As we prepare for the significant post-NAR settlement changes to the real estate industry, what is most important is getting proactive. The upcoming shift will re-shape how Realtors operate and earn commissions, but with the right preparation and mindset we can turn these changes into opportunities.
Here are 10 actionable tips to help you navigate the new landscape:
Now more than ever, you need to clearly articulate your worth to clients.
Create a comprehensive list of the unique services you offer, your past successes, your industry connections (inspections, home repairs, mortgage brokers, etc.), your home expertise in identifying the pros and cons of any given property, and the specific ways you save clients time, money, and stress. This is basically a resume tailored for agents!
Practice presenting this information concisely and confidently. And it's always a great idea to use data to back up your experience and expertise.
Buyers are confused and they do not understand how this is going to impact them. Often, when agents are speaking to sellers we're presenting market trends, new listings, comps, etc. — do the same with your buyers!
Develop a structured buyer strategy session, as well as buyer materials to educate clients about the current market, your services, the buyer agreement requirements, and how commission works. Use the strategy session to explain that they will need to sign a buyer agreement before you show them any houses*, and how you'll work to negotiate on their behalf, including potential seller concessions to cover your fee.
*Buyer agreements are not required at open houses.
Before the NAR settlement shift, it was possible to be just a buyer's agent. But in order to maximize your earnings, you may want to consider putting equal efforts on attracting buyer and seller clients.
Fello is all about helping agents transform into a listing-based business. Focusing on listings is more time effective (~14 hours to close on a house vs. ~3 hours to list a house) and commission is typically higher for seller's agents*. The Fello platform (as well as our Academy, webinars, etc.) is entirely about helping agents uncover seller leads, secure more listings, and create a listing-based business. The platform's tools help turn old buyer leads into seller leads, and engage, nurture, and market to new organically-sourced contacts. Book a demo to see all the tools.
*For CEO Ryan Young's team, The Young Team, commissions were between 42% and 79% higher for seller vs. buyer agents, from 2021 to 2023.
From go, be upfront about your fee structure. Talk about this at the beginning of your convos and strategy sessions — don't wait till you're at the showing.
Explain that there are typically three ways to cover your fee: the buyer pays, the seller pays, or a combination of both. Use analogies to help explain this, like a doctor's visit where insurance might cover part of the cost. This will help clients understand how this new fee landscape works and they are probably used to how medical insurance payments work.
Tools like buyer net sheets and comparative market analyses can show prospective clients the tangible benefits of working with you.
✅ Show how you can save them money.
✅ Show examples of your past successful negotiations.
✅ Find them off-market properties.
Focus on marketing strategies that showcase your expertise — and how you're communicating that expertise. Show your contacts value and who you are!
Some ides to help with this are:
The scripts are changing! Develop and practice scripts for common scenarios, such as explaining your fee structure or addressing objections. Role-play with colleagues or friends until your delivery and response is second nature. Download our free playbook with scripts to address and overcome any homeowner's objections — including fees.
We hate to break it to you, but you can't ignore your way around the commission changes. Study the new rules and forms provided by your brokerage, MLS, or local association. Make sure you understand how to properly implement these changes in your practice to avoid potential legal issues. The NAR has provided some good resources on this.
In this new landscape, your reputation will be more important than ever. Are you the agent that negotiated XYZ? Answered all the buyer's questions and helped them navigate the inspections, rates, financing? Called them back within a few hours? Truly worked on their behalf?
Prioritize delivering exceptional service to your buyers and maintaining positive relationships with other agents in your market.
Think about how you can differentiate yourself. Could you position yourself as an Inventory Specialist who excels at finding off-market properties? A Negotiation Expert? A Perfect Home Guide? Specialization can help justify your value in a more competitive environment — as well as bring attention to what you do best.
Change often brings opportunity for those who are prepared for it. These tips and strategies can help you position yourself to thrive in an evolving real estate industry. At the end of the day (August 17), stay positive, be proactive, and focus on delivering exceptional value to your clients. Your ability to adapt and excel in this new era will set you apart from the competition.
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If you're a Fello customer and you're looking for ways to get more from Fello and find more clients, reach out to your Customer Success Manager or email success@hifello.com.
If you're not a Fello customer (yet 😀) there's plenty of actionable tips here to start working on, and if you really want to supercharge your business, book a demo.