NAR Settlement Scripts for REALTORS to Explain to Clients 

The best investment one can do right now is investing on real estate though stocks are good but ever since I swapped to real estate, I've seen so much difference.

WA State has already been doing this for over a year. Literally nothing changed, quite the contrary in fact. Our office BAC has in fact increased through this market. It's honestly not a difficult conversation to have. Tons of value opportunity for buyer's agent who can hunt for property.

You guys are incredible people love this message we are lucky 🍀 to have you.

Thank you for this insightful dialogue!👍👍👍

Thanks bunch… it was very helpful.

You guys are awesome love ❤️ this training

Thanks fellas!

As a buyer, if I can write my own offer on a house I have found myself, why would I require a seller to accept less money from me? If two buyer's make identical offers but one does not require the seller to pay any commission, whose offer do you think will be accepted? Your first observation was the correct one: there will be fewer agents. You may disagree, but there will also be lower commissions.

A potential hurdle I could see happening with a buyer's agent submitting a commission agreement along with the offer is that if the seller agrees to the purchase price and disagrees with the commission being requested then the buyer's agent must spend time and energy negotiating for their own interests rather than their client's. And then what happens if the buyer's agent and seller can't come to an agreement on the commission? The agent tells their buyers that the seller agreed to all their terms for the purchase BUT the deal fell through because of a commission disagreement? Of course a buyer's agent needs to be paid but waiting to negotiate that amount while negotiating the terms of the purchase seems like it could get dicey.

Little difference when the buyers commission could be wrapped into laterally the SALE amount and ergo the LOAN amount and in many areas in this country buyers dont have that EXTRA $20,000 or whatever-- has no bearing on what the BUYERS agent is worth…is what FUNDS the buyer has…

Will a buyer’s agent operating under a Buyer Broker agreement who either loses a deal or, in the mind of a buyer, is unable to secure enough seller concessions/contributions toward the buyer’s costs (which would include the buyer’s agent’s commission) because of a commission “dispute” be found in violation of honoring/delivering fiduciary care? In other words, does a buyer’s agent have to give up part of their commission as part of their fiduciary responsibility?

What has ALWAYS yanked my chain when selling over 50+ properties over the last 10 years is that the commission that I pay my listing agent gets split with the buyers agent just to corner me into concessions and freebies. By the way I turn over great turn key properties. To say the least I am all for the change!

What if the buyers coming to an open house and places and offer with the sellers agent and has no buyers agent?

compensation can and still will be discussed with the seller and offered as agreed upon

commisions are definitely going to be slashed because the number of closings is going to plummet unless your seller is willing to pay the commision that property is going to have to drop on price to make it worthwhile for a buyer to pay the commission otherwise. this will have a domino effect on the whole market dropping real estate values.

Well, you are missing the fact that VA, Fannie Mae, Freddie Mac and FHA all have verbiage that do not allow commission to be paid with loan money. So you better rethink your ideas.

Whistling past the grave yard...

Just jumping in early but my initial reaction is, if you add buyer agent to purchase price what happens when the property doesn’t appraise?

"Script" ??...you better be careful as disclosing the law of a contract to clients may actually imply that you're a legal expert

Can we at least wait until the judge reviews this and decides if this is allowed? Are you even aware this is NOT a done deal and it has to be OK'd by a judge. Why is everyone acting like this is already done?

I wish I was an agent with this settlement. I’d see it as a great opportunity. By it being a requirement it makes the conversation very easy and now clients won’t be able to just work with a ton of different agents.

This video screams of denial and desperation. Sellers will no longer entertain offers that address let alone require buyers agent compensation. Selllers won’t pay upfront unless it’s tied to performance and that expectation of performance will increase rapidly over time as compensation decreases due to frantic competition among agents. The industry has changed from a lucrative career with low bar of entry to a service job paying just under CPA levels of compensation.

You guys are hilarious. I love it. Keep preaching your program to misinformed gullible real estate agents who don’t know how to adapt for themselves and therefore are forced to use your “scripts” to prove to their “worth” to potential clients. All this in an effort to keep the same inflated commission structure so you still get paid for your real estate “coaching” business. I would want to choose an agent to represent me that doesn’t need to rely on your coaching in the first place. The whole point of these lawsuits is to combat the undue influence and control NAR has over not only consumers but their own realtors in the real estate market. If nothing changes, this industry will be sued again by attorneys who see blood in the water and have a much better understanding of contract law, agency law, antitrust law, tort law, etc. compared to real estate agents and their real estate coaches. The NAR settlement is the tip of the iceberg, and if the judge (and the DOJ) doesn’t approve it, it’s only because it doesn’t go far enough.

I feel it's a little too early to get too deep in what the new normal will be since it hasn't been approved yet. But the real question out there is - are listing agents going to still charge (example: 5%-6%) when they take a listing? You say that they aren't going to worry about where the buyer's agent will get paid from but they most certainly should discuss it with the seller if they plan on paying it through the many other NON MLS options like concessions etc. If a buyer's agent signs a buyer agreement at the beginning (for example 2.5%). Then they find a house and call the listing agent to see that they are offering 3% - then the buyers agent is screwed out of 1/2% money left on the table. Also, I would imagine some buyers agents may be inclined with their buyers to rip up the old agreement and sign a new one based on the listing agents offerings. This whole situation is disgusting. Good for the consumer??? Laughable. BAD for real estate.

