Ready to build your business? NOW is the time to shift your energy (and focus) from the NAR Lawsuit Settlement to serious skill building.

On a recent coaching call, we had a POWER AGENT® member who was frustrated and even angry with NAR and their handling of the recent lawsuit. She’s in good company. Many agents are up in arms and feel like they didn’t get “what they paid for” in terms of representation from the attorneys in the case.  

The truth is that our attorneys were out-lawyered. For example, of the jury of eight people, six out of eight jurors had never worked with a REALTOR® before. So, here you have six out of eight people who don’t even understand the process of buying and selling real estate using an agent in the jury box. How is that in any way a jury of “our peers”? Add to that in a class action suit, there has to be 100% agreement on the verdict and those particular eight people said, “This is a violation, here’s $1.78 billion.” (Let’s keep in perspective that it was just EIGHT people or as Darryl said in a recent Inman article, “It wasn’t 8 million, 80,000, or even 80 people who decided against the defendants. It was only 8 people in a box. Don’t allow the opinions of 8 people in a box define your worth or dictate who you are.” 

Ketchmark, the plaintiff’s attorney, did a great job convincing them that NAR was guilty, and unfortunately, NAR’s lawyers failed to counter his claims effectively. 

Related reading: NAR – NAR Settlement FAQs 

Resetting Our Thinking and Moving Forward 

Here at POWER Headquarters, we aren’t Pro-NAR or Anti-NAR, we’re PRO AGENT. NAR is the largest lobbying association of any industry, and because of that, they have been able to help influence real estate in many positive ways over the 150 years of their existence. There is a reason they have been around that long, because they provide a valuable service for buyers and sellers. Their problem in recent years is their lack of communication with their members on what they have accomplished, as well as poor decisions made from their leadership. In short, NAR has lost its way, and now their goal is to find it again. 

Settlement Insights 

The reason that NAR chose to settle rather than appeal the verdict was because, in order for them to appeal to $1.78 billion dollar judgement, they would have had to put up the $1.78 billion dollars into escrow while they pursued the appeal. Then, they had the big unknown as to how much future litigation would cost, how long that would take, and frankly how much more damage would or could be done. They didn’t settle as an admission of guilt, they settled to keep NAR intact financially, and also to reduce the liability of its members, who are now protected from lawsuits of their own. 

Related reading: Real Estate News – NAR commissions settlement details revealed  

That being said, here’s why it’s important, for you as an agent, to STOP relitigating and rehashing this lawsuit and demanding an appeal: it’s not helpful, for you or your business or your industry. It’s keeping you from moving forward in your business. I’m not saying don’t stay in the loop, or know what is happening in our industry, or learn new skills to stay ahead of the curve. Of COURSE we want you to do that. In fact, that’s the kind of training and coaching we provide every Wednesday on our webinars. Darryl is doing the heavy lifting to bring you weekly updates so that you have a trusted resource you can turn to any day, any time.  

How Can YOU Affect Change?  

While changing things at a national level isn’t quite within reach for most agents, change can also start from the bottom. I recommend joining your MLS in a leadership position or committee. Once you are there, you can start proposing rules or changes, for example, to help cut Zillow (arguably one of the biggest threats to the real estate industry) from gaining too much control over the industry, for example, how they have cornered the market on lockboxes with Showing Time and leaving agents with no other options. Creating rules around healthy competition and allowing options gives Agents the ability to choose the lockbox they like best, or buy their own. It’s a matter of becoming more proactive, and you don’t have to be the president or CEO of NAR in order to do that. 

NOTE: One way that you can keep your finger on the pulse of what’s happening with these lawsuits and settlements is to add our NAR Lawsuit Updates page to your favorites. Trainings, articles, videos for sharing, and so much more to help you stay up to date and confident, no matter what happens in the industry.  

4 Things Agents Must Do Post-Settlement 

Until the settlement is finalized, we don’t know exactly how changes to our current MLS will be implemented. Rather than get caught up in the details, remember that your fee is part of the negotiating process. Decide what you want it to be then dig in to master those commission conversations.  

