Welcome back to America’s #1 Daily Podcast, featuring America’s #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? Visit: https://whylibertas.com/harris or text Tim directly at 512-758-0206.
IMPORTANT: Join #1 Real Estate Coaches Tim and Julie Harris’s Premier Coaching now for FREE. Included is a DAILY Coaching Session with a HARRIS Certified Coach. Proven and tested lead generation, systems, and scripts designed for this market. Instant FREE Access Now: YES, Enroll Me NOW In Premier Coaching https://premiercoaching.com
How are you handling the Commission $hift? Is commission even shifting, or is it just how you practice real estate that’s changed?
How are you doing with these changes? Are you hanging in there, freaking out, or proceeding with confidence?
In light of recent changes to commission-sharing policies, which went into effect on August 17, 2024, we’ve been monitoring the confusion in the marketplace after the first whole weekend of sales activity.
Agents fall into several categories so far:
–Educated, motivated, and entirely in action, operating ‘business as usual’.
or
–Confused, needing more direction and leadership, resulting in either in-action or proceeding incorrectly. (This is the case with agents trying to force open house buyers to sign a Buyer Agency Contract before entering the home).
Most agents are somewhere between confident and confused. We’ll help you fix that today and tomorrow. Most importantly, we will show you how to simplify all of this using some standard, simple practices that will alleviate stress for both you and your buyer clients!
Our job is to educate you, motivate you, and get you into action in this new environment. We want you all to be in the first category so you can have your best quarter ever. Remember that knowledge = confidence, and ignorance = fear. That’s why the following two podcasts will focus on clarifying best and correct practices based on fact, not guesswork.
The following points provide clear and concise direction based on the latest guidelines from the National Association of REALTORS® (NAR). These clarifications will help you navigate the new landscape and ensure compliance with the updated policies.
HUGE Announcement: You will love this! Looking for the full outline from today’s presentation? Our DAILY Newsletter featured lead generation systems, real estate scripts, daily success plans and (YES) the notes or today’s show. Best part? The newsletter is free! https://harrisrealestatedaily.com/
1. Is Buyer Agency As We Know It Dead?
- Myth: You now have to work for free on the buyer side.
- Fact: No, buyer brokers will continue to be compensated, though using an MLS to communicate compensation offers will no longer be an option.
- Compensation Methods:
-
- Fixed-fee commission paid directly by consumers.
-
- Concession from the seller.
-
- A portion of the listing broker’s compensation.
- Negotiation: Compensation will remain negotiable and should always be negotiated between agents and the consumers they represent.
REAL ESTATE LEADS, LEADS and more LEADS: Question: What is Tim and Julie Harris’s favorite PROBATE LEAD PROVIDER? Simple, alltheleads.com/harris
2. Reliance on Offers of Compensation Pre-Policy Change:
- Existing Contracts: If a sales contract is executed before the MLS policy change, the buyer broker can rely on the offer of compensation, even if the closing occurs after the policy change.
3. MLS Compensation Information:
- Prohibition: The new MLS policies prohibit any information about compensation on an MLS.
- IDX or VOW Feeds: MLS Participants can augment MLS data with offers of compensation to buyer brokers or representatives, but only for listings of their own brokerage.
4. MLS Listings and Broker Contact Information:
- Permitted Links: MLSs may provide links to a listing broker’s contact information, such as telephone numbers or preferred communication methods.
- Prohibitions: These links cannot be used to circumvent the prohibition on making offers of compensation on an MLS or disclosing broker compensation.
- This means you could be in violation if you link to a voicemail, text, or website that states compensation. The best message to post, text, send or link to would state: Sellers of my listings will consider concessions. Then instruct buyers agents how to submit their offers.
5. NAR’s Policy on Steering Buyers Based on Compensation:
- Prohibition: Steering buyers based on broker compensation is prohibited under NAR’s Code of Ethics.
- Obligations of REALTORS®:
-
- REALTORS® must prioritize their client’s best interests over their own.
-
- They must be honest and truthful in real estate communications and not misrepresent or conceal facts, including those about broker commissions.
-
- Violating this could breach both the Code of Ethics and potentially the broker’s fiduciary duties to their client.
Ready to become an EXPIRED Listing Agent? As promised, here is the discount link for the EXPIRED LISTING LEADS: https://www.redx.com/affiliate/tim-and-julie-harris/
6. NAR’s Settlement on Steering and Compensation:
- Commitment: NAR reaffirms that MLS Participants must not limit listings based on broker compensation.
- Written Agreements: Required agreements will outline that brokers may not receive compensation exceeding the agreed amount in the agreement with the buyer, eliminating any incentive to steer buyers toward higher compensation listings.
BEST PRACTICE:
-Meet with all buyer prospects in person. (At your office, meet for coffee, or via Zoom)
Present your Buyer Presentation, which explains the buying process, how you work, what they can respect from you and you from them, how buyer representation works, and what your unique guarantees are.
Obtain the buyer’s signature on the Buyer Representation agreement. Note: If they’re not ready for this yet, use a one-time showing agreement FIRST, get to know each other, and then circle back for the Buyer Rep Agreement.
-After prequalifying your buyer client, show 100% of homes that meet THEIR REQUIREMENTS, not the compensation offered. Avoid steering.
-Ask for your fee in concessions. The listing agent will provide a seller’s net sheet based on ALL of the factors of your offer and the seller will decide based on the facts.
Our BUYER PRESENTATION handles all of the above for you!
