Commission Conversation

Splits and Caps Daily: Action for Agents

September 23, 2024

📈 Market Move:

What’s the Verdict on your Value?

Alright, agents, heads up. The National Association of Realtors (NAR) just told buyers to negotiate your compensation. Yep, they’re encouraging clients to have the money talk, and guess who’s on the other side of that table? You.

Here’s what it means for you:

1. Everything's Up for Negotiation
   Buyers now know they can haggle over your services, your fees, and the terms of your agreement. Be ready to explain your value clearly and confidently because buyers are walking in knowing they’ve got options.

2. Goodbye, Open-Ended Deals
   No more “we’ll see what the seller offers” or fuzzy ranges on commissions. The NAR guide explicitly tells buyers to ask for concrete terms upfront. This means you’ll need to lock in specifics from the get-go. Clear communication just became your best friend.

3. Buyers Can Ask Sellers to Pay
   Here’s a potential win: NAR is telling buyers to ask sellers to cover your fees. This could take some negotiation pressure off of you, but you’ll need to frame it properly. Prep your buyers for these conversations and work it into your strategy.

4. Flexibility Is Key
   Exit strategies are more important than ever. Buyers know they can walk away from an agreement anytime they want, which means you need to be adaptable. If a buyer’s not vibing with the initial terms, negotiate and be willing to tweak the agreement within reason.

5. Prove Your Worth
   This is where agents who provide top-tier service will shine. If you’re confident about the value you bring, now’s the time to show it. With compensation being a hot topic, your ability to outline what you offer—and how it benefits your clients—will make or break deals.

The bottom line: NAR just gave buyers more power to negotiate, which means you’ll need to be ready for the conversation. Agents who can communicate value and navigate negotiations will thrive in this new landscape. Time to sharpen those skills!

🌟Quote of the Day:

"The best way to predict the future is to create it." – Peter Drucker

📊🤔 Agent Poll Results

On 9/20, we asked: How do you feel about being forced to pay dues to national, state, and local real estate associations?

The results are in!

Option 1: .05%
Option 2: 42%
Option 3: 52.5%

Top comment: “I HAVE BEEN A realtor FOR 16 YEARS. During this time I have paid these dues with very little seen what NAR has done for us that are out here working 7 days per week. After all the noise they have produced and not even thinking about how this whole mess would play out with the members I feel like I have been thrown under the buss. I no longer feel I should have to be a member of the NAR organization . I myself do more for representing me and my broker than they ever have. Being tied to the party that brought in and failed to honestly prepare for the outcome shows me very poor representation.”

🎉 Fun Fact of the Day: 

Double Sunset, Anyone? Fun fact: if you’re at the Burj Khalifa, you can catch the sunset twice—once from the ground and then again from the top. It’s basically a two-for-one deal on nature’s best light show.

📚 Book Recommendation:

“The 4-Hour Workweek” by Tim Ferriss: Look, if you’re tired of the 24/7 grind and want to reclaim your time, this book’s for you. Ferriss flips the script on the hustle culture and shows how to build systems that let you work less while making more. Imagine cutting your workload and still raking in commissions—that’s the dream, right?

Check out our Agent Bookshelf for previous recommendations and Agent Resources for other ways to improve your business!

That’s it for today! Stay sharp, keep hustling, and remember—big wins come from the small, daily moves. Let’s get out there and make magic happen.

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