While we don’t know the full impact of the National Association of Realtors® settlement and the NAR policy changes, which are effective as of August 17, an interesting wrinkle could help agents across the U.S. prepare for the future.
Before the NAR settlement was announced, a few states already required real estate agents to have written agreements with clients. As a result, agents in those states have had some time to adapt to the new status quo.
To help agents everywhere else get acclimated to similar industry changes, we spoke to Hao Dang, broker and team lead of Hao Dang Team based in Bellevue, WA, and Treasure Davis, sales partner and realtor for Treasure Davis Team based in Colorado Springs, CO. Here’s their perspective on how to talk to buyers about the NAR settlement, ways to communicate your value, and more.
Are clients aware of the new real estate policies?
Dang and Davis both noticed that many buyers seem generally aware of some changes to the industry. However, even if buyers saw news headlines about the NAR settlement back in the spring, they typically don’t know the nuances of the settlement.
When the topic comes up, Davis, who has been an agent for almost 20 years, likes to start conversations with a simple question: “What have you heard?”
“We want to gauge where they’re at, and we don’t want to make people scared about something they don’t need to be scared about,” she said. “I think the important thing for everybody to know is that commissions have always been negotiable. That’s never changed.”
Has your approach changed?
The new policies in Washington gave Dang a chance to refine the way he presents his services and explains his compensation to potential clients. He recommends other agents use this time as an opportunity to review their pitch and identify any new areas they can bring value.
For Dang, whose team has closed over 130 sales in the last 12 months, that value comes from explaining what’s going on in the market, focusing on key considerations like how old the roof is, and introducing the buyer to different contractors, lenders, and inspectors as soon as possible. It also means going over the basic contract — whether that’s a non-exclusive touring agreement or an exclusive agency agreement — to be transparent and inspire confidence.
“We’re educating clients right away and throughout the entire process,” he said. “We’re providing a lot of value upfront.”
How do you communicate your value to clients?
Commissions were a big emphasis as people started to dissect the NAR agreement. However, Davis thinks narrowly focusing attention on the commission could prevent buyers from asking about more important concerns.
Agents may be able to guide the conversation by addressing questions like: Who’s going to negotiate the best deal? Who has the experience you’re looking for? Who do you trust? It all connects back to the topic of communicating value.
“When people have options, they hear the pros and cons, feel educated, and have time to talk to each other, they feel empowered and informed.” Davis said. “That’s when they move forward with confidence.”
What role has Zillow played in helping you adjust to the changes?
Getting buyers to sign an agreement before the first tour opens up logistical challenges for agents who need an easy way to share documents with potential clients they may not have met before. Given that 84% of all buyers used Zillow Group sites during their homebuying journey, digital tools can help agents solve some of these challenges, like automating the process for sending a Touring Agreement* and receiving a buyer’s signature.
Technology has also made it easier for Dang to introduce himself to a client before they’re locked in with a competitor. He believes transparency in the Zillow product has been critical for his team because they’re able to see right away that a lead isn’t working with another agent.
Davis agreed, saying, “I probably rely on Zillow’s data now more than ever.”
*The Touring Agreement is available in select states. If you have questions or concerns about the specific requirements in your state or any particular transaction, please consult your broker, legal counsel, or state regulator.
Have there been other notable trends?
Dang received more questions from buyers about the NAR settlement earlier in the year, but doesn’t hear much about it anymore.
“There’s been so much talk about it. I think everyone’s aware of the situation,” he said. “Nothing has really changed in my area.” For agents in other states, they may experience a similar wave of questions early on that fades after a few months.
Davis, meanwhile, believes the shift to more transparent compensation could eventually lead to increased competition among agents. “This is your chance to work on what differentiates you from the other agents in your market.”
Jordan Teicher
Aug 16, 2024
https://www.zillow.com/agent-resources/blog/agent-advice-nar-settlement/?utm_content=zpar_agtb_learn_their_tactics_herobutton&utm_campaign=emm_b-panewsletter_1_081824_1_pro&utm_source=sd&utm_medium=email
