Opportunities Post NAR Settlement 8.14.24 - Replay

Good afternoon, everybody.

Welcome, to another fantastic training. And, the today's theme well well, one, we'll start at four zero three to give everyone an opportunity to to join. But today, what we're talking about is opportunities post NARL settlement. And, basically, the concept of that is, you know, how do we use this change to actually drive fuel onto our business?

Instead of just saying, hey. I don't wanna slow down or, hey. I wanna navigate. I wanna say the same.

How do we look at this as an opportunity to create a better experience for our consumers? The North Star. Right? What we're always focused on and pointed at.

How do we use that this change to say, hey. I'm gonna help more. Because I'm an expert at this, I'm gonna attract more people to my business. I'm gonna be better at this process, which ultimately grows your business.

Instead of just looking at it as a, hey. How do I not get hurt? Let's let's flip the script a little tiny bit and say, how do we go how do we go faster? And so real quick, you know, we'll we'll make this more interactive.

We'd love for you to ask some questions inside of the chat. I know that people have had questions around like, well, hey. How do I how do I bring this up to someone whom I'm already working with? Or how do I explain it to someone who's a first time home buyer who I was already going to have to negotiate a seller concession to help with their down payment?

Those are real life scenarios that are gonna be coming up on your plate that you may not necessarily know what to do. Or how do you explain it to a seller right now who says, hey. I heard I don't have to pay the commission anymore, and I will sign at five percent. You know, like, there's all these real life scenarios that are gonna continue to happen.

And that's kind of the purpose of this two week marathon is to make sure that as we're getting up to the moment, you guys understand what's changing and you're prepared for that. But then as you start to interact in the real world as we actually click over to the change and you have questions and scenarios pop up that you weren't thinking about today, we're still here with a high support system of five classes per day helping you navigate the water. And, you know, just this morning, I saw someone write in there. Hey.

What does BBA stand for? Which is a fine question. Right? Like, we would hope that at this point, maybe you would know because we've been talking about it for so long.

But at the end of the day, it just shows that there's all these different levels of gaps in terms of people's understanding, and no tools that we have can get you past the basic understanding and your ability to communicate your value and your ability to explain it. And so we're gonna continue to focus on that and double down over the next, next week and a half. So with that being said, Robert, I'll just kinda turn it over to you to get your initial thoughts, and then we will jump in.

Yeah. Look. No. It's it's a big it's a big change we're going through right now.

Right? We've got all these individual state forms. We've got, you know, a lot of noise out there, a lot of people that are misunderstanding or, you know, not sharing right information. At the end of the day, our goal at LPT is to try to simplify this as much as possible so that you all can continue to do business and and then more importantly, win and thrive in the new environment.

And and I think that really is what this is all about. It's understanding, you know, how do we adapt to this new way of communication? How do we adapt to maybe the things that we don't see coming? Right?

Or we're trying to understand and and guess how others are gonna react, how sellers are gonna react. And that's this weird weird, like, situation right now because while certain MLSs have already removed the information from MLS, you know, all the rules have not gone into effect yet. Mandatory buyer broker agreements don't start, you know, until until Saturday, basically. And so I think we're really here to just have these ongoing conversations to help guide you through it because I think that the language and the communication around this is the absolute most important thing.

You know, the forms are there. The forms are there for every single state. Dotloop is there. We've gotten everything loaded into.

And look, your state brokers are teaching classes. You know, I think we had seven or eight today. The state broker classes are there. They're there to walk you through the individual forms in your state.

They're there to walk you through using dot loop to get those forms signed so that, again, if you if you wanna get something signed, you know, wet signature paper, that option's there. If you wanna use the dot loop esign, that system is there. But I think the most important thing is that we continue to have these dialogues because this is a communication business. Right?

The way you talk about this with your consumers is the absolute most important thing, and you've gotta be ready. And you've gotta pick up those little nuggets. And I I think one of the coolest things I've heard from a lot of agents that have taken multiple classes is they're getting little nuggets from every one of them. They're getting ideas.

