KGCI: Real Estate on Air - NAR Lawsuit Buyers Agents & Listing Agents

Episode Date: May 21, 2025

I truly believe that our brokerage is leading the way when it comes to the NAR settlement, how this affects your business as a buyer's agent, as a listing agent, as a referral agent. We just jumped off a call with EXP leadership that was giving us guidance. And I wanted to share it with you because if you're not a part of EXP, then maybe you can implement this into your business or if you want to become a part of the community that is leading from the front and starting action and giving us scripts already of what exactly to say to best help the client and keep us in check, then join us. Book a call using the link below if you have questions, watch any of my other videos,

or if you know already that you want to apply because you've watched the other videos already and you want to be a part of our community, then you can apply using the link below. I'll see your name come through within two to three business days, and I will onboard you immediately. So let's begin. A lot of the NAR stuff is going on right now, so this video is to help with some scripts and procedures as what we were told to do to hopefully help you in your business as well. So let's start. The first half is going to be as a buyer's agent.

The second half of this video is going to be as a listing agent. So let's begin. If you're with EXP, then you are covered by NAR with this. Therefore, you're not being sued individually, like some agents actually are. But EXP is covering, if you're with EXP, you're covered. And of course, if the rule or the settlement changes in July or August, if it bleeds over into August. Not everything that I say now can be set in stone 100%. So do not take this as fact. I am not telling you how to run your business. Hopefully you can get some nuggets out of this

to help you in your business. But anything can happen. This, you know, we may predict that this whole thing is going to take us in this direction and we might end up going this way. Overall, this is how to best take care of the consumer, the client. So let's start with the buyer's agents. If you're a agent, I think there's going to be the biggest separation between the good agents and the bad agents. And that's going to start with a race to the bottom. Like in any business, you can only go cheaper to the point where it is just not profitable. Someone similar to how Peloton, when they started selling their bikes, they were at the same price as everyone else. And therefore, everyone else thought of Peloton as the same way that they thought of every other bike, like Nordic and anything else.

it during COVID, they're like, you know what, let's double our price. And I don't know if they exactly doubled it, but they increased it dramatically. And guess what happened? The sales went through the roof and not just because of COVID. Their sales went way further than any other bike of that category because they were like, we don't even want to be jumbled into that category. We are different. We are Peloton. And that's like somewhat similar as to what agents I think are going to be like. They're going to be those agents that just race to the bottom, that they're going to be one of a million, in, one of a lot of other types of bikes, that you're just like, pick and choose. It really, it's the same thing, whichever one you choose is throw a dart.

And those agents are going to say, oh, do you want to show a house? I'll show you house. You just have to sign something, and it'll be super cheap. I'll just charge you $50 for each house that I open for you or $100 for each house that I open for you, or shit, maybe even less. And then they're going to be the good agents that know how much their time is worth that are not participating in that race to the bottom because they know that the effort that they put into just reviewing the property before they even go show it, that is worth more than $100 in and

up itself, let alone the commute, let alone the time spent at the property and analyzing it and taking what they know into the client's brain and the drive back. And then the negotiations and even further research after the fact, good agents are worth well over $350 an hour. I tracked my hours. If you've ever watched any other previous videos, my hourly worth when working with buyers is over $450 per hour. If you don't track your hours, if you don't track your hours, if you don't track your numbers. I have a super easy spreadsheet, so comment below if you want it or shoot me a text if you want it. My information is below. But overall, there's going to be a big difference and everyone's going to be able to see the separation between the bad agents and the good ones.

EXP has given us direction. They've already given us scripts of what to say. And if you're part of XP, you already know what it is. If you're part of my community, you definitely know what it is because I throw everything in our WhatsApp chat and in a group chat. But anyway, EXP has led the way, and we've already started to incorporate things to help us. So that way, once the NAR stuff is settled in July or August, whatever it is, we have already had good habits along the way and different habits so that way we can continue just moving our business along. So one of those things is having a specific form to show one, maybe two homes. This, I think, very much so helps those that focus on speed to lead or paying clients. Say you pay for

for Zillow leads or Google PaperClick, pretty much the leads that aren't married to you yet, where you still have to date around and see, are you guys going to be a good fit? Or are they going to want to work with you for you to help them purchase their home? This form solves a lot of that. This single property, this one specifically single property, buyer broker agreement, is, hey, we don't know if you want to work together yet, but I am a licensed real estate agent in St. Paul, Minnesota. So this is the form in order for me to show you that one house that you mentioned that you were interested

