Recognizing When It’s Time to Stop
Several years ago, I had quite a few conferences in one month and the travel costs were really adding up. We had just gone to one credit card for our company and one for personal, doing our best to “pay as you go” instead of incurring credit card debt at over 20 percent per year.
After searching multiple travel sites until 1:30 a.m. in the morning, I couldn’t find a flight that worked within my budget and finally called it quits. 
The next morning, I decided to bite the bullet on the airfare costs and went back online to reserve my room. When I clicked on the pay button for my stay, a message appeared: “Sorry, we’re sold out.” Not only was the room block sold out, the hotel was sold out as well.
I called the hotel and asked what was in walking distance. They gave me names of two nearby hotels. I went to Priceline and found a package deal that saved me over $500 for that trip.
So, here’s an important takeaway. When you find yourself in a situation where nothing seems to be working, stop and take a step back from the problem. Sometimes there’s a reason you’re being stopped.
Rather than trying to force yourself deeper into the corner, turn around and walk away. There is probably a much better option once you are willing to look elsewhere.
The One Step You Need to Take Today to Survive NAR’s New Commission Rules in July
Regardless of what happens going forward with the lawsuits at this time, the NAR owned MLSs will stop displaying a buyer’s commission fee sometime in late July. Furthermore, NAR’s new rules will require you to have a signed buyer
brokerage agreement to show a listing through NAR MLSs.
Due to these changes, experts are now saying 40 percent of all agents will be forced out of the business.
While it’s critical that you master the new conversations for today’s post commission lawsuit environment, it’s even more important that you strengthen your overall lead generation and conversion skills.
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Spring Cleaning Time
The first quarter of 2024 is history and it’s an excellent time for you to review your production numbers. Are you hitting your goals? Is your income on track with your expectations? If not, get out in the nice weather and hold regular and
twilight open houses, connect with potential leads at sporting events by wearing your company attire, or even try some door knocking. The basics still work.
Also, it’s a great time to do a little house cleaning in your business. Get rid of anything that’s not working in your business or is taking too much time with too little return.
It’s also time to clear out those buyers who won’t buy and those unrealistic sellers won’t lower their price—fire them or refer them to another agent. Getting rid of them creates space for new, more motivated clients to come into your business.
You won’t believe how good you’ll feel if you do.
The Time to Take Action Is Now
The commission lawsuits have plunged the entire residential real estate industry into total chaos. Agents are in denial about what’s coming, but with NAR’s settlement agreement, in July of 2024, most MLSs in the country will no longer have a field for a buyer’s commission.
Complicating matters even more, if you’re relying on paid leads from one of the portals or major lead generation companies, those pipelines are also going to be turned off in July because they can only distribute leads from those sellers who have given written consent to receive that lead. 
In other words, they can only refer the lead to one agent where the seller has given their consent, unless the seller agrees to have multiple agents contact them but still must have their names. (See RealClues February 26, 2024, edition.)
If you haven’t taken broker brokerage agreement training, do so now. As I stated in the article, it is going to be highly likely that only agents who have signed buyer broker agreements will be allowed to show the property.
Second, brush up on your negotiation strategies. The changes do not prohibit you from asking for a commission in your buyer’s office, a credit, mortgage rate buy-down—there are hundreds of ways to still put deals together on the buyer’s side—you just need to be able to show your value, be creative, and stay on top of your overcoming objections scripts.
The Pain of Changing Course
One of the most difficult decisions agents and brokers must make is determining what changes to implement in your business. For example, when you buy a new computer or get a new mobile device, you’re forced into dealing with all the changes in the new operating systems plus the additional hassle of having to set everything up. This in turn disrupts your current systems as it takes extra time to learn the new system. Frustration and anger are common, especially when you liked the old system better than the one your provider just forced you to use.
NAR’s decision to settle the Spitzer and Moerhl means that the entire industry will be confronted by the most significant change we have ever experienced. Let’s face it—we’re facing chaos, whether we like it or not.
Nevertheless, with chaos there is opportunity. Those who are willing to adapt to these changes now can dramatically increase their market share from those who refuse to change.
I once heard someone describe a detour as “a temporary inconvenience” for a long-term improvement. The next time you hesitate about trying something new, ask yourself about the benefits of making the change. As a rule of thumb, the sooner you make necessary smaller changes, the less big and painful changes you will experience. Also, positive changes usually result in more efficiency and less hassle in the long run, just like the aggravating detour.
I certainly hope this is the case with this change in buyer compensation, but this detour is going to be a very rocky road for the entire industry.