KGCI: Real Estate on Air - Here's the Truth Behind the NAR Lawsuit That Might Get Passed

Episode Date: May 3, 2024

What is going on and welcome to the Real and Raw show. I am your host, John Marone. Thank you so much for tuning into today's episode. If you haven't done so already, please take a second to like, subscribe, and write a review. This show is based around everything, real life, real estate, and real tools for real change. So if you're ready to go ahead and have some real change in your life,

get your pen and paper, and let's get real and raw. What is going on? Welcome back to another episode of The Real and Raw show. I got a treat for you guys today. Today is a treat. Today is something that I'm going to give to you for absolutely free. And that is one of our coaching calls from last week. Now, this coaching call went in depth about the NAR lawsuits and the NAR settlement.

Now, I know you've probably heard different takes on this and different points of view. But I want you to tune in and listen to this. And the reason is because, you know, we coach about 100 plus people. And one of our clients, I multiple, but the one that is going to be on this show that you're going to listen to from the real estate master coaching call also owns a lending company. So we helped him grow from 100 transactions a year to 300, 350 transactions. And he started a lending side as well. So he's going to break down some things on the lending side. It's going to help you as the agent understand what's really happening.

I'm going to break down exactly what it means for you and how it's not as much of an obstacle as you think it's going to be and it's more of an opportunity. Now, I will say when I first read this about the lawsuit, I was a little thrown back on how this is all going to unfold, what this really means, what are we going to need to do? And so when you listen to this episode of our Real Estate Master Coaching Call, you're going to find out the truth behind what is being said and also how to operate business when and if this whole lawsuit goes through. Now secondly, I do wanna put out there

that if you are somebody that is in need of some guidance, whether you run the team or you're an agent on someone else's team. And you really need the understanding on how to massively create better relationships to go ahead and close more deal, especially if things start to change. And obviously the commission starts to get chopped up differently.

and or if you need some help overcoming self-sabotage or limited beliefs or the fear that's holding you back, maybe you need more structure in your life and in your business so you get to be more productive, so you can have more balanced so you can go ahead and be more effective and more efficient in every step and every way of your day, then I'm going to suggest you come aboard our coaching and I'm going to give you a free call with myself. So it's going to be me and I am going to have a conversation with you about your business and see how our coaching, if it's a good fit, can help you grow the areas of weakness, help you feel the gap from where you're at to where you want to go. So if you're somebody that's like, okay, I need to do this and realizing that it's less

than one transaction for our coaching. Here again, we will show you how to double your business and it's going to cost you less than one transaction. That's it. It's absolutely insane. The low amount of investment for the high amount of value, right? So if you're somebody, it's like,

okay, I need this, or you need us to coach your team for those exact things that I talked about, what you're going to want to do is one of two things. Go to my Instagram, and it's at Real John Marone, and it's M-A-R-R-O-N-E.

And I want you to DM me the word, call and I'll send you a link and we're going to book a 20 minute call about your business about what your needs are and how we could possibly be a fit. Okay, if you're not on Instagram, which we could talk about as well, okay, I simply want you to go to go real estate mastery.com go real estate mastery.com and then click the drop down and you'll see something that says apply. from there you're going to fill out some information and then you're going to book a call. So one of two ways to get this free call and to hear more about how we could help you evolve as a human being,

help you elevate as a real estate agent and help you put this all together to dominate no matter where you're at in your business and in your life. Go to at real John Morone on Instagram. Hit me up and say call and I'll send you the link or go to www.gorealestatemastery.com. And then click apply and fill it out from there. If you have any questions, reach out. Otherwise, super excited for you guys to listen to this call. This is from our real estate mastery coaching call with our amazing clients last week, giving you deep insight on what this lawsuit and a settlement really means and how to operate in it.

Enjoy. All right, guys, let's stop this year. Today is a state of a union type of call. So make sure you guys get your butts on camera. I want to go ahead and first start off with some wins that we had this past week. So I'm going to go ahead and share this screen here. So people who drop the wins in, thank you so much as always. We'd love to go ahead and celebrate you guys and make sure I have my right screen up here.

There we go. And boom. So the wins that we had this week just want to celebrate once again, you guys who posted in our Slack group as always. So we had Catherine who had our first buyer agreement signed. and she's setting boundaries, right? So we talked about last week's call on how to properly set up boundaries to create a more fruitful, more peaceful life. Carra went ahead and got her first buyer side closing of the year. Awesome job. Also had three great leads from sync. Good job, dude. Christina went ahead and she finished her first hour of circle prospecting. One appointment set.

Let me tell you very quickly. So Christina went ahead and she sent a one-on-one call with me last week. and the whole one-on-long call was based on, please help me get better at these Circle Prospecting scripts, right? The first time she ever did it. So her first round of calling Circle Prospect, which are those of you that don't understand what that is, it's basically you pull a bunch of numbers from a neighborhood and you pick up the phone and you try to convince them to go ahead

and either sell with you or at least get a CMA, right? So one hour of it, one appointment set. Great job, Christina. Aaron went ahead and put into escrow of a follow call, 590K also saved the client he's crushing it over there Daniel had a great week of business but also had a positive change in his approach and our man X he sent a gift this is beautiful right sent a gift to former clients right for Ramadan the very next day they sent him a referral for over 500k so look with a little bit of empathy a little bit of care a little bit of showing up right

when people least expect it we'll do for you so he got a 500,000 dollar referral all for going ahead and sending something to a previous client. We've done calls on how to accelerate your past client referrals, how to go ahead and get back into their awareness. Make sure you guys go back because this is exactly what X did. So awesome job, guys. Give it up for everybody that went ahead and dropped some wins in this past week. We are on spring break here at the Moran household.

And so yesterday we went to the aquarium. We went to the beach. We did a few other fun things. And then this week we got a bunch of stuff going. But I didn't want to miss today's call because I'm not sure if you guys heard, but there was a lawsuit that happened. Did you guys hear about that? There's a lawsuit.

Yeah. Right? So I want to talk about it because that is what we need to be focusing on today. We could have gone over anything else today. But I think that it's just important for us to really understand what is happening, the truth behind it. Also answer any questions you have. And also, this is a group to get creative.

Right. Have you already created some processes, right, or some systems? that will help you get creative during this change. And what I will tell you is that change scares people, but it should excite this group. When there is change, you have two types of people, those that get excited and adapt to know that other people won't or those get scared and fall back.

So will you get excited and adapt or get scared and fall back? Because the change, good chance is coming, right? And we don't know to what level because there's still a lot of uncertainty. But that's the first way I want to start is realize that there is greatness upon change because many people will not adapt. Many people will not get the right coaching. Many people will not tap into the right skill set. Many people will be scared and are running the other way and they're doing it right now. And I'll start by saying this.

If you haven't increased your calls this past week, you are absolutely missing a huge opportunity. Because most people in your market are scared. Therefore, they're slowing their call volume down, which gives you a bigger opportunity to get in front of the people that they may be calling as well. So if people put their foot on the break, what do we do? We put it on the gas, right, with the right intention, the right skill set, and absolutely the right plan. So I'm going to show you guys some slides really quick here. Just to break down some understanding of really what's happening here. And once again, any questions you guys have, let us know.

We will be having our man, Josh Rump, who has a whole division of his company that is on the lender side, bringing him on talking about some lender stuff as well. So you guys are properly prepared. Okay. Let me pop this up here. Hold on, hold on. There we go. You guys could all see this, right?

Good. Thumbs up, thumbs up. Cool. So the first thing is, once again, the news, right, has failed us. Once again, the news channels, right, in these publications, the CNN, right, constant negative news, right, have once again failed us. Why? Because it is speaking absolute lies to the consumer. The 6% commission of buying and selling is gone. No, it's not. That's not what that means, right? All these headlines. And we all know when someone reads the headline,

do you think they read the majority of the rest of the stuff? Hell no. Right. They go ahead. They read a little bit. They get scared. They go into fear mode and boom. And so a lot of these headlines, right, are creating, once again, fear into our consumer. and really uncertain, hey, what should I do if I am looking to buy or sell? But the 6% commission is not gone. It's not. You buyer agents out there are still going to get paid if you do it properly. This actually helps you.