in. That way, we can kind of get to know each other along the way. We can meet at the house. We don't have to have a buyer consultation over Zoom or over the phone. We can do it there at the house. And then after that, we can decide, or you can decide, if we think that we're a good fit. At that point, we're going to be signing an exclusive buyer burger agreement that says that I am your only real estate agent, so that way I can put in my best effort in doing all the research for you, knowing that you are now one of my clients. The purpose of this form is to start that conversation about how much your compensation is. That way, it is as transparent as possible,

which is the purpose of the NAR. Now, your opinions on how, if it's actually ending up to be more transparent or not, is not the point of this. We can have a lot of different opinions on that. But the point of this is to give you some tactical tips as to how to continue your business and outwork others,

get more clients, and have your business be unaffected as a buyer's agent or a listing agent with this NAR stuff. So carrying on back to this form, it shows, hey, you wanted to see 1, 2, 3, Banana Street. Excellent, let's go. I'm just going to be your agent representing you

for 1, 2, 3 Banana Street. We'll figure out if we want to continue working together. If not, no big deal. I can refer you to another buyer's agent, if you would like. And then the second topic of this forum is talking about agency. So it forces you as an agent to have that conversation with the client,

with the ultimate goal being transparency. It talks about how long that agreement is good for, and that biggest bulk of what you'll see on this form is the fee. How much are you asking to be compensated? And right there in bold, it says the fee is negotiable. So that way, it is very transparent, again, to the buyer. The buyer knows that they can negotiate how much you're worth.

So now, of course, this is our forum that we as EXP Realty is using. Maybe your brokerage is using something different. I hope that your brokerage has started a form such as this. We got this information. It's April 2024. I hope that you and your broker are having these conversations. So the obvious question is, well, what if the client that I'm talking to wants to see more than one property?

At that point, what you're going to say is you're going to transition to the exclusive buyer-broker agreement. If they don't want to commit right away, then you can use this form as a way to show them one, maybe two properties. You have to add that second address on there. But you can say, well, how about we do this? How about I show you the property, the one, two, three, banana street, and one-two-four banana street. And after that, as we start talking some more, we're getting to know each other, you can see by the end of that day, if you'd like to continue working with us. If you want some more time to decide that, that's fine too.

You know, whatever it is that you want to say. But at least that gets you in the door with a client with a signed agreement of how much they would be paying you, because that needs to be decided up front if they want to see more than one property, more than two properties. And at that point, chances are they're going to want to work with you. So get the buyer-broker exclusive agreement signed. And again, talk about agency. Talk about the commissions. What EXP is working on super hard and they're doing it super well is helping real estate agents,

both buyers' agents and listing agents continue scaling their business, increasing their business. Not just trying to remain average as like, oh my gosh, what happens if, no, they're like, here's how to continue implementing this into your business. Here's something new to implement it into your business. And here's how to continue scaling, which I think is amazing, obviously. Going back to the second portion, number two, of this form, the length of the agreement, it could be whatever, I mean, this whole thing is about whatever you and the buyer or buyers agree upon. So if the buyer is like, no, I only want to see this one proper.

or I only want to see these two properties, or if they say, I want to maybe date you for like a week or a month, then that could be the form, the length of the agreement. It could be for one month. It could be to see one property. It could be to see all the properties in this one zip code. Maybe your brokerage will have a different form for zip code or area suburbs. Now is the time to be thinking creatively, and that's what our brokerage told us too. As we are using this in the field, what's the actual feedback?

Is it good? Is it positive? What should we change? Because there are going to be changes. If there's one thing for sure, it is going to be that there will be changes. Now, what I think is the most important thing to mention to the client, again, in being transparent, is to let them know until they choose an agent, anything that they say can be used against them in negotiations. That's the exact script that we're getting from EXP, and I think it's brilliant because it's true. If the client is to go directly to the listing agent of a house, anything that they say, you bet that listing agent who is only at the time being, represented by the seller, they have the seller's best interest in mind, they are going to use that

against that buyer in the negotiation. Something like, oh, I love the school district or my, I really want my kids to go in the school district, boom, the price now just increased because we know that you need the school district. Or, oh, this is just walking distance from my work, or it's right by my favorite ice cream spot, it's two minutes away from the hospital and my father is sick, no matter how much of a pity story it is, this is capitalism and this is America, whatever your opinion is on it. If you say that, that listing agent is going to increase the price. In other words, that's going to be used against you in negotiations. So after I say that to the client, the client's going to be like, well, what do you mean? And then that just goes right into

