3/21/24

Happy Friday, Friends. 

Last week, a landmark federal court decision was made that will absolutely impact the way we do business. Since then, we’ve been bombarded with speculations, accusations, and hypothetical solutions from the media, in our social channels, and from our colleagues in the industry. It’s important for agents to understand that we don’t have answers yet, as uncomfortable as that might feel.  We know the WHY and the WHAT of this situation, and it’s yet to be determined the HOW. So please focus on what you can control. Quite a few agents that I currently and formerly coached  have reached out to me for thoughts or guidance, and I’m quite honestly in the information-gathering stage of this news, as you should be too. I promised I would speak to it today for you, however, so here are my thoughts. 

1. We’ve been here before.

Our industry experiences shifts and changes as any industry will naturally do. I remember the panic that ensued when Clear Cooperation came out a few years ago, challenging all of us (including myself) to conduct our business differently. Before that we had Radon Disclosure, Lead Paint Disclosure, Buyer Agency, and more. 

When the rules for Clear Cooperation were outlined to the public, most of us were up in arms about the impracticability of not being able to advertise our off-market properties. These ‘pocket listings’ were our bread and butter, securing unrepresented buyers all over town. Many of us panicked and protested, and it wasn’t until the WHY was outlined that it made sense and we calmed down. The WHY behind Clear Cooperation was heavier and more important than me being able to fish out a new Buyer every now and again. The WHY served a significant purpose that focused on the greater good, and once we had a clearer understanding of the WHY did we calm down and move forward. It took about three weeks for us to get used to the new practice and we’ve never looked back. 

2. Our industry isn’t going extinct.

Understanding WHY the verdict came about and WHY the way we conduct business is fundamentally what we need to focus on. People will always need advocacy when buying or selling real estate. They will always need a human being who is well-versed in the laws, processes, and nuance in the transfer of real property. This is happening to protect the general public. This is a matter of disclosure. THIS IS DISCLOSURE. If you aren’t fully versed in the laws and rules regarding Agency and disclosure, tune that up now. RIGHT NOW. 

3. We can still have control of our business. 

Don’t hide under a rock. Your Sphere needs you to educate them. The New York Times published, in my opinion, a blasphemous article about how the 6% commission will be extinct. We trust that source to be objective and accurate, and I assume most people do too. It’s up to us to stand up and educate our friends, family, and colleges about why this verdict happened and what it’s going to look like in July. Here’s what we know:

• The lawsuit came about because consumers were concerned about the allocation of funds and the lack of transparency regarding real estate commissions. The verdict happened because the consumer needs more protection. As real estate professionals, we owe our consumers certain transparencies and disclosure. We must always look out for their best interest. The upcoming changes will only enhance those practices.
• The way commissions are distributed and disclosed will be changing, and business otherwise will remain as it had been. 
• The sky is not falling. We’ll have new documents and disclosures, and fortunately for those of us in MN and WI, a lot of what this ruling offered is something we’ve always had in place. For decades we’ve been disclosing agency and representation as well as the disbursement of commissions. The biggest change we’ll see here in these midwest states will be the advertisement in the MLS regarding the Buyer Broker commission paid out by the Listing Broker.

4. This is an OPPORTUNITY.

Many agents will run for the hills because they are making the erroneous assumption that our industry is going extinct. Don’t be one of those agents. Tune up your value proposition. If you aren’t 110% confident in your 60-second elevator pitch, work on that now. Before you do anything else, have a clear delivery for your value you provide, the steps you take to assist home sellers and buyers, and what makes you different from the other real estate professionals. Stand out. Be the leader.

While I’m sure a lot of this is uncomfortable, especially for many of us who might be newer to this industry and who might not have already experienced a shift in the way we do business. Please take it from someone who has seen this kind of change before- it’s not the end of the world or the end of how we do business. 

So. Hold your head high, educate your people, and get intimately familiar with what makes you the best option for all of your potential clients. 

We’re in this together and it’s going to blow over eventually, probably sooner than you expect.  Keep going. We’re going to be okay.

Yours in Success,

Coach Lins