER BEEN FREE for Buyers.
❌ FALSE: Sellers will lower prices now.
Let's be REAL. Sellers are not going to suddenly slash prices with the new ways commission is paid. Some may out of spite just so a local businessperson (Realtor) does not get paid-- but good luck buying that person's house! The Realtor is probably not the only one getting the short end of the stick.
❌ FALSE: Realtor services will be cheaper.
More Reality: You will get what you paid for. There always was and always will be discount agents. If you want the discount, you will get it when you choose that option. If you want the full luxury service, you will get it when you chose that option. Research the option you want. Research the Realtor you want. You will get the service you want.
Agents/ Realtors
1. Your job isn’t going to disappear unless you let it.
Take this opportunity to sharpen your buyer and listing presentations and be the BEST representative your clients have ever seen.
2. Get better at your job. And then DO your job.
Be a figure of authority. Become a subject matter expert in Real Estate. Educate your clients with truth and transparency - always.
3. Know your worth and market it!
Get your name out there. Show them what you know, what you have done for others, and what you will do for them. This is not the time to be a silent agent. This is a time to rejoice in your profession. Be proud of what you do for homebuyers, sellers, renters, property owners, developers, investors, your community.
4. Diversify your income streams.
Think bigger than today. Become business-minded and view things as an entrepreneur would - give yourself financial freedom and future peace of mind by securing “back-up” revenue sources.
Above all - and this applies to buyers, sellers and agents - live and act with grace and kindness.
If you’re curious about things you can do to start running your real estate business like an entrepreneur - to provide financial stability and peace-of-mind - DM us, call us, text us. Don't be a stranger. WE ARE ALL IN THIS TOGETHER.
Things aren’t any scarier than you give them permission to be.
Take control of the narrative of your life.