Real quick, in the chat, who here is tired of running people around town, right? Offer them to go to another agent, right? Offer them to leave you. It did us a favor. Right? Like it's allowing us now to say, damn, I know John has talked about the briar broker agreement, but I never actually did it. Now it's going to be more than likely mandatory. Okay. But the other disclaimer is this, nothing is set in stone yet. Right. Nothing is set in stone yet. There's still a few months here that can go by that things can change because it has to get approved. Right. It has to get fairly approved. So whether it stays exactly how they stated, whether something changes, right, We don't know, but we need to be ahead of this, right? And also look at it, maybe not now, but will this come down later in the future? Right.

So here's some of the key elements, right, and aspects of this, right? Sellers are now not required to make an offer, right, of compensation to the buyer's agent. No longer will this happen. Now, I am curious, is this going to be backdated, right? So let's say it goes through in July and all of a sudden I had a listing in June. Do I all of a sudden have to change that listing in July if it gets changed? that's something to be seen, right? I don't know, but one thing I know is I cannot control the uncontrollable,

and that is right now the uncontrollable. So let's get our focus away from that stuff. Okay. Number two is agents can no longer put an offer of compensation for the buyer's agent MLS. Right? They're no longer coupling that. So if you go into your, your MLS, right?

Once again, state still has approved all this other stuff too. But there's a good chance that there's no longer what it says you are going to get paid as if you're a buyer's agent. Right. And also agents are required to enter into written representation. representation, which is exactly what I've been telling you guys, get the buyer broker agreement, right? Get to buyer before touring anything, right?

Before showing anything. And just like how we would say, hey, by the way, I can't show you homes unless I get a pre-qualify letter. Hey, I can't show you homes unless I get proof of funds. It's the same exact way. Hey, our process is this. Now it's like, hey, legally I can't. Isn't it feel better now that you can say legally I cannot do this? I mean, that's way more.

Now you have a lot of a leg to stand on now. it's just not like how you feel. This is the actual truth if this comes to, you know, settlement in July. Okay, here's some other aspects. Sellers are not required to make an offer, right? So let's talk about this. So this is, the sellers can offer compensation via MLS methods, right? They can offer it, right?

But it's different ways. So we're going to see how the state chopped us up. Okay, commissions not set by law are negotiable. That's always been true. So a lot of this right here about the sellers are not required to make an offer. That, to be honest with you, it's always been true. we just worked a way around it. Okay.

Number two is agents can no longer put an offer of compensation for the MLS, right? Talks about this. Okay. Listing agents can still offer compensation, right? And it says that you can still put it on your listing page. So you can have your own listing page and have it on or just can't be on an MLS. Right? So I create a listing, right?

Now all of a sudden, let's say we want to get away from the MLS because I think their dues are going to go up because there's going to be a huge lawsuit. There's a whole other story, right, that they have to pay back. So who are they going to do? They're going to charge us more, right? NAR is going to charge us more, right? MLS is going to charge us more, right? Your brokerages are probably going to charge you more, right?

That's a whole other call. But that's not for the future. The good thing is, is we should be creating landing pages, right? As of right now, my understanding is we can't put it in MLS. How about we put it onto a landing page, though? Right? So now we're separating ourselves with our own landing page where you can go ahead and you could create a form there to collect information, right, and have it on there.

So there are ways possibly around it where you don't have to continue to getting called by every agent, buyer, he's the compensation, right? Hey, what's the compensation? Now, here's the big piece here. Okay. Agents are required to enter into the agreement. This is an absolute must because here's the big thing. Let's say I'm working with Sky. Okay.

and I tell Sky, I want, you know, to get paid 2%. Okay? But then she puts an offer on a home that the seller has agreed to give 3%. How much does John Morone get paid now? Two. Two percent. I'll say it again. If I'm working with Sky, we sign an agreement, she's going to pay me 2%.

But yet the seller is going to pay me 3%. I don't get what the seller says. I get what the buyer broke. agreement says. So now I think there might be a loophole. I don't know. This is something that I've just, once again, I'm trying to think outside the box when it comes down to. How about up to 3%? Right? And up to 3% and then you can do a split. Right. So up to 3%, hey, if they pay 2%, you only got to pay 1%. Right. Once again, this is this is just all thinking about how we can get creative. But an up to 3% may help. Right. Hey, by the way, if they pay, you know, 2%,

you just got to make up to 1%. Fair enough. Fair enough. So to me, that's how I think we should go about it. But once again, we don't know that the nitty gritty in these laws, but just start get these wheel spinning of creativity, right? Because right now, nothing's changed. Right now nothing has changed, okay?

But going to the future, I want to have our foot on the gas, but I know what to do. Right. So they might forbid all buyer commission sharing, right? So we don't know. Mortgage brokers, they're going to need to adapt, which we got my man here that he's going to be talking about it, right? And if brokers give a commission, it might decrease.

So there's a lot of things in the broker side of things and the mortgage side of things that I just wanted to bring this on. There might be future changes if this suit continues to follow as we think. Okay. But why will this not materialize into changing your role? So if you're a buyer's agent, this is not going to change your role. Because it is stats that Americans don't tackle. It's crazy, right?

Now you may think, no, that's not true. but if you look at the statistics, the seller commission is still a 5.6%. I get 6% every single time. Do you guys? And if not, do you go in at five? Do you go in and trying to, what we say, drop in your pants and saying,

oh, I'm going against this listing, I know that there are five, I got to go five. No, right? So Redfin, anybody remember Redfin, right? Everybody knows a Redfin, right? Still 1% of homes sold, even out of third of the price. Listen to that stat.

So this is from the original discount broker, right? I'll just redo this part here. Okay. I've now become convinced through bitter experience that people need someone to talk to before they make an offer. People will pay for the service. Redfin CEO. This is what the Redfin CEO had said. So there may be some people on here right now that are scared that you may be obsolete.

Oh my gosh. I'm not sure if I'm going to be in real estate. if this thing goes, no, people, there is no AI agent out there that can build a relationship like you can, right? So if you're doing the right things and you're increasing your skill set, which we'll talk about here in a minute, I promise you guys, people will still pay for that. But if you're not articulating your value, they're not going to pay for it. Right. What's the phrase we always say, right? Value on articulated is value unappreciated, right? If you can't articulate your value, they're not going to pay.

pay you. You guys that had been coached me for a while, right? If I was able to articulate my value and what we could help you with, you would have never get in ahead and paid us. Never would have to happen. So we have to understand that the value at the way that we speak to our clients, right, in our scripting, in our dialogue, is the best in the business and it's only going to get more, more enhanced on why we have the best scripts in a business. Because we dig into the why. We truly add value. Now, when we add value, here's something I want to ask you. When we add value, when we truly dig into the Y, now when we bring up a buyer broker agreement

that they got to go ahead and give us up to 3%, right, and split whatever it is, let's say the seller doesn't pay, do you think there's a higher chance of them doing that or a lower chance if we use our scripts and our dialogues and our framework? Drop into Tchia. Is it higher or lower using ARPs, digging into the Y, truly understanding their pain and their pleasure, truly being able to articulate, hey, we have the solution for you. Higher. Absolutely higher.

Now, if you go the other route and you want to go to the old school route, you want to go the LP mama route, you want to go just the Applebee server route, saying how many bedrooms, how many bath, and you think that's going to help you when it comes down to saying, hey, up to 3%. They're like, hell no, because 86% of homebuyers, they don't think their agent understands the problem. So if 86% of homebuyers don't think that, when you ask for money and you didn't, go ahead and you didn't articulate the value, what's the answer going to be? Oh, hell no. Nope, absolutely not. People will pay for service, but they'll pay for service for someone they like, they know the biggest part as they trust. How do they trust you? Not how much you know, right, but how much you can go ahead and fill the gap of problem. Problem solution. I have the tools to help

fill that gap. That's where you come in. That's where the scripting comes in. The two big things we must focus on right now is amplify the amount of dials you're making amplify it there is a lower number of dials be making making a right now industry i'm telling you right now people are scared shitless truth it took me a few days to sit back and really think about this lawsuit it did i remember i got it i'm going to play golf on friday and i got the message i was like oh fuck right like really way to damper my 18 holes. I'm about to play here. Played pretty well, by the way,

part on the first one. So the rest of it was okay. But I'm like, man, I need to take some time to think about that before I bring this up to the group because I want to make sure that, A, we have a solution, B, we know what the hell we're talking about and see if you provide true knowledge,

not just on Follofi go on YouTube and hear a guy talk and really doesn't give you any solutions. So here's the truth. Here's the facts. Here's the bullshit that people are saying on the Internet. But here's how you go ahead and you make sure you're the best.

