Turning a Threat Into an Advantage: The NAR Lawsuit
The verdict from the lawsuit against the National Association of Realtors (NAR) where they were found to have “conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law” sent shockwaves through the real estate industry and Americans looking to buy a home. Since the verdict came out in November, several other lawsuits based on a similar claim have been filed and realtors have faced countless questions from clients.
The environment is ripe for concern – what will the future hold for realtors? For some, they’re taking a step back to see how things play out. But for exceptional realtors – or those aiming to become exceptional – this threatening environment is seen as an opportunity to refine their messaging and ensure they are providing true value to their clients.
Any seasoned realtor knows that this industry is one of highs and lows, and how you react to the challenges is what establishes your value. Your clients – existing or new – are like all people when they are making a buying decision – they want to get a high-quality product at a good price and with great service. Are you able to do this for your clients? Do you demonstrate processes and systems coupled with a great relationship with each client?
If you’re not showing enough value, are you ready to make a change? At this crossroads, will you jump on the negativity bandwagon, or will you do what’s necessary to be seen in a different light by the consumers, positioning yourself as the expert people want to work with?
In our industry, there’s just a thin line that separates the average realtor from the exceptional realtor. One of the characteristics that makes a real difference is accountability. The exceptional realtor sees a problem, owns it, and solves it by embracing the activities necessary to eliminate the problem. They have a strong sense of integrity and keep the commitments they make to improvement.
Moving Forward
To be successful in the new year and beyond, make sure you’re focusing on your skills, not just activity. Thriving in a skills-based market includes being sure that your clients understand you know what’s going on in the market and have the ability to put them in a position to make their best decision, whether they are buying or selling.
If you are asked about the lawsuit and commissions, answer honestly and openly. Make sure that your clients understand that all fees in a real estate transaction are negotiable and that they understand how commissions traditionally work. And don’t steer a client to a property just because it is a low/lower commission option. Guide them to the properties that meet their needs.
If you’re comfortable with it, develop a buyer representation agreement that specifically defines all commission details. In fact, communication – both written and verbal – is more important now than ever. Be transparent in every aspect of your work with your clients. Make sure they understand the value you bring to every step of the process. And encourage them to ask questions in any area where they have concerns.
The Class Action Advantage System
As you position yourself to get ahead of the curve as the current legal events unfold, leverage our free Class Action Advantage System which provides you with the latest information on the commissions lawsuit. Learn to tell the difference between fact and fiction, and know exactly how to respond to both your buyer and seller prospects.
As you move forward in your goal to become an exceptional realtor, be sure you’ve created a culture of productivity for yourself and your team. Intentionally ensuring your culture is one that focuses on productivity will lead to higher outcome performance. Focus on that which gives you the greatest return on time spent. And, yes, you may be doing more and doing it with greater intensity, but the results will be amazing. With this intentionality, it will be crystal clear what activities you have to focus on to achieve your goals, even in the most challenging real estate market.
