Brian Icenhower makes the NAR Settlement simplified for real estate agents by laying out the talking points for leaders, brokers & managers to increase compliance by agents in their organizations.
Today, we’re going to cover the NAR Settlement, simplified for real estate agents.
Hey, it’s Brian Icenhower here, and I’m excited to share some crucial insights with you today. If you’re a real estate agent, team leader, or broker owner, the recent National Association of Realtors (NAR) settlement has probably been a hot topic of conversation. Maybe you’ve even felt a little bit of anxiety creeping in. You’re not alone—there’s been a lot of chatter, some of it pretty intense, about what this means for our industry.
So, let’s take a deep breath and simplify things. I want to help you dispel any fear and provide you with the knowledge you need to confidently navigate these changes. After all, this isn’t the first time the industry has faced a challenge like this, and it certainly won’t be the last.
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VIDEO: NAR Settlement Simplified for Real Estate Agents
The NAR Settlement: What’s the Big Deal?
To start, let’s talk about what the NAR settlement really is. At its core, the settlement is about how we, as real estate professionals, handle offers of compensation—specifically, how we advertise that a seller is paying a commission to the buyer’s agent.
The big takeaway? You can’t advertise the seller’s commission payment to the buyer’s agent in the MLS (Multiple Listing Service) anymore. But before you start worrying, here’s the good news: you can still advertise it just about everywhere else—on the listing itself, your own website, signs, flyers, social media, texts, emails, and more. The only place you can’t is in the MLS or any listing syndicated through MLS to other sites.
Keeping It Simple: A Piece of Paper
Now, if you’re feeling like the sky is falling, let’s put things in perspective. My dad was in real estate for 50 years, and he always said that lawsuits and settlements like this are just part of the business. They’re not new, and they’re not the end of the world.
In most cases, these settlements result in just one more piece of paper that we need to get signed. And guess what? That’s likely what this NAR settlement will boil down to—a new piece of paper.
In California, where I’m from, we’re used to signing a lot of paperwork because of the many lawsuits and settlements that have happened over the years. This situation is no different. It’s simply another document that we’ll need to include in our transactions, and once we do, it’s business as usual.
The Real Impact: What Does This Mean for You?
Let’s break down what this actually means for you as a real estate professional. The most significant change is that you can no longer display the seller’s offer of compensation to the buyer’s agent in the MLS. But that’s really it. This doesn’t mean that buyer’s agents won’t get paid or that buyer’s commissions are going away.
In fact, this change might make our jobs easier. If you’re already using exclusive buyer agency agreements, which I’ve been teaching for years, this won’t be much of a shift for you. And if you’re not using them yet, now is the perfect time to start.
These agreements are essential for protecting your commissions, your work, and ultimately your family’s income. The settlement simply makes it a requirement to get these agreements signed before you show a home. It’s straightforward: we’re now required to establish the agency relationship upfront, so there’s no confusion later.
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Addressing Concerns: What to Tell Your Agents
As team leaders and broker owners, you might be wondering how to address this with your agents. The key is to keep it simple and reassuring. Here’s what you can say:
Reassure Them: Let your agents know that this settlement isn’t as earth-shattering as it might seem. It’s just another piece of paper to sign—something we’re all familiar with.
Explain the Changes: Make sure your agents understand that the only change is where we can advertise the seller’s offer of compensation. Emphasize that they can still promote it in many other places.
Promote Buyer Agency Agreements: Encourage your agents to start using or continue using exclusive buyer agency agreements. These agreements will now be a necessary part of the process, protecting both the agent and the client.
Focus on Value: Remind your agents that their value lies in their ability to explain these changes clearly to their clients. The settlement is just another opportunity to demonstrate their expertise and build trust.
Why This Settlement Isn’t a Big Deal
Let’s put things into perspective again. This isn’t the first time we’ve had to deal with changes like this, and it won’t be the last. Over the years, we’ve seen numerous lawsuits and settlements that required us to adjust our processes. Each time, the industry has adapted, and we’ve continued to thrive.
This settlement is no different. It’s just a new rule that we need to follow, and once we get used to it, it will become second nature. In fact, I believe that this change could make our jobs easier in the long run. By requiring buyer agency agreements upfront, we’re setting clearer expectations with our clients, which can lead to smoother transactions.
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Looking Ahead: What’s Next?
As we move forward, it’s important to stay informed and adapt to the new landscape. The NAR settlement will require some changes, but they’re manageable. Here are a few things to keep in mind:
Stay Informed: Keep an eye on updates from the National Association of Realtors, your state association, and your local MLS. They will provide the necessary forms and guidance to ensure you’re compliant with the new rules.
Educate Your Clients: Make sure your clients understand the changes and how they might affect their transactions. Use this as an opportunity to build trust and demonstrate your value as a knowledgeable and experienced real estate professional.
Adapt Your Marketing: Since you can’t advertise the seller’s commission offer in the MLS, think creatively about how you can promote it elsewhere. Consider using social media, email campaigns, and other marketing channels to get the word out.
Embrace the Change: Change is a constant in our industry, and those who adapt quickly will continue to succeed. Use this settlement as an opportunity to refine your processes and improve your client service.
These agreements are essential for protecting your commissions, your work, and ultimately your family’s income. The settlement simply makes it a requirement to get these agreements signed before you show a home. It’s straightforward: we’re now required to establish the agency relationship upfront, so there’s no confusion later.
Brian Icenhower
Conclusion: It’s Going to Be Okay
In closing, I want to reiterate that this NAR settlement isn’t something to fear. It’s just another piece of paper in a business that’s full of them. By keeping things simple, staying informed, and focusing on providing value to your clients, you’ll navigate this change with confidence.
Remember, we’ve been through challenges before, and we’ve come out stronger each time. This is no different. So, take a deep breath, share this information with your team, and let’s continue to provide the excellent service our clients expect and deserve.
Thanks for tuning in, and as always, I’m here to help you navigate the ever-changing world of real estate. If you have any questions or need further guidance, don’t hesitate to reach out.