And even if this lawsuit doesn't come through, if you amplify your dials, if you go ahead and you set up doing one day a week role play, you do five days a week role play, will you make more or less money? Curious, drop in a chat. If you just say, I'm going to go ahead, I'm making more dials because I know people aren't,

I'm going to be the best, the best person on the phones I could possibly be. Make way more. So it's a win-win for you. Because if this thing goes through in July, and all of a sudden, now people want to go ahead and master their skills,

set, you'd be way ahead of their game. Right? You're going to be four months of practicing five days a week, three months, whatever it is of practicing five days a week. It's going to take a while for them to catch up to you. That is a guarantee. And when they try to, you're only increasing it, right? You're only dialing more. So I'm going to bring Josh in here in a second, but does anybody have any questions right now with what we just went over? I wanted to kind of go over this quick. I don't want to talk about what the news said too much because I promise you it's not true. But here's the other thing. If you have a lot of buyers that are kicking tires right now, you know they want to do it,

but you don't know. Like, get in touch with them now. Create some urgency. Create some urgency. Right? Don't have to deal with that. And the other part of this is people think that home prices are going to go down. Anybody hear that?

People are talking that home prices are going to go down. This is what the news is saying. It is absolute. There's not, that's not what's happened. There's not what's happened. But if you watch CNN, you watch all these things, they literally tell you, six percent commission is going. House prices are going to go down.

Bullshit and bullshit. It's just, it's not what's happening, guys. So what's that going to do? Right. So what's it? Oh, I'm going to wait. I'm a buyer. I'm going to wait until his house prices go down.

So now we've got to articulate that what they're watching is they're giving them false information. Are they going to believe that if they don't think that you understand their problem if you don't add value if they don't trust you? No. So don't come out the gate if we are talking to somebody and they say, you know what, I just saw this on CNN. They said that house price are going to go down and I should probably wait until July to buy. That is what you may be hearing soon. And I want to help you guys overcome that objection because there is a very good chance. Tell me if you guys agree, drop a yes into the chat, that you are going to hear consumers to say, I think I should wait until July. So I don't have to pay your commission.

Right. So they don't even know what they're talking about because they're only reading headlines. Okay. So you're already hearing it. I love it, Jamie. We are going to equip you on how to overcome that. Right. And here's the best part. Look, you can use the same exact thing we use for interest rates. Same exact thing we use for market crashing. I say, look, I heard this. Look, I get it. There's a lot of things out there. Let's just put, you know, buying in July or not buying in July. Or not buying in July to decide for a second. What did I just start looking in the first place? Right?

Adding the value. Hey, by the way, I know you worried about the thing that's happened in July. Now they trust you. Now they know you. Now they understand that you could fill the void from problem to solution. Now you could speak to them that way. Please do not be the agent that tries to convince them of something differently that they saw on the news before you add value.

Say that one more time. Don't be the agent that tries to convince somebody. something they saw on the news before they trust you. It's not going to be a battle you win. Okay. Any questions? You can raise your hands or drop it to the chat. Any questions?

And then Josh, I'm going to bring you on here. Oh, wait, I got one coming. Get you on muted, girl. What up, what is up? You're on muted, Catherine. How are you doing, girl? Hi, John. I have a question about the commission in the Vajer side.

do you say we only can receive the compensation that the badger agreed with the agent. Correct. That's what they're saying. They're saying it's whatever you and a buyer broker agreement says, right? That is what it can go up to. But mind you, if the listing agent says 1%, you have 2%, there's got to be a boy, right? So what I'm trying to say is there's two facets. One is if you and I went to an agreement and you said 2% as my agent and I was like, okay, we'll sign 2%.

Okay. The problem, the issue is... But the list of people says three, then it's 2%. A listing agent says one, right? Then you got to make up that gap. Okay. The issue is that, for example, I'm working with new construction and pre-construction. And usually builder gives more a commission than the 3%.

For example, in Miami, up 10% it depends on the development. But I was talking with my clients and I say to them, they only have to pay for me 3% if the builder don't offer any commission. But if the builder offer more, I can't choose more commission.

I don't know if I have to use any letter. special language in the contract. What do you think about that? So I'm almost possible. I'm hearing you're saying if you say 3%, but your builder says 4%, you get the 3%. Okay.

Yeah. That's as of right now, right? That's as of right now that if the builder says 4%, Josh, you could jump in here because you might have something on that side of it, right, that you may know.

But for my understanding, if the builder or the listing agent, let's just say, says 4%. And your buyer broker agreement says 3%, you get the 3%. Am I correct on that, Josh? I'll meet yourself, brother.

All right. There's going to be 75 different ways to skin a cat, right? So here's the, all right, and I want to preface this by saying, I spent four and a half hours reading every single line of this son of a bitch, right? I've read it all, every bit of it. So, and the problems, the things that I got to that I couldn't interpret, I had help, very good help interpreting, right? So a lot of what that we're dealing with, because I really needed to understand this on the mortgage side, very, very well, right?

Because we deal in a low, low volume market where this is going to be something that is going to affect the way the business is doing, right? So I'm going to kind of jump around a little bit to say all this. All right. When you get into this, it specifically states that the MLS cannot advertiser. a buyer's commission, right? This is what everybody kind of sees the same thing. So on the MLS, the MLS cannot advertise that they're going to pay a buyer's commission, which is on every MLS right now, right?

What it can offer is seller allowed concessions. Seller allowed concessions can be anything that the seller's heart desires. It can be closing costs. It can be buyers agent commission. It can be a bonus. It can be a fucking Lambo. It can be virtually about anything that they want it to be. The only thing that this says is that the seller, like the MLS cannot advertise that they're paying a buyer's commission.

That's it. They can still offer concessions. This little box is going to change. So what everything is going to gravitate to is if the seller is offering 3% in concessions that the buyer can use. buyer wants to use it, where do you think that's going to be applied to, right? It's going to be applied to the buyer's commission because that's going to be the new way that business is done. I mean, there's not going to be much of a different way around that. If you're dealing in a VA loan, an FHA loan, a USDA loan, you know, what you're also going to see is right now that there's a

maximum amount of sellers concessions that can be allotted, 6%. So there's a magical number in that. there that's about $200,000. So anything north of $200,000, you start to deal with such astronomical numbers that it really doesn't make any difference. At $200,000, most closing costs on a FHA loan at $200,000 is about $6,000. The average real estate commission on $200,000 is $6,000. Now all of a sudden, you've got enough room in the 6% that can be conceded by the seller to pay the closing cost, and the buyer's commission, right? That's what you're going to see more frequently than anything, is it just going to be a reevaluation of allocated how the money is.