They're they're starting to vibe and and really gel with how they wanna communicate this to their clients because there's a lot of right ways to do this. Right? There's some wrong ways, and we're here to make sure we don't we don't get that third rail and end up with a wrong way, but there's still a lot of right ways to do this and have these conversations. And that that's really what these conversations that we're having with you are about.

How do you then turn around and have the conversations with your consumers? Because communication is key. It is the thing that that the big portals can't replace us with. It's the reason why all of the, quote, unquote, small wall smart Wall Street money who has tried to, you know, get rid of real estate agents for the last twenty years, you know, going back to Redfin when they first launched have all failed because this is a personal business.

And so I think what we're most focused on as a brokerage is the personal business, right, which is tough for me because as a technologist, I wanna focus on the technology. I wanna focus on the shortcuts. I wanna focus on other layers of complexity where for this particular change, it is so critical. It is so big that the communication is the key.

And that's why we as a brokerage are focusing on those levels of communication, communicating with you, helping you communicate with your clients. And then, again, today's class and today's topic really is how do we identify those opportunities that are going to exist after, you know, Saturday. Right? The opportunities that exist as these changes are happening.

And and I look. I think that the biggest opportunities are going to come from your ability to adapt faster with the communication required. Right? Other agents that are gonna bury their head in the sand.

I think you're gonna see agents who try to communicate less. They don't have the right words. They don't know how to explain. They're not taking the time to learn.

Their brokerage isn't taking the time to help educate them on the psychology behind, hey. Here's how we think sellers are gonna be feeling through this. Here's how we think buyers are gonna be feeling. Here is how you go into your appointments and your conversations, listening and understanding how they're feeling, where I think a lot of a lot of consumers or a lot of agents may just kinda hide behind the paperwork or hide behind technology, hide behind CRMs, whatever it is, which is the total wrong move in my opinion right now.

This is a time to be a communicator. This is a time to be an educator. This is a time to to sit down with your clients, to have those deep conversations with your clients because we need to be their trusted resource as we navigate what is a change. Right?

Like, a a consumer who's been working with you, and all of a sudden they went from not having to sign paperwork to now having to sign this upfront paperwork. And while upfront paperwork shouldn't be a big deal, it's a change. And change can be scary. And then other consumers won't know anything about it.

Right? And they're just gonna come in with you and under the new way of doing business and understand they have to sign a bunch of paperwork with any real estate agent they wanna do business with. But the point of these five calls a day from LPT for the next two weeks is for us to have these honest conversations about what we're seeing, what you're seeing, and help put the words in your mouth and help put the concepts top of mind for you to be in a position to win with those consumers that you're meeting with.

That's awesome. That's that's so well said, Robert. I wanna just call out a couple of different things. So one, on our, eleven o'clock call, there there was this realization, kind of this awakening that was happening where people were breaking this psychology of saying, hey.

You know what? I'm actually worth more than whatever I was being paid before. You know, it started to go the opposite direction. We never really thought about it because you'd be excited if there was someone who was already paying three percent or paying four percent or a builder who was, you know, doing some type of bonus.

It had nothing to do with the actual value that you were bringing. And so we kind of use that as to be like, I'm only worth x y z. I'm only worth two and a half percent or, you know, I'm lucky if I get to the three percent. You know, like, that's the kind of mentality we were baked into.

And so at the call, we started having this realization when people were like, you know what? After all the things that I do, after all my expertise, after my ability to navigate all this stuff, I'm actually worth more than three percent. And so it was such a cool process to see that confidence being built. But I just wanna read this, this message that David received.

He said, it said, hi, David. This is, Leona, with LPT. First, thank you for the excellent training you're providing with LPT. The timing of this morning session was perfect.

I updated my buyer loyalty agreement and had a buyer consult at noon. He signed the elite. Woo hoo. I also added the clause for new construction purchases with the builder stating the commission up to five percent, and there was no pushback at all.

He was grateful to have a partner who prioritizes his best interest. So to me, this is such a amazing statement to see someone go out there who, you know, wasn't necessarily prepared this morning, took the training, was armed with the right things to say, the right confidence, and was able to go and say, hey. Listen. I absolutely will pay you five percent if we do new construction.

