The NAR settlement, which will happen in mid-July (but you’ll start seeing this already): You're going to see a rise of unrepresented buyers.

These will be buyers knocking on your door as a listing agent and saying they’re unrepresented and that they want to make an offer on your listing.

Are you going to, as the listing agent, treat them the same as if they're represented? Or are you going to treat them differently?

Well, I just saw a top agent that did an internal study with his team and found…

70% of the deals that came from unrepresented buyers in his market failed.

So think about that, and I believe that to be true because they just don't have somebody walking them through the process. When you’re sitting with your seller, you need to have an unrepresented buyer conversation going forward. And here's what that conversation might look like:
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“Mr. And Mrs. Seller, there's been some changes with the way that we're selling real estate based on an...

What's going to be your approach in having conversations with buyers about this idea of writing you a check or potentially writing you a check at closing? It feels scary, doesn't it?

I'm going to give you a script focused around what I call a success fee. Just remember, we're never paid in general. The vast majority of us get paid at closing and only if the buyer's successful.

So my starting point will be:

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“Hey guys, I just want to point out that today we work under a buyer representation agreement… You don't pay me until you found the perfect house, got it at the right price, financing sorted, inspections done, deal closed. That's when I get paid. If I don't help you get to the finish line, I don't get paid a dime. My fee for representation, if you get to the finish line, is X. In many cases, we negotiate with the seller to have all or part of that fee paid on your behalf.

It's going to be super transparent. I’ll give you a net sheet on each transaction,...

So the NAR settlement, what does it mean to you? What should you do today as an agent?

First of all, what does it mean to us?

Here are three big things it means:

1. Buyer comp is not going to show up in the MLS as of mid-July. If this is approved, it probably will be.

2. You're going to have to sign with your buyer a buyer representation agreement, which says how much you're going to get paid.

3. It's going to outline the fees that are going to be paid to you by the buyer. Now, that doesn't mean that the seller can't pay. This is the biggest misconception of this. Just because the fee is not going to show up in MLS doesn't mean sellers won't still agree to pay it. This is something specifically that was in the NAR proposal.

I'll read it to you:

The NAR said the proposal would allow sellers and their listing agents to continue offering compensation for buyer broker services. That's clear. It's just not going to show up in MLS.

So let's think about that now. How are you going to get...

I've got a hypothetical scenario for you:

Imagine a buyer walks in and says, "I want to buy this specific house. We've found it online and want to pay you directly. Convince me why your fee, whether it's 2%, 2.5%, 3%, or whatever you charge, is worth it. What value do you offer beyond finding the house?”

Remember, they've already found it. This is crucial for buyer representation. Let me share some ideas about this, drawn from my experience teaching the Accredited Buyer's Representation (ABR) class for NAR for a decade:

Let me guide you through building value. When working with buyers, start using this language: “You know, finding a house is surprisingly straightforward. My real work begins once we've found the house.”

It's crucial to show that the house hunt isn't the challenge; anyone can do that.

Then continue:

“But what I do is special. Here's what I do: First, I conduct thorough research on the house. I...