So for us, the reason that we kind of do things the way that we do it is two things. When you have a mortgage advisor consult early on in the process with somebody that is on your team, a mortgage advisor that's associated with you, then they can already know that these people are going to need closing costs paid. These people are going to need all of these things. Then your mortgage advisor, your lender goes back to your client and says, look, what we're going to need is we're going to need with the cash position that you have

and the program that you've chose, I think the best thing to do is we ask for the full 6% of what can be allocated to you so you have less money out of pocket, VA, USDA, FHA, right? the lender's going to cue you up to have the perfect conversation to say, okay, now when we get ready to formulate our offer, we know the lender said that we need to try to get all this stuff worked in. So that's how we're going to structure the offers. That sound fair? And they're going to be like, that sounds so fair. Because, I mean, the person that's giving them the money just told them what to do, right? And I think that that's one reason when we made a shift towards lender first, the whole idea with that is because as much as anybody on this called up when I hear it, let me enlighten you on something.

whoever controls the money controls the entire situation if it's the cash buyer then who has the money the buyer then they control everything if it's the lender and the lender has all of the money then kind of whatever the lender says these people pretty much just towed a line with well it's what the lo said i guess that's what we're going to have to do and that's just how that's how it works it's the golden rule right the golden rule doesn't have anything to do with do unto others as as you would want them to do unto you. The golden rule means whoever has the gold makes the rule. That's the reality. You know, that's capitalism. That's all those things at its finest. So when you have the, when you have the ability to control some of those things preempted on the front end, it changes the

dynamic of what that is, right? So all of a sudden, in a sink lead, and most of us you sing, right? We know that you're catching these people very early in the process. That's why it makes good sense to have a mortgage advisor consultation in the front end of the conversation, right? So then, because that actually the next logical step, because they hadn't made it that far yet, you know, and then like what Catherine was talking about with builders, the most intelligent, aka prurukid, aka worse to work with, aka best to work with people in the entire world, is builders, because they don't have to adhere to most of these rules, right?

Builders will manipulate things in ways that others can't. How do I know this? Because I build homes and we own a company and a piece of shit like all the rest of them on that forefront. Right. So I manipulate numbers to how it needs to work. Right. So if the builder, when they do fire sales or they want to liquidate or whatever, they'll reappropriate that as bonus. It's all it's going to be.

It's going to be bonus. Does a bonus have to be a set number or can a bonus be a percentage? It can be whatever the builder, aka seller, wants it to be. be, right? So there's going to be so many different avenue. You're going to see things that are going to that are going to completely look different, but be exactly the same. And the smart people are going to kind of figure that out. Where you're going to really get into the bugaboo is, like I said, that threshold of $200,000 with a 6% maximum allotment of sellers concessions bylaw from, you know, tread, you know, so what you're going to get to is if you're dealing in lower end homes,

unfortunately like we do, where say the, it's a $120, $130, $150,000 USDA loan. And then the buyer's concessions eat up, just about the seller's concessions eat up about all of your closing cost. Then that's where you're going to have to get very creative in the section of how do I either get the rest of this money from the seller by the seller conceding it in a different way. or how do we figure out on the back end how to add it to something that the buyer can borrow. That is something on the lending side of things that you've got people going to now. Here's a prime example. On the VA, the funding fee for a VA is added to the back end when everything is done. So the VA funding fee goes on the very back end.

If you buy a house for 150, everything taps out and you look and you're on your sixth VA loan and you're like, well, why the heck is my loan, 162,5? because they took your 12-5 VA funding fee that doubles every time you use it, and they move it to the back end of the loan. They're going to lobby for something like that. They've already started to lobby for something very similar to that on buyers' buyer's agent commission. You'll see it go on the back end of government funded loans.

Now, when you're dealing with conventionals and cash, now that stuff matters, right? Then you're in a dog fight like you've always been in a dog fight. But on the lending side, the max on conventional, it changes. It could be like nobody cares. Like it can be a zillion percent. You know, most of the time on conventional, those people don't ask for their closing costs to be paid

because they have money. So they're trying to actually finance less. You don't have a tremendous. Sometimes they'll use it for bargaining tools because they're like, well, I heard I should ask for my closing cost to be paid. But unless they're just super tied on their 20% to try to stay inside the conventional and avoid the PMI and all the great things that go with conventional,

Most of them, they don't even ask for any of that stuff because the idea is they're just trying to borrow less money. So they're like the least amount of money that I can that I can finance the better off I am. So you don't see, that's why there's no max because it really doesn't make any difference. Hey, Josh, I have a few questions. I'm going to fire your way and I know Kurt has one. Real quick in a quick two minute, I mean, we've been coaching you and obviously you come in and drop tons of value. But you've been with us for about three years. some of these people don't know who you are. I want to make sure they hear the value and kind of what you've built for your business.

Okay. Yeah, perfect. So I operate, me and my partner, Christy, we operate a real estate sales team. That is kind of where our bread and butter was. We started from she and I to now there's probably 25 of us once you incorporate the people that we have in lending. So about two to three years ago, I was at a mastermind. It was coming out of COVID. John was there. And we were in Las Vegas. And every single heavy hitter that was in that room said the same exact thing. Hey, we went into mortgage because of this.

We went in mortgage because of this. And then Christy and I sat down and we tried to identify where we were finding bottlenecks in our business. Now, keep in mind, we're doing 250 to 300 transactions a year. That's when you really start to see bottlenecks inside your business. And everything that we could identify that we were bottlenecked at, mortgage was a solution to that, right? So that's where we evolved into integrating a mortgage company in with what we had. And that's, that is the, the, the very short backstory of kind of who I am and where I'm at, you know.

And we deal in a, we deal in a, like a lot of people, in this country we deal. And our average price point is only a little over $200,000, right? So that's where we knew it was even more important to be able to add this added value to our clients. Yes, if anybody has any clients in Huntsville, any of people in Huntsville, that's where his team is. So make sure you send it his way.

So, and Kerr, I'm going to unmute you in a second. Guys, raise your hand if you have questions, especially on the lender side, because that's his forte. That's definitely not mine. But quick question. So you obviously dug into it. as much as I did. And when she was talking about, hey, if I had offered 3%, right?

And the seller says 4%, my knowledge, my understanding is that she has to go with whatever signed on the broker agreement, that's correct, right? Yes. The way you restructure that is when you make the counterback that you take the other 1% as a bonus. They can still offer bonuses. So the commission, technically the commission is going to be what the, the buyer is paying of the 3%.

The 1% is your bonus. So you just counterback with an addendum saying the 1% that's being offered will be taken as a bonus. All right. You guys hear that right? So even if it's like a 2% and they offer 3%, you could agree to that and then go back and do the 1% as a bonus on a counter on an addendum.

I love that. Another quick question. So you had to let something in there about that offer concessions. Right. In a way they have to write it is concession. I think Georgia and X, maybe you could chime in on that too. I think Georgia already has these boxes where, like, you have to fill out, you know, certain things that, like, Florida doesn't have, right?

So those sell concessions. Do you think, and, you know, obviously it's all speculation that on our MLS, we could say, instead of putting in the actual, like, part where you actually produce, offer, you know, offering 3% concessions, like just in the description. Is that something that you think that they're going to ban? Or do you think that's a way to get around this thing? that's a way to get around at 100%. And that was something that I read in there yesterday,

when they really dug in and we're talking about that, the only thing that they're going to remove on the MLS is the word commission. So, you know, even right now, I don't know how it is everywhere else, but in Alabama, the only advertised commission is what was being paid to the buyer's agent. The everybody else in the known world, no matter who you are,

if you looked at the MLS and you were, another agent or if you were a consumer or whoever, you had no idea what I was getting paid anyway, which is very rarely 3%. It's typically always more on listings. So that number is always been hidden for that specific reason. So just the word commission is really all their moving commission and adding concessions. And the seller can still concede those concessions in any way, shape form or fashion that they feel that they want to. So

yeah that's that that that's that that's that I figured there was going to be a way around it and so just going ahead. You could put it in realtor to relator remarks. You could put it in the concessions play. You could put it anywhere. And like we have individual websites for every single listing that we have. So because you will no longer be able to see what's advertised as the commission anymore. Only MLS only.

This only affects the MLS, nothing else. Everywhere else, you can put 3% plastered across the top of any ad you run, any Facebook ad you run. It only has to do simply with the MLS. I read that thing 50 times over. And he's like, where does it say it? And it only says in the MLS. So you can, like for hours, we'll probably put something in these individual websites for each site that, hey, seller is offering a 3% buyer broker. concession, you know, and you can put that right in there in that way.

Those landing pages that we talked about, you know, earlier having that. You should be using those guys on every single thing that you do anyway for a multitude of different reasons. But every single listing that we have, we geomark it. And then we geomark it with a watermark photo of the mortgage company and the Josh Rumble team. And it's geomarked on every single person on planet Earth that uses Google Maps when they drive by that, they're going to see that this was a listing that the Josh Rumble team had.

