In our recent podcast episode of “Estate of Mind,” hosts Tami Simms and Jack Miller were joined by special guest Stephen Mosher from RE/MAX Executive in Charlotte, North Carolina, to talk about the recent changes in the real estate industry and how to navigate them.
Adapting to Industry Shifts
This lawsuit has led many to reconsider their business operations, especially after August. Consumer awareness has increased, and they now seek direct information from real estate professionals. This will significantly impact buyers, and agents need to establish or reinforce their use of buyer agency agreements. Being transparent and acting as industry leaders and professionals will help educate consumers and navigate these upcoming changes.
Stephen Mosher’s Perspective
Stephen Mosher explained that every year, his team schedules their annual business planning in the fall to hit the ground running in the new calendar year. However, this year, they have encountered significant industry shifts mid-year. One of the hot topics is the impending NAR commission settlement, expected to alter how realtors work with buyers and handle professional fees. It’s crucial for agents to plan how to implement these new business practices and become industry leaders for their consumers, who look to them more than ever to understand and explain these changes.
Jack Miller’s Perspective
Jack Miller highlighted the need for buyer agency to ensure that buyers understand the fiduciary responsibility of realtors to represent their interests, not the seller’s. Today, the focus has shifted to how real estate professionals get paid, which is a significant change. Embracing and clearly communicating this change is essential because it’s mandated by the Department of Justice.
Engaging with Clients
Both Jack and Stephen emphasized the importance of outreach to discuss these changes with clients. Jack has taken this opportunity to reach out to his sphere of influence, noting that everyone is curious, not just current clients, but everyone in their network. This topic is prevalent in major media, making it an excellent chance to connect with their sphere and engage their client base.
Stephen adds that this is a great opportunity to educate and stand out as true real estate professionals. In North Carolina, where he has always practiced buyer agency, he is now discussing it more openly. By understanding the questions out there, he can explain these new practices to new buyers during consultations, being as transparent as possible from the start. Covering the upcoming changes and their impact on both buyers and sellers helps set proper expectations and articulate well to consumers, differentiating real estate professionals from others in the industry.
Adjusting Strategies
Stephen discussed the importance of leveraging value in all conversations. Both buyers and sellers need to understand the need for expert guidance, which is why they seek to work with a real estate professional. Clients, whether buyers or sellers, have full-time jobs and are professionals in their fields – they understand the need for real estate professionals to be paid. Their job is to navigate the intricate and complex process of real estate transactions from start to finish, and often beyond the closing day, representing a significant value.
Builders also recognize and appreciate this value. Even in new construction, a skilled realtor provides immense benefits, helping to guide the buyer, seller, or builder smoothly to the closing table.
While people sometimes perceive the relationship between agents and other parties as adversarial, more often, real estate professionals work together to find common ground and ensure a successful closing. As of now and for the foreseeable future, it is essential to ensure there’s a growing recognition of the value of professional buyer representation.
We encourage you to listen to the full podcast to gain more insights, understand how to manage change from the NAR agreement, and learn how to communicate effectively to stay ahead of the curve.
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