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...

Okay, guys, here's an important question regarding this NAR settlement and everything around it:

We are going to have to start having buyer representation agreements. In that agreement, it's going to say how much you're going to get paid, right? You’ve established what you charge sellers a long time ago, but now you've got to do it with buyers.

What's going to be your minimum commission standard with a buyer?

First of all, accept the fact that you have value and that you are worth more than some other agents in your community. So, you're not going to base your number on what another real estate agent is doing. Maybe they're brand new or barely active.

Instead, you need to base your numbers on the services you provide and your experience.

But here's a bad tendency with a lot of agents: They're going to undershoot their value.

They may say, "I don't want to be greedy, so I'll come in lower."

But don't go too low. There's still going to be sellers offering buyer agent...

We’re facing a dilemma here:

With the impending changes in buyer representation, there's talk about some agents taking zero BAC listings—charging a fee but listing it as zero.

Now, think about it: Buyers looking at these listings may opt to go unrepresented, thinking they can handle it all. So, as a listing agent, taking these listings, the question arises:

What do you do when an unrepresented buyer wants you to facilitate the sale without the BAC?

Considering the surge of unrepresented buyers, it's time to discuss this with sellers. You may still charge your standard listing fee but need to charge a bit more for dealing with an unrepresented buyer.

Why?

Because you're essentially doing double the work for potentially half the pay.

You're handling everything from financing and inspections to appraisals and negotiations.

You've got to communicate this to sellers. Due to changes in the market, unrepresented buyers...

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...