And then when they click on that because they're intrigued, is going to pull a watermark photo of the house up that has JRT and Neo both prevalent on there. So that's really inexpensive to do if you do a lot of listings. Like you take Sky that has like deals in condos and all those things kind of around where she's at. And you could, you could geomark all that stuff. And then all of a sudden, like when you're driving down the beach front and all you see is like Sky's name everywhere if you're on Google Maps, that'd be awesome. I live out in the county where none of that stuff really,

but if you do something like what Sky does, it'd be awesome. You know, so there's all kind of like creative ways to be able to get that commission out there in front of people. Yeah, guys, stop sending people to the MLS, please. Like, send them to something where they can go ahead and they have to enter, or they can enter their information for more value or more something. Yeah, I've see people all the time posts on their, on their Instagram stories, the link to the MLS.

Or Zillow. God forbid. Don't do that. What are we doing? Yeah. Just, yeah. If you want, and that's why we did the individual websites like that is so that if you wanted to share

an individual property, but maybe you didn't want to share it through sync for some reason, then you could share the individual website for that specific property out on all of your social media. It can't go anywhere else. It's kind of isolated to that. Now, embedded in that is a link back to sync. Hey, would you like to see more of our listings?

We got an embedded link that they click. and then it takes them to our sink landing page. Yeah, and so I joined and asked a good question. Then Kurt, I know you're on mute, so you'll be next, but we used to be able to put commission in proper remarks many years. That's how it was, and still not all brokerages are showing a commission on IDX websites. Her understanding is that NAR doesn't want any of that info on there. Okay, that is a fantastic, she must be like me and be, have been in this shit for a long time, right?

All right. used to on every contract also the commission was on every single contract this is not even been that long ago here probably 20 10ish maybe 20 something like that so 15 years ago well what had happened inside that was then then you had the the appraisers then weaponizing that commission to that's how undervalued they were making the properties. So as a collective group as real estate agents, they're like, oh, whoa, whoa, whoa, whoa, this shit's got to come off. We can't because then the first thing that they'd want to do is it was short by the commission on contracts. So then they'd want you to cut the commission to make it work. So like just like that, all of a sudden that was gone.

Commission was gone off of contracts because okay, well, you can't weaponize that anymore because you can't see it, right? So and then here, same thing. When we started doing all of, the all of the closing costs were on there. So then what did we do? They started weaponizing that. What we do? We took it off too. So I think that you're going to see like there's there's so many different ways around

being able to do all of these things. And John hit it so perfect too. Nothing really has changed. Commission's always been negotiable, right? Like who's going to pay that's always been negotiable? All these things have always been negotiable. None of this is there. And Jeff put the same thing.

there. Nothing is any different in that range of things. It's just where are you putting this stuff in a box, you know, is about all that's changed. And something that not very many people have hit on, and this is something that I caught yesterday when I was reading this too. And I'm trying to make this really brief. So if you are a member of NAR, the only positive thing that come from this was this is, this was NAR's entire reason for doing what they did. And then the CEO, EO of NAR come back out and reiterated this again. The reason that they have done this is they have bought Leave Us Alone money. That's what $418 million was, was leave us alone.

If this is signed to and goes into agreement, the buck stops there. There is no remax that ever has to worry, no, no Century 21, no Keller Williams, no EXP, no Reels, no John's brokerage, no teams, no agents. it stops. That class action lawsuit completely stops at NAR and will never make it down to you. What's so fantastic? That was the ploy. That's what the lawyers did. And that's what Kevin talked about as the NAR CEO. He said, if you don't offer us something, then we're going to tighten our net. And when we scoop the next time, we're picking up Remax. We're picking up Keller Williams. We're picking up EXP. We're picking all these people up now they're in. And if that don't work, we're tightening the net. And we're going to start to pick up like, individual brokerages. And then we're going to tighten the net. And he said, eventually we're going to get you all. And they're like, what do you want to get out from underneath this?

They said $418 million and they said deal. And that was his words exactly. And that's the CEO of NAR. He said the $418 million over four years was nothing but to ensure that our members are left the F alone. And it had that like in there, but had letters messed out of it. So I mean, that was something that that's the entire reasoning behind why they and ahead settled because the threat was they were coming after us.

And they're like, no, we can, we can withstand it. You know, we can, we can, we can make it through if it can be put out, you know, for four years or whatever. That's awesome. Yeah, I did not see that. That's huge because there's also a lot of things saying that it is going to trickle down. So he came out and said basically that's the shut up. That was the whole, that was the fail stop, right?

So that's, that's exactly. And here's another thing. Also, John brought up the like the CNN constant negative news. I also saw an article specifically from Ken, CEO of NAR, that because of all the misinformation that was put out about how NAR set the standard of 6%, which is untrue, they've already filed a lawsuit against the media outlets for almost half of the money that they're going to be out, which was a little over $200 million. So if they can get 200 of that from CNN and all these other places and then they cut it down

even more. And if that happens, you won't even get to see, I don't think you'll even see rates increase or any of that other kind of stuff. He'll just all go away. I love that. Awesome. So we'll keep you on because obviously we got some more questions coming in. We got our man, Kurt. Kurt, what's up, brother? Hey, how's it going? I kind of have two questions. One is, would you immediately, I think I know the answer to this, but would you immediately start signing these agreements like today? Yeah, I mean, we should be doing it before this, right? Sure. Florida is just one of those places where, you know, we don't do stuff that other people do.

Start to have it now, right? Start to have it now because if it comes into play where most people are going to struggle with the articulation of trying to get it signed, you already mastered it by then, and it's second nature. Just like when we tell people that there's a transaction fee, right? The first few are awkward. But then when you stop to do it, it's just like clockwork and you realize, So, man, it was all up here more than anything else.

And the greatest part is, man, is when people sign that, right? Like, it is such a bigger commitment to you. You don't have to worry about people running your ragged and not, you know, obviously using you and jump it to another agent. How would you, so the backup to that question before my next question is, how would you right off of the cuff, like, present that and explain it if it were you today to someone on the phone right now or in person or whatever? What would you what's I just want to hear from you what you would say.

Yeah. So ideally we want to do it at the Zoom meeting or we want to do it face to face, right? But I understand sometimes our markets, it's hard to do either of those. But try to do it on Zoom. I know Kurt, you've been kind of moving to that direction anyway for people that are obviously in town. And it's just the same thing, right?

Hey, and also another part of our process is just to make sure, hey, we're going to be completely, you know, we're going to give you everything we have, all of our resources and give you all of attention to make sure that we get you the home that matches your needs. And so we just want to make sure that you're committed as well. And by doing so, we just have an agreement that we both signed saying that we are going to be all in and have each other's back on this. Something like that. Now, Josh, I want you to jump in as well. Are you guys signing on it right now on your Yeah, we've been doing, we've been doing these for years, right? So we have what we call it a

buyer's loyalty agreement. But I mean, essentially it's just an agency agreement, right? a buyer loyalty agreement. And that's a lot of times that we go in and we have a buyer's loyalty agreement sign for three and a half percent. And already the seller's only saying that they'll concede three percent. So usually they just make a, the buyer already makes up the other half percent. So we've been doing that for years and years and years anyway. And then sometimes you have to eat that half a percent.

However, it looks great on your end, right? You're like, hey, what I'm going to do to help make this work? I'm going to concede just half a percent. you're still getting what's perceived to be full commission, right? So I think that one thing, too, in rating over this thing, like there's two or three things that people keep saying that I never could find in there, right? So inside, I've heard a lot of people say that you're going to have to have this, that your buyer's agency agreement signed before you can show a house.

Nowhere in there does it say anything about you having to have that sign before you show a house. you have to have that sign before you can present an offer them. A CIRF gets it right. So I think that where you hear these people saying that you've got to have this. And I've heard people say that it's got to be signed for every property that you show. It's got to be property specific. That's not true either, right? So the reality is if you buy a home and you buy,

you're saying that you're going to use me as your agent, that's what it is. And my fee for that is X amount of percent or flat fee or whatever it is that you want to put on that piece of paper. So I think that getting extremely familiar with what this is is your best way to combat everything that you hear. Because unfortunately what happens is you got somebody that sells two or three or four houses a year that does just like what John said. They're going to read four or five headlines. They're going to make an elaborate Facebook post about how this shouldn't be this way and that shouldn't be that way. and then you're going to have all this kind of misinformation and misguidedness out there. And then unfortunately also, you're going to have these same people that list Aunt Fran's house.