1. Don’t engage in the online drama. It’s easy right now to jump into the social media chatter about the lawsuits, what happened, what’s next, and who’s to blame, right? Don’t. First of all, that’s not good for you, your business, your brokerage, or your clients to see. It’s a rabbit hole that has no bottom, so leave it and focus on creating your breakthroughs and serving people at your highest level.    
2. Decide how you are going to present commissions on your listing appointments. If you will be using a tiered plan of service, what rate are you comfortable with, and how will those conversations will play out. We will talk more about how to do this effectively in our training this week.    
3. Decide how you are going to present commission on your buyer appointments. Know now that your Buyer Agency Agreements are a must. Decide on your standards of service and how you will navigate that conversation with buyers so that they fully understand both the value you bring and the different ways that commission can be paid.     
4. Become masterful at those two presentations. Now is the time to master your listing and buyer conversations and be able to communicate your value and communication. 

The Tiered Marketing Plan 

One thing that came out of the lawsuits what that homeowners often feel as though they have no options when it comes to paying your professional fee. That isn’t true, of course, but the public perception says otherwise. When it comes to presenting your fees, we love the tiered approach, which offers three or four different commission fee options, each with a certain level of service and work attached.  

This outlines for your buyers or sellers exactly what they can expect from you in each level of fees: lower fees mean fewer services, but they save some money if that’s important to them. 

More extensive services mean higher fees, but when your client sees the value in the additional work done, easing their own stress in the meantime, they understand the value of paying the higher rate. Not only does this ease their minds, but this approach gives them a say in the process and how they want it handled. This also makes negotiating more unique terms for your fees easier.  

POWER AGENTS®, find a customizable version of this tiered plan in your classroom here.  

“I closed my $2M listing with full commission, thanks to you Darryl, I negotiated up on my commission based on all the tips you shared in your training. Thanks again!” – Kulwinder Sandhu, POWER AGENT®, BRG Realty Corp

“I used this concept yesterday with our highest priced property ever. Instead of the 5% we’d originally agreed to, they upped it to 6%! Thanks for the confidence Darryl.” – Heidi Robinson, POWER AGENT®, Robinson Realty Company

Related reading: Top 7 Takeaways from NAR Commission Lawsuit Training  

The Consumer’s Guide to the NAR Lawsuit Settlement 

If you haven’t already, you will likely face questions from clients about the lawsuit, the settlement, and what it all means for them. Thankfully, we’ve already done the work for you and created the Consumer Guide to the NAR Lawsuit and Settlement, which comes in both guide and video format for you to share with your clients to provide answers (and reassurance) to the concerns they may have.  

It covers the “agents are paid too much” objection, the buyer’s agent commission question, and even helps you navigate the answer when someone asks if they can “get in on” the lawsuit compensation and so much more. 

The guide has 23 customizable pages so that you can easily add your contact information and personalize it for your clients and prospects. 

Watch the insightful video that Darryl did for consumers on the topic and check out Darryl’s Weekly Market Update Slides with graphs and charts! 

“I have to say that the amount of information, explanations, videos, and tip sheets that Darryl Davis and his entire team have provided to us, in some cases, months ahead of this lawsuit outcome is top notch! The information available on the website, incredible!”  – David Joslin, POWER AGENT® DJoslin LLC   

Our coaching calls are filled with questions regarding how to handle the top questions consumers have regarding all the NAR Lawsuit Settlement and DOJ headlines. As one member suggested, each answer in the guide is like an “elevator pitch” for how you can handle these questions in real life, and how you can be pro-active in having these kinds of conversations with clients with more confidence and less apprehension. 

“There is nothing more valuable than getting to ask Darryl a specific question directly on a coaching call and have him help you directly and give you a breakthrough.” – Suzanne Greenblatt, POWER AGENT®, Keller Williams Realty Elite

The Takeaway 

We know these lawsuits and the recent NAR settlement are a lot to take in for some agents, but we’ve got your back, not to mention the resources to help you have some important conversations with your clients, as well as other agents. It’s important not to get hung up on the settlement, regardless of your feelings towards it, but focus on moving on, learning from the mistakes that were made, and above all, serving your clients in the best way you can while building your business.  

Still not a member of the POWER AGENT® Program? Give us a try!  We offer a budget-friendly coaching, training, and customizable marketing toolkit designed for real estate professionals. Our program has helped thousands of agents significantly boost their listings, fortify their business, establish enduring client relationships, enhance their authenticity and confidence, reduce stress, and shape fulfilling careers and lives.  

Check out the POWER AGENT® PROGRAM here!