Mr Seller -- you're paying me X% for my listing service. I'm going to give X% of my commission you are paying me to any other agent appropriately licensed whatever percentage I'd like from the % you give ME for my service. Nothing has changed except Media gone wild. What else is new. Buyer agents will call me before showing and ask if we are offering commission. I'll let them know how much of my commission I'm willing to share with them to bring their buyer. The only thing that has changed is I'm not putting that on the MLS and I'm having buyer's sign agency agreements.

These guys gave me a headache!! 🤪🤪🤪

The Consumer Federation of America study from 2022 shows 89% of Boise ID buyer side commissions were identical...3%. Even higher uniformity in commission in Tennessee. There will be innovation. The process will be less expensive.

As an economist and renovator, the problem is the huge commissions where sellers and buyers both lost, Yes: up to $1,850 per hour, as in the example of a house that recently sold across the street. Take a $750,000 house a $37,500 fee is due even if the house sells in 5 days, as one did across the street last month. Thats more than the house appreciated in the past two years, or $7,500 per DAY of fees due to agents for that 5 days, so if an agent worked 4 hours per day for all of those days, (20 hours total) that's $1,875 per hour. spilt between seller and buyer. Competition is what this is about! Disclosure: I sold my house in Northern Virginia in 6 days for $780,000 with a custom sign that cost $28 a website from a template for $12, and did only four showings. That $40,000 saved realtor fee went towards my new house. Finally, the fee I saved is not taxed, its AFTER TAX DOLLARS meaning if you are in a 25% tax bracket one would save another $10,000, so that would like earning $50,000 tax free, to you for selling your own house. JUST DO IT!

Most Buyers use the Internet to find their new home. Agents are going to have to adjust to the fact that the Gravy Train is Over.

FLAT FEES for all no more % commissions never had to just like you never had to pay a buyers agent.

This is total misinformation. The listing agent can still negotiate enough of a commission for them and the buyers agent. They can still pay a buyers agent a portion of their commission. It just cannot be listed on the MLS. It Hass to be handled between the listing agent and the buyers agent. That’s it the end.

Buyers are NOT going to want to come up with the extra money in their closing cost. How will they pay it?

This doesn't make a lot of sense. If you don't have the "buyer commission conversation" until after you receive an offer, what are you telling the buyers agent when they text you asking what the seller will pay before they show? if you say something like, depends on the offer, they probably will pass on the house assuming the seller is not paying a commission so now you have lost a potential buyer (unless buyer is willing to pay full commission which im guessing many will not)

It's a shame you don't see the buyer agency commission as a marketing expense. When I asked for my listing fee I tell them that this is also covers the marketing expense which is to entice buyer's agents. Do gentlemen are very smart however I don't think you ever looked at the buyer's agency commission in the MLS as a marketing expense which is exactly what it is

Also, if somehow the plaintiffs (sellers) believed this off-MLS posting of buyer agent commissions would curtail (what I believe is absolutely unfounded) a buyer’s agent “shopping” for the best seller-delivered commission, they are wrong. This will exacerbate that practice. Buyer’s agents WILL almost certainly now “shop” for those higher commissions and concessions when looking for a buyer’s properties. This would be, in practice, in both the buyer’s and the agent’s best interest, no?

Buyers need to think -3% to every offer they make.

Explain to me what value realtors bring for such a huge commission? It hasn’t been worth it for a long time.

the buyers agent commision was never negotiable to the seller - if you didn't offer 3%, buyer agents would not show your house to the buyers. THIS is why there as a lawsuit. And you're smoking crack if you think commisions are going up, just rediculous.

No realtor on the planet is worth more than 50 bucks an hour. Realtors should never make more than a ER nurse, or fire fighter, or pilot, or insurance agent. Realtors process paperwork, take pictures, and answer emails. Basically the same as an accounts receivable clerk. I’m all for a flat fee of 2k for a seller agent and 2k for a buyer agent.

I have about 5% of my portifolio in AAPL stock, any advice on any other that I can grow my $200 k capital to a million dollars???

Sellers don’t need an Agent anymore than the Buyer does. But if a Buyer chooses to be represented by an Agent it’s Against The Law for that Agent to steer their Client away from a property that is For Sale By Owner with no commission offered! Personally I know how to call a Title Company myself and I’m going to use a Real Estate Attorney if I need help. The Buyers Agent doesn’t work for me they work for the Buyer. So as a Seller I’m definitely NOT paying for he Buyers Agent. It should be a Flat Fee or an hourly Fee for Agents compensation.

most agents have not been hiding compensation and that it is BAKED into the sales price. shame on you for implying. yes, there are unprofessional people out there as there are in every business. most agents do explain ..but implying that we bake our commissions into the sales price with out explaining is bs.

Say the truth. "Correct Mr/Mrs Buyer- the value I add is subjective at best. For $12,000 I'll hold your hand and be an intermediary, delaying answers from the seller, lender, appraiser, title, etc until I get around to asking on your behalf. I will actually know none of the answers, but youll 'feel' better having me 'represent' you."

This is false information based on what my brokerage Compass informed us. My Brokerage confirmed that the commission paid by the seller to the buyer agent can still be in the listing agreement. Additionally, my Brokerage confirmed that the commission being offered to the buyer agents can be listed on any other website, not on the MLS. For example, the brokerage websites will list the commission being paid to the buyer agent.

Scripts and talking points? Why not just tell the truth?

Filling your pockets is over. Cut the BS