the conversation of the exclusive buyer broker agreement, which you can sign there, or they can think about and you can sign later, or maybe they don't end up signing with you. Which leads me to my next point, which is retainers. Now, in the state of Arizona, we have had retainers as an option in our buyer broker for as long as I've been licensed. Do a lot of agents do it that way? No. Do I think we're going to see more retainers as, you know, post-July? Yes. Just like attorneys, people will want upfront payment in order to do work later. So going back to the form that I showed you, you can add this in section six. Always ask your broker about how to word it so that way everyone is being transparent, that's the whole point of the NAR lawsuit. But that's what Section 6 is going to be

available for is for the retainer or to maybe add a second property onto that single property buyer broker agreement. Now, if you're a buyer's agent and say you have a lot of new construction who compensates buyers agents differently than resale homes, as you know, a lot of times new construction will pay more than 3%. And as you know, with the NAR settlement, it's likely that, you know, that you're that when you put your compensation on the buyer broker agreement, that you will not be able to get compensated more than that. You can only go down, you can't go up. So whatever percentage you put,

if that builder or the new construction builder was paying more, you now lost out on that. So specifically for this, you can input two different scenarios. As long as you're specific, hey client, if we're gonna be purchasing a resale home, my compensation is, you know, whatever it is, if you're gonna be purchasing a new construction, then my compensation is going to be this.

Again, this is negotiable. But that way, as long as you line item and out, hey, if you're going to be purchasing a new construction, I will be compensated more because they tend to pay the buyer's agent more. As long as it's clear and transparent. Again, that's the name of the game. That's the point of all this, is to have those conversations up front that I guess a lot of agents weren't having.

That's the point. Then you should be good to go. Now, of course, a lot of agents work with VA buyers, and that's my bread and butter. Or rather, I should say that's my meat and potatoes, because that's the biggest part of the meal. That's what we focus on. That is our niche, is VA, buyers and military sellers.

So how do you circumvent this? Your buyer may direct you to write into the contract the following. Seller to credit buyer X amount at close of escrow to satisfy buyer's contractual obligation to buyer's broker. I'm sure that the VA is going to be changing the regulations and fast in order to help out the military, clients. And this is the way that we are going, that you will need a signed buyer broker agreement, even to step into a house, definitely to get paid in order to close and get paid. So that's the buyer's

side. Now, on the listing side, in our community, we always have been taught to bring in three different list prices. I won't go into that because you can just ask me, book a call if you want more information on anything that I'm talking about. I'm more than happy to talk one-on-one. If you know you want to be a part of our community, then apply using the link below. As soon as I see your name onboard within two to three business days, I'll start onboarding you immediately. But if you're a listing agent, then what EXP suggests is, again, still bringing in three different price points. One is like a wholesale type of price point, pretty much as is, like making no effort. This is how much you could sell for two day without even cleaning your countertop.

The second price point to bring at listing presentations now is the price that you can sell the property for without the seller compensating the buyer's agent. And the third price that you could list that seller's property for is the price with the seller compensating the buyer's agent. So before you go on these listing appointments now, we're all going to have to run comps in an additional way. And that additional way is what other properties in this neighborhood paid a real estate agent?

How much did they pay them? And what price did they sell at? And how many properties in the neighborhood or this, you know, mile radius, whatever you're doing for your comps. How many did not pay a real estate agent? And then therefore, how much lower did that property sell for? So that's exactly the information you're going to have to bring to your sellers to tell them exactly. If you wanted to save on the amount of paying for a buyer's agent, we're going to have to

list it at this price. But if you wanted to pay for the buyer's agent, this is what your neighbors have been paying, and this is how much they have gotten their homes sold for. The choice is yours. I hope that this helped in any single way. If it did, please leave a comment below. if this helped you even a little bit, share this with a friend. And if you want to be a part of a community who's constantly talking about this, just because I haven't made videos about this,

doesn't mean we're not talking about it. We're talking about this so much. EXP really is leading from the front. If you want to be part of our community, if you are doing five to ten transactions a year and you want to do over 20, join us. We're doing over 40 transactions a year. And we have the systems, the SOPs, the processes, the checklist to help you. We literally give you everything for free. You just have to do it. So I'll see you in the Zos. Zoom call if you book a call. Otherwise, if you want to apply directly, do so, and I will start onboarding you immediately. Let's go. See you later.