And until Aunt Fran, she ain't got to pay any of this stuff anymore. And as an agent that is unsure about what they're talking about, then they've redirected her focus towards something else to where she doesn't have to pay. And I can tell you, one last thing is I don't want a soapbox either, about it. So, you know, Jeff commented on this and so did, so did John. Is this going to make the price of houses go up or down? The market dictates the prices of homes sold, period. That is it. Nothing else dictates what the price of homes sell for except for the market. That is it. What people are willing to buy and sell things for will always determine the price of homes

or any other product or service that gets sold to. Period. That's how can, that's how consumerism works, right? So the idea that prices are going to go down because of this is a little bit disingenuous. The Fed has already said that they're going to drop the interest rate three times this calendar year. They've already put that out there into the metaverse, into the world, right? So Jeff likes my quotes. So we're already through the first quarter, and they haven't dropped them yet. It's coming. When the interest rate drops, the market will pick up as the market picks up and people want to buy and sell more because the rates are more advantageous than the prices of things are going to go up. Just like I think Jeff put that in there just plain as day earlier.

If you can borrow money cheaper, then you're going to pay more for something. So it's just like the prices of homes because of this are not going to be affected. They're not going to be. So the second part to that question, and thank you for that. that's very helpful. The second part to that question is, do you tell, is it appropriate to tell the buyer that you're signing this agreement with up front that this is something that obviously we're going to try to negotiate? You can even kind of explain how before it was coming out of this bucket or that bucket and it's just another way of thinking about it, but I don't want to guarantee them

anything either. So I guess what's the appropriate way to softball that situation and be transparent at the same time because you don't really know what situation you're getting into until you determine the house that they won. I pride myself on communicating ahead of time with everything. So I just want to make sure I'm concisely without giving too much, but also communicating to them so they have a realistic expectation about what's about to take place too. Yeah, Josh, you go ahead and hit that because I have my take on it, but you've been doing it. So it's been proven to work 300 transactions a year. So I would love for you to obviously chime in on it.

Right. And we use a lot of like John's scripting inside that when we ask for it, right? It's the same kind of when you're asking for a buyer's console, when you're asking for it, like, it's not anything to elaborate. So when you sit that, that's the difference between having a console and trying to have this thing done at the house and somebody's living room, right? So when you're, when that's, when you can have an actual console, then you have like, all these different avenues to go down. And it really makes it easy. And I hate to keep acting like I'm pitching lending back in a different way. But I'm telling you, it fixes a lot of problems, right?

Once you have had sent them to a mortgage advisor because that's the next logical step, the mortgage advisor asked for these 755 documents in your firstborn kid and all these other things that they're asking for. And then you come back to them and you say, hey, you know, what we need in order to move forward is I'd like, you know, you to just, you know, however you want to word that, right? So we word it like we have a document that that's going to ensure that we do the very best job for you. And for that, our anticipation is to get compensated. Now, a lot of times we can have that paid by the seller.

And sometimes it can. It all depends on what the situation is, you know. And then they're like, okay, yeah, I mean, you're working for me. Of course, I'm going to sign whatever. Yeah, that makes sense. What if they bring up? So what if, and I'm just trying to get really like granular here because we don't deal with this in Florida much or very often a few times I've had something like this. What if they come back and specifically say, okay, let's say the seller doesn't pay it.

Am I going to have to come out and pay you out of pocket? How would you, you know, how would you answer that? Well, you always want to defer it, right? So the thing is, well, most of the time, you know, that's something that we can get negotiated by the seller. If we can't and we get on a specific property that's a unicorn and something a little bit different, you know, then we'll have to figure out how to make that work. You know, but most of the time that's something that the seller will concede and that's something that the seller understands is going to be part of the process. Yeah, and the truth is you can move another bucket of the contractor around. Yeah, you move. Yeah, you move numbers around.

Yeah. You know, it really is counting. And that's the thing. Like, if you're financially delivered. You either can sell people to work with you or you can't to some degree. I mean, that's, yeah. And the same thing, if I'm having a, because I go to between me and Christy, we go to every listing appointment, right? And we have people all the time asking for all these different things.

What we want to do to help you get the most money for your home is we want to market to the most people possible. That means we want to get FHA loans. We want to get VA loans. We want to get U.S.DA loans. We want to get people that are buying this thing on a HELO. We want to get cash. We want to get conventional. We want to market to every way that you could possibly sell your home.

And the way to be able to do that is to make sure, and by being able to do that is what's going to garnish you the highest amount out of your home. And let me ask you a question. If you get what you want, do you really care what I get paid? And the answer to that 100% of the time is no, they do not. If I get you what you want, do you really care how much I get paid? That line has worked for me so many times in the past I couldn't even tell you. When they start talking about this, this, this and this and this and it works the same thing on the buyer's side.

If I can get you in the home that you want at the price that you want, do you really care what I get paid? No, not really. Then why are we pre-negotiating something that we think we can get taken care of on the backhand, right? And then they're like, yeah, that's right. And that's why it's so powerful guys that get the value, right? And really dig deep into the why.

Because it's like, hey, look, if we're able to really get you that home, they get you the eight hours back in your week to be able to spend more time with your kids, be honest. Like, do you really care how much we get paid? Or is getting their home to get eight, hours back in your week to be able to spend more time with your kids more important. Well, that's more important. All right.

That's why I thought. And once again, we could obviously nine times out of ten, we're getting this thing covered on the seller side. There's many ways to chop it up. And a moment that if it doesn't happen, I promise you we're going to have that discussion and find a way to make it happen so you don't miss out. Fair enough. 100%.

Yeah. One last really quick question. Like, what, if you had to choose a percentage based on your experience of like what you've been dealing with, because you've already been kind of dealing with it, right? What percentage of sellers based off of the news and all the things that are going on? Do you think we'll actually try to opt not to offer something? I mean, do you think it's going to be a lot or not really? Zero.

Yeah, I don't think it's going to be any. And it's going to be directly predicated upon who they talk to and how much education that they instill on, right? If you have discount people that come in and say X, X, X, X, X, and they fall for whatever ploy X, X, X, is, then maybe. But here's something that agent wants to sell the house too, and that's not going to help them sell the house. Yeah, and that's where you crumble. That's what you got to worry about. You got to 10%, right?

There's 10% of agents that are just saying, oh, don't worry about it. It's just the 3%. You don't have to worry about everything else. There are going to be a few of those because those are the commission breath agents that are going to do whatever it takes to get the listing. And then what's going to happen is that thing's going to probably go expire, right? Or they're going to fire, whatever case might be. Or they're going to have to concede it. Yeah, they're going to have that one bad experience, that listing agent where they're like,

shit, I did that one home like that. And all these things happened, I'm not doing it again, right? So I think we'll see a little bit of that in the beginning. But if those listing agents start to see the repercussions of them not articulating what the listing or what the seller should be doing, they're going to touch that stove. It's going to be hot. And if they come back to it, I don't think that they're going to, you know. Yeah.

Okay. Thanks, guys. I appreciate it. And kind of one more thing to integrate into that. I'm sorry, I want to make this really quick. So say the consumer, because this is what everybody's going to be thinking, the consumer says I'm going to circumvent a buyer's agent, I'm going to go straight to the listing agent. And when I'm going to do that, I'm going to eliminate being able to pay the 3% that my buyer's agent would have been paid, right?

So when they come to the listing agent in that aspect, then the listing agent presents them with the same exact thing that the buyer agent was going to present them with. right. If I'm going to represent you as your buyer's agent, I want three percent, um, no different than if I was a buyer's agent and I didn't have the listing. And they're like, no, you can take three percent or you don't get it. And then you can be like, well, perfect. Well, all I'm going to do is I'm going to represent the, the seller, which is who I'm already listing. So you just bring me a contract and you can print you something offline or do whatever you want to. Your fiduciary duties to them are non-existent. It's almost like they're buying it for sale owner. That's the biggest change in this.

now is just because that you have the listing agent and you have a real estate license, if you were writing something up as a transactional coordinator or anything and you help write it up on the other side for the buyer, whether you get compensated or not, you're responsible for every single thing that happens inside that transaction. This changes that. If they decide to go it alone, then it's you versus them no different than if it was a for sale by owner in reverse, right? And here's the thing.

