Episode 302: NAR Settlement Update & Elevating Your Presentation Skills for Success
In this essential episode, we dive in and give you an update on the NAR Settlement, which is reshaping the real estate landscape. 📈 Learn what these critical changes mean for you, including the new requirement for MLS participants to secure a written agreement with buyers before property showings 📝 and the significant shift in compensation offers on the Multiple Listing Service.
But that's not all – we're also sharing invaluable strategies to boost your presentation game, whether you're working with sellers or buyers. 🌟 Discover how to build trust from the first interaction, demonstrate your unparalleled value through a compelling pre-presentation packet, and set clear expectations to ensure a smooth process. From initial consultations via phone or Zoom to the final agreement signing, we've got you covered with expert tips and tactics to elevate your success. 📊 Tune in now and transform your approach to presentations in the ever-evolving real estate market!
Ready to Get Started Today? Click HERE
Let's Get Up-To-Date
NAR Settlement - FAQ
https://www.nar.realtor/the-facts/nar-settlement-faqs
https://www.nar.realtor/competition-in-real-estate
As of August 17, 2024… NAR Settlement states:
- MLS Participants working with buyers must enter into a written agreement with those buyers before showing properties… AND
- Prohibits and offers of compensation on a Multiple Listing Service
DOJ unknowns?
Housing Wire - July 12, 2024
The U.S. Circuit Court of Appeals in Washington, D.C., on Friday denied the National Association of Realtors (NAR) a request to rehear the court’s previous ruling that the Department of Justice (DOJ) can reopen an investigation into the trade organization.
The legal debate over the DOJ reopening its investigation has been bouncing through courts dating back to the Trump administration. In November 2020, the DOJ agreed to close its investigation into NAR after reaching a settlement agreement on the antitrust investigation into NAR’s role in buyer agent compensation.
But in July 2021, the DOJ withdrew the settlement and reopened the investigation. After legal objections from NAR, a three-judge panel in D.C. ruled in April 2024 that the DOJ could reopen its investigation. NAR petitioned for a rehearing in May, but was officially shot down as of Friday.
Working with Sellers & Buyers
- Build Trust ~ Initial Phone / Zoom Consultation
- Show Your Value ~ Pre-Presentation Packet Sent via Email with Video
- Set Expectations ~ Buyer or Seller Presentation, Review Paperwork & Sign Agreement
BUILD TRUST (Initial Contact - Call)
- Contact info
- Timeframe & Motivation
- Where are they in the process now?
- Wants and needs
- Schedule an appointment to meet
SHOW VALUE (Pre-Presentation Email)
- Confirmation of appointment details (date, time, location
- Watch these videos
- Steps in Buying a Las Vegas Home
- What are Buyer Closing Costs When Buying a Las Vegas Home
- Buyer Agent Compensation - Ways we are paid
- Download your home buyer’s guide
- Review Our Buyer Presentation
SET EXPECTATIONS (Consultation In person or via Zoom)
Agenda
- Confirmation - of info gathered from initial contact - dig into the details
- Home Buying Process - overview of key steps
- Market Update - what’s currently happening on our market - what you need to know
- Why Hire Us - Recent sales examples, testimonials, our services, our professional team
- Agreement - review the paperwork and sign the agreement to work together
UPDATING YOUR SELLER PRESENTATION
New Listing Agreement - what is different in your state?
NV - we only negotiate listing side commission
COMPENSATION/COMMISSIONS ARE NOT SET BY LAW OR BY ANY REALTOR® ASSOCIATION. THEY ARE FULLY NEGOTIABLE.
This commission is exclusively for the Listing Broker's services and is not subject to sharing, splitting, or otherwise distributing to any Buyer's Broker or agent. The Seller acknowledges that any commission arrangement with a Buyer's Broker, if applicable, must be covered by a separate agreement/Residential Purchase Agreement and is not covered under this Listing Agreement.
DUAL AGENCY? Check Your Local/State Policies!
Can you represent both the buyer and the seller?
How will this be disclosed?
Negotiating commission from seller and/or buyer?
What forms are required in your state/brokerage?
OFFER COMMISSION SERVICE LEVELS
MUST DISCUSS
- Market conditions
- Concessions - closing costs
- Buyer's agent compensation - how this can be paid
- Be prepared for buyer agent commission to be in the contract
- Negotiation tactics and the bottom line net to seller
FOCUS ON SELLER'S GOALS
- Best Net, Terms
- Quickest Sale
- Be a NET SHEET Expert!
UPDATING YOUR BUYER PRESENTATION
Decide on your commission % - What are you worth?
Buyer Brokerage Representation Agreement is now required
Las Vegas MLS version….
- Timeframe
- General area, city, to specific properties
- Commission amount as % or flat fee (can not receive any amount higher than what you negotiate with buyer)
- Collect from Seller Clause
COLLECTING BROKER’S FEE FROM THE SELLER. Buyer may choose to negotiate that the Broker Fee be paid, in whole or in part, by the seller as a credit to Buyer at closing and/or by the seller directly to Broker at closing. At Buyer’s instruction,Broker will include either or both of these in Buyer’s offer to purchase a property, and Broker will help Buyer negotiate these with a seller. Broker will not retain any amount from any source that exceeds the amount agreed above.
Ways you can be compensated
- Seller pays - Include it as a term in the Purchase Agreement
BUYER REPRESENTATIVE/BUYER BROKER COMPENSATION: At the close of escrow or the exchange of the subject property, Seller shall pay the Buyer’s Representative/Buyer’s Broker (“Buyer’s Representative/Buyer’s Broker”) ________% of the gross sales price of the property or $________.
- The buyer pays difference between what the seller is willing to pay and what you negotiated with the buyer
- Buyer pays all commission
Will Fannie, Freddie, FHA, VA make changes to allow buyers to finance buyer agent compensation?
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