I think that is amazing, and we wanna see you guys have those same type of opportunities as well too. Let's break the mold of what we thought we were worth before and let's really define it for ourselves. That's one of the most beautiful things about this. And we know here at LPT, you guys are gonna be in the best position to explain that value.

And I've seen other brokerages put out things that try to explain it. Hey, we're gonna have this automatic video that goes out that explains it to the person why this is happening. That's not how it works. You are the most valuable piece of this equation.

If you have to send someone to a link to watch a video because you can't explain it, in my opinion, that that puts us in reverse. So that's just my opinion, but I think that you have to be armed to explain, to show your value because that is ultimately what is going to guide your commission checks as we move forward. So, Luis, I wanna turn it over to you. Norquis, I wanna turn it over to you.

She's our, newly appointed VP of agent culture and branding. How is this sitting with you fresh to to LPT? What what are you thinking?

Just super excited. I mean, the welcome the warm welcome I received from everyone has been amazing. I'm just excited to be here to collaborate, provide value, and just everybody can reach out to me if you need any assistance, if you wanna brainstorm, mastermind as to how you can keep elevating your business. So I'm here for that.

And just like you all said, you know, it's no it's no secret that everybody's facing these challenges because it's the uncertainty, what's gonna happen. It's something new that changes and all that. And it's just the the time for us to show our value, create the value proposition, like, enhance everything that you've done before. And like you said, some some of some agents did not understand the value that they provide, and they taught themselves as a two percent, three percent agent.

But what if you ask more? Negotiate. Everything is negotiable in this state, and it's you know, have a specialty in something, you know, that you are great at, you know, in education, what's your expertise, technologies, you know, anything that it is. This like Robert mentioned, this is a business person to person, you know, business.

So the bond that you create with your clients, that's something that nobody can take away from you. And they do business with you because they trust you and they like you. So that's huge right there. And once you provide the value and they see it, they'll pay for it.

They'll pay for whatever it is that you need. So it's a matter of negotiating and showing the value that you can provide and the assistance.

Yeah. I love how you share that example, Hodge, of that, like, realization from the earlier call that, you know, we could articulate now our commissions. Like, we no longer have this glass ceiling that has existed for so many years where, you know, from a buyer's perspective, we never had that forum to really go in there and articulate what our commission is, what our worth is, and how we can ultimately advocate for our clients. And that is one of the opportunity that gets unlocked, you know, post in our settlement.

You know, we now have a forum where the playing field is equalized, where now agents will collectively try to articulate their worth, and you can go out there and compete for that value. Right? And you have now that forum to be able to do so. But then these opportunities also come in multiple different layers.

You know, there's the layer of, you know, you're gonna have agents in this business that are gonna say, man, this is scary. I am hitting the abort button. I am not dealing with this for the next few months. Like, I'll come back when when the dust settles.

You know, that creates opportunities. You know, you're gonna come in here sleeves rolled up, working hard, attending these Zooms, learning the ropes, and you're gonna have that competitive advantage, you know, through other agents hitting that abort button. You're also gonna have other agents who are gonna say, hey. I'm not willing to adapt.

You know? I'm not willing to be nimble. I'm gonna kinda post, take it easy. I don't wanna roll up my sleeves like each and every one of you guys are doing.

And I will tell you they're going to have a difficult time. You know, I like to use this analogy. You know, it's the difference between approaching an island on an on a jet ski or approaching the island on a yacht. And that does not compare, you know, with how much business you do, but in terms of how willing you are to adapt.

You know, those on the yacht are gonna try to get to the island very comfortably. But what's gonna happen when they get there and things are changing and diff things are different, it's gonna be very hard for them to pivot once they arise arrive. But what about the person on the jet ski? Right?

You know, you it's a rough ride. You know, you're not sitting there drinking mimosas. You're having to jump over waves. Your sleeves are work rolled up.

You're working hard. You're gonna have the ability to pivot much quicker than those who are not willing at this time to adapt. And, you know, we're very proud of each and every one of you for attending these classes and, you know, hearing some of these thoughts. And it's, you know, ever living and breathing.