I'm going to make it really, really quick. I'm sorry, I keep going on. that, do you know how many people in a transaction that has a buyer, a seller, a buyer's agent, a seller, a seller's agent, and a loan is involved. Do you know how many people get paid on that transaction? Jeff was close. It's 37 people. Do you know out of those 37 people that are getting paid on that real estate transaction? You know the only one that is employed by a buyer or a seller is the buyer's agent?

That is it. the only person that you're not paying is the one person out of 37 that actually worked for you. And that was it. Yeah. So like listing agents, you don't work for the seller. Your listing agreement is a is a agreement to market their property. That's it. It's not an employment agreement.

This buyer's agreement is an actual agreement that you're going to work for the buyer. buyer. And then people say, well, what about the lender? What about the LO? I just sent you a hundred documents that I want you to fill out. And then I'll determine whether you're worthy of my money. Does that sound like I work for you? The LO don't work for you. Not in any shape, form or fashion. Like, they control all the money. Like, the only person in all of that 37 that works for anybody, period, that works for one of the consumers is the buyer's agent. That's the one person that is probably needed more than anybody else in the entire transaction. But here's the greatest part.

He just gave you a stat that you can incorporate into your scripting when you ask them to go ahead and compensate you. Right? I love that. Hey, do you know how many people are part of this transaction when you go ahead and you sell a home? There's 37. Here's a crazy part.

How many people you actually think have your best interest and actually work for you? One, and that's me. It's exactly why it's super important to make sure that you have somebody you trust and understands your problem in your corner. And then obviously that person should be compensated because it's them against 36 other people. Does that make sense? That makes sense. Awesome.

Boom. I love it. I love that stuff. All right, Mr. Jeff, Withers. Jeff, you guys got a game tonight or what?

UNT's got a game tonight? No, they took care of LSU last night. So they're moving on in the NIT. Nice. Love it. Ballyingos couldn't handle that main green. So,

you know. Was it how to do you go like this, right? this is how you do the what's that is this how you do it yeah so yeah i mean each state's going to be different uh i'm blessed to be in a great state of texas where all our promulgated forms are pretty much fantastic and you know uh as far as the commission compensation never really had any issue there but as far as the buyer's agent commission or buyers agent agreement, you know, we've expressed that to our agents for a long time that, hey, you've got to

get this sign. If not, for, you know, you getting paid if the seller or builder kind of screws you over, at least there's a loyalty agreement of what Josh said. So, you know, hell, I always have drafted it up. Obviously, you want to put 3% of that block, that box there. But, you know, some buyers would be like, well, what if, you know, builder or seller's paying you, 2%. So about two years ago, I had a little tidbit in there to where basically it says the buyer's agent commission on the property for the

fire, I'm sorry, the buyer agent commission on the property the buyer closes on as less than the amount stated in 11A1, the buyer will not be held responsible to make up the difference. I mean, you can insert that in there and you can almost have the adverse effect since basically now

for this new bullshit agreement is that if you have two percent in your buyer's agent, the seller's paying you three, you can just do a reverse on that. Basically, you can make up the difference. You can write in your own legal verbiage into your special addendum in your contract. So you can protect yourself. And what is it? You know, the sellers that are stingy with their money and want to keep as much as possible, and one, they're not going to pay any commissions or two, it's going to be very little. You know, 70% a buyers or more are represented by a buyer's agent.

So therefore, you're knocking out a shit ton of potential buyers by not paying a commission. One, if the commission is very low, then what is the buyer's agent incentive to show that, even though it's their obligation to do that. There are a lot of bad agents out there that might just be like, well, we don't have time for this one today. Well, let's skip it. So you got to, yeah, I mean, you got to educate your sellers and show your worth and show the worth of a buyer's agent because if you don't offer that commission, then you might be shit out of luck to be sitting on the market for a long time. I had a listing three years ago where it was an attorney, they're fucking awful clients just to be straight with you. But he didn't want to pay any buyer's agent commission, zero.

That was three years ago. and I caught so much shit from every single agent. I had like 20 hate calls a day on that lesson. And it was terrible. But, I mean, we sold it eventually, but it was a pain in the ass. So, I mean, you just, you have to educate. And the rest, you know, is up. So that was not too sick.

But, but Jeff, Jeff said, by the way, Jeff goes to every meeting he can go to to find out what's going on. So every time I look at this, dude, he either watching the UNT, game playing with his kids are at a damn meeting. Do you even do real estate? Right now, not very many, but you know. But here's something important he said, right? So we're on on a listing side, because this is, we didn't even really dive too deep into the listing side and it's super, super important is for you to get them to understand why it's important to go ahead and compensate a buyer's agent. That stat right there. Hey, did you know 70% of

buyers are represented by a buyer's agent, right? And so if we don't compensate them or compensate them well, believe it or not, not all agents out there are trustworthy. What do you think the chances are of us getting into that 70%? Apparently, so we want to make sure it's fair on both sides just to make sure we get the most exposure, the most, you know, offers and making sure obviously it's fair equally. Does that make sense? All right, that's cool. I get it. But that's 70%. I mean, I love when we throw stats in there because it shows some proof, right? It creates some logic because numbers don't lie. Right. So I love that. What you got? You got anything else on what Mr. Wither said?

Yeah, kind of real quick. A lot of this is going to be no different than if you go to show up for sale by owner, right? For sale by owners are not offering any, they're not offering any concessions. They're not offering anything. So a lot of that in that realm is very similar. A stat, and I don't know how it is all over the country, but in Alabama, on for sale by owners, 93% of those end up involving at least one real estate agent. of houses that are initially sold for cell bond.

Here's another fantastic stat for sale by owners. 97% of for sale by owners close with different conditions and terms than what the original contract was for. But let that sink in because nobody knows what the hell is going on in those situations, right? You got a buyer that don't know and a seller that don't know. Like it changes every single time, right? So I think that those stats are extremely, extremely, extremely important. And it's the same, you know, John hit on this, and this is one that I use all the time.

90%, 9 out of 10 consumers, when asked in a post-sell interview, if they thought their agent understood why they need to move, the answer was no. nine out of ten, they don't mean you did a bad job. They could invite you to Tuesday's barbecue and refer you to everybody in the world. The question is, do you think they understood why you needed to make a move? And the answer's no. So that's the difference between fantastic discovery. Like, you cannot over-sale how incredibly important the discovery on all of this stuff is. The only way that you're going to garnish the money that you're trying to garnish is to provide value.

The only way to provide value is to understand what the problem is so you can solve it, right? That's what value is. And that's the same thing, even if John was doing conversion training. That's what we talk about a lot of the times. You have to crave some kind of an objection. If you cannot get an objection, then you have zero opportunity to show anybody value, right? You have to get opportunities. That's all an objection is, is an opportunity to then be able to show somebody value.

Discovery is the same way. Like you have to be kind of masterful at those things. The more masterful you are at those things, the more like all this stuff is just going to become very, very, very easy. When you're providing value to somebody in a certain way, you don't feel like you're asking for nothing. When all you do is go and open a door, Cazillo sends you a message that says, John wants to see one, two, three, main street at four o'clock, and you show up at four

o'clock and you open the door and you don't ask any questions. And they're like, I think I want to write this up. and you shove a form in front of their face that says you're going to pay me. Now, that's a tough-ass conversation to have, right? But not the way we do business, you know, not the way that sync clients and things of the, you know, things like people that actually do business the way that John describes for you to do business. This is not going to be as hard as I would hate to know that every single cell that I had, I had to just show up and meet somebody blind and then be like, what do we do now?

I don't know what you want to do. uh let's buy that sounds good how we do that uh i don't know so i mean it's like that you know this is not going to be as difficult it's mainly all just logistics yeah look if you've been following up with doing what we say to do in this coaching you are fucking built for this you are built for this change like if you literally are following suit of doing exactly what we said to do you are absolutely built for this change the other people that are in your market in your industry, in your office that are doing business differently, right? As far as doing the opposite of what Josh had just said, they are not built for this.

Maybe they will. Maybe they will build the skills, right? But you are built for, you have every opportunity to sit here right now and not be worried of what's going to happen in your real estate business. If you just follow through with everything that we go over on a weekly basis, because I promise you, the shit that we have been doing year after year, month after month, week after week is building the type of agency. that when this thing gets put in, if it does,

for you just to be easily transitioned into it and not be so much resistance because you've built that in your skill set, you built that into your business prior to this thing even happening. So, Kurt, what you got, brother? Got something else? Real quick, last question. Do you foresee this at any point in time

changing how we fill out listing agreements other than if they say to put zero, put zero? What do you mean? as far as like, because it's definitely going to change, right? Because we got to put in there. The formal change just because they're going to eliminate the commission side of things. So how do you foresee it being changed, I guess? So there's probably going to be a box, right, Josh?

In Georgia and Xavier, obviously, you know, you can let us know too. I know you do a lot of listings on that side. There's already a box in some of the forms in other states where it says seller concessions. It could be a flat fee. It could be a percentage. but there's literally already a box in there. So it's not even like you have to write an addendum or in extra notes. So it's a different word like you were saying earlier.

It'll change from permission to concession. We'll fill it out accordingly. And then you just can't advertise it on the MLS. That's about like the nuts and bolts of on the listing side what's changing. You can advertise the commission side of it. But you could advertise the concessions in possibly the description. And we'll find out right now. If we have a personal landing page as far as you understand it right now,

we can still, or even Facebook, both of those things together, it can be advertised there as far as you've been able to read into it. This just affects the MLS only. Okay. Only. And that's the way it reads. Like you just cannot advertise a buyer agent's compensation on the MLS. In the MLS.

That will go away. And don't be scared to do this and still charge a transaction fee that we were talking about, guys. Oh, 100%. You know, it's like Mariela put on there too. like we never list at 6%. If I'm listing a property, we're going in at 7, 8, always a lot higher. And then we pay, you know, 3% of that goes a buyer and we keep the rest. I mean, it's like almost every single.

And we like we carried probably 20% of the listings in the market because we're so big. So I mean, very, very rarely do we, you know, and that there's like what Jeff just put here too. If you notice like when all this started that the first thing that NAR did, is they said, okay, now, because Zillow was the first domino to go down, if you all noticed what happened to the commission that was being paid to the buyer's agent, where was it prevalently put right on Zillow, right on the front page. Now it says this is what commission is being offered to the buyer. So that also will now go away, right?

So that's something that you'll see that'll change because it was, it was an IDX feed from the MLS. but it may have a new box that says, sellers concessions up up to whatever, you know, like it really much ain't going to change. You're going to have a few dumbasses that mucked stuff up for you, but other than that,

you get 18 months down the road, and it's going to be business as usual for all of the same people that do business as usual. They're just, you're not going to see that much change. You're just going to have to deal with the, with the people that, that muck it up for you in the beginning and that's pretty much going to be it.

Yeah, the biggest change you're going to see is not really a change that already happens is that there are people that are frozen right now because they're scared to make dials. They're scared to contact a potential buyer or seller because they don't have the confidence or understanding on how to articulate the buyer paying commission or the seller paying the buyer's agent, right? They are frozen because they're not skilled enough, right? And they're not willing to go through the hard work to get mastery in your skill set. So to me, it's only going to drop off more agents. To me, it's only going to provide more opportunity.

To me, there are going to be agents where the people who sold three or four deals a year are now going to sell zero, right? And those who only have referrals who now want to switch to, you know, going ahead and generating leads, they're going to have struggles as well. So it's a confidence thing. And a confidence comes from the skill set. Skill set comes from the practicing. and you guys all have the right scripts and framework to do it.

So I think that's the biggest change I'm already seeing is that people are scared to make dials because these headlines are plastered everywhere. They're like, what do I say when they say this? How many times have you practiced what to say? Do you truly know what's happening, right? Do you know how to articulate your value before fighting with them on what they read on CNN

isn't the truth? Right. So the biggest change, guys, is that there's more opportunity for you. Like, that's plain and simple. But I also realize nothing has absolutely. actually changed yet, right? Like literally nothing. We have several months, right? We have several months. How many closings can you get done in the next several months? Right. If you're somebody that's worried about the change and your ass ain't calling three, four X, what do you do it? Right? Like,

you better do it. You better start dialing now because if you're scared of the change and you're not going to work on mastering your skill, when July happens, if it changes, you are going to be worse off than ever before. But people in this group, I know you guys aren't like that. So double your role play, double your dials. Do those things and you'll find yourself in a much better position when July comes. Everybody, oh my God, it happened. And you're like, bro, I'm just, I'm still cruising. This is the same thing I've been doing for the past X amount of months. Right. And so be the person that sets themselves up for success no matter what happens. Change only scares people that aren't doing the work. Right. That's to me. If you're not doing the work, when change happens, you can pivot faster.

right when you're moving you can pivot faster so you guys have all the tools if you guys have any questions obviously i would drop it into slack because there's a lot of brilliant brilliant brilliant people in this group um and there's some answers that maybe i don't have that that's why i brought josh on right like maybe i don't have maybe josh has maybe jeff has or maybe somebody else has because i want to make sure everybody knows the power of this group isn't just me speaking and giving you guys tools and resources and tips it's about the power of the community and what you guys all have to offer so um thank you guys josh grenth guys before we jump off here?

The only other thing that I want to add, guys, is if you go back to coming out of 2019, right, you come out of 2019, you're going into 2020, and for those of you that were in it, the uncertainty about where planet Earth was going to be three or four short years ago, everything on planet Earth is shut down. And, like, everybody's going to pass away.

Everybody, I mean, like, so you look at the gravity of what that was versus the gravity. of what this was, and everybody that was on my team coming back, they asked the same thing. What are we going to do? We're going to do the same thing we did yesterday. And then tomorrow we're going to do the same thing we did today. We're going to keep prospecting like madmen, and we're going to keep moving forward doing the same exact thing that has got us to the place that we are that we're having tremendous amounts of success. And everybody buckled down. They doubled down. And I can tell you, we went into, they had a little bubble there, and then where some things were closed down, and this was in February or March, and then we had hardly any closings.

And we come out into June and close 67 houses in June, right? So it was like an explosion of epic proportion. A lot of that was because the market was good. But the market wasn't any much different back then in the very first of 2020. The difference was that everybody doubled down on prospecting. And everybody had clients everywhere. And it was every single person on the team had stuff. And it all come down to we just did the same thing as we did the day before. We did the same thing as we did the day before. The same thing as the day before. Except we did it better and better and harder and harder.

And it just, you know, this isn't any different. Like you don't, that's the difference between people. And this is like the difference between somebody that's going to be successful and somebody that's not going to be successful is if you're looking for an excuse in NAR you use as an excuse and you don't do whatever, you're going to fail. If you look at things as opportunities

and you double down, you're going to be successful. Like, this ain't going to keep you from being successful. The bullshit story that you tell yourself about why you can't do it, that's why you're not going to be successful. That's a John Moran special right there. That's it for me. I love it. I love it. Josh, appreciate you so much, man.

Thank you for dropping the knowledge that you had brought because once again, you're on a lending side as well and you have way more knowledge on that. Guys, hopefully you guys took some information down but also understood the big picture here. It's time to get to work, right? Time to get to work. If you're frozen and freeze mode the last few days,

time to go ahead and break yourself out of it. Pick up the phone today, make more dials than you did yesterday. Do a little bit more extra role play. Let's get after it. Right. Real estate mastery coaching clients, you are built for the shit. You are built for it. Right.

So go ahead and step into the. the arena and show everybody why you're built for this. Appreciate you guys. Love you guys. Don't wait for the door of opportunity to open this week. Go kick it down and take what is yours. Until next week.