I mean, there are things that are coming hot off the press. You know, this is not a concept in which we believe that, you know, attending one class, you're gonna get all the information because we are all learning together. You know, I can tell you this just in the last twenty four hours, you know, just working with you guys and hearing the questions and getting the feedbacks. Like, we are learning different ways that people are looking at this.

And, you know, that is so important during this time for all of us to band together, work together, and cross through this checkpoint together because that's what's gonna make all of us stronger together.

Yeah. Absolutely. Okay. And make sure you utilize all the resources. We have those amazing state classes being taught by our our state brokers, our regional directors.

You know, they are going through your state specific forms. That's one of the interesting things about being a a a brokerage in, you know, twenty four states today going to thirty seven states. A lot of different forms, a lot of different documentation. There is no one size fits all.

You know, we saw Zillow come out, and try to release a document that they thought was going to be compliant in all the different states, and then they got attacked by, I think it was the Virginia board and a couple other states, and they ended up having to break their form into, like, twenty four parts because, real estate is a very local business. You know? And so we're at this phase embracing those local state forms. We're embracing Dotloop, amazing technology for you to get that in your customer's hands.

But again, the most important thing, is your ability to understand that. And so utilize those state classes. There's, you know, six, seven, eight, ten a day going on right now for the last for the next two weeks. You can find those inside of Connect.

They're going to take you through the the nuts and bolts. Everyone should know how to use Dotloop. Right? We've been using that technology to get our contract signed.

I think continuing to use an existing technology that we're comfortable with as we move into this new form set was really, really important. And then from there, we're here at these high level conversations, again, to talk about the strategies, give you those little stories, give you those little anecdotes, give you the things that we're hearing in the field, the things that we're seeing, how you should think about these conversations. Because, again, the the agent who is armed with the most knowledge, the most conversations, the right ways to explain, the right ways to help, overcome any type of confusion.

Right? Because, I've used this analogy a lot about the the defensive driver. Right? I'm in my car.

I'm driving. I'm following all the rules of the road, but some other driver comes and cuts me off or, you know, runs a stop sign or runs a stoplight. I have to try to react to that to stay safe. And we're gonna see that in our industry.

We're gonna see other agents who don't act accordingly to the new settlement and the new rules. They're not following new MLS rules. They're not adapting, and we have to be ready to pivot and react to that. Because when we're going on listing appointments, we're gonna be up against other agents, you know, potentially when we're talking to buyers.

Maybe they have an agent they met through a Zillow or through a realtor dot com or whoever reaching out to them as well. Maybe someone whose home search site they signed up on. We have to be ready to have those conversations, and that is the great opportunity that we have. By being armed with the right words, the right conversations, the right knowledge to go in there and build that relationship and build that rapport, And like Matt said, these are things that, you know, a pre canned video cannot do for you.

And and I think an agent trying to rely on tools like that is going to find problems because when an LPT agent shows up ready and confident, confident in their value, confident in their understanding of the settlement, confident in the different scenarios that may be being presented to that buyer or seller by other agents who aren't up to speed on things, that is the agent who is going to create the most opportunity. Because, again, change creates that opportunity. I lived in the mortgage business. A big part of my success was when Dodd Frank happened and very similar.

Right? We had to go to new sets of forms. We had to have forms signed upfront. You know, different different companies took different approaches.

There were companies who tried to overcomplicate it. We saw them fall flat. Those of us, like we did at my company, who relied on the interpersonal relationship, understanding how to explain, being transparent with our customers, explaining to our customers, being a resource for our customers, while also embracing that change and getting out in front of the change are the companies who won. And that is my vision for all of us here at LPT.

That is why, you know, we're investing all this time. You know, there were those of us, you know, yesterday, nine AM, we were on calls all the way up until ten PM last night, doing these Zoom calls with you guys. Same thing again today. I started my day at nine AM.

Hodge and Lewis the same. Norquist has been on lots of calls with us. Like, we are here giving our time because we recognize how important this is. And and rewatching video recordings is not the same as these real life organic conversations that we can have.

It would have been so much easier for us to sit down and cut one forty five, fifty minute session, whatever it is, and play it fifty times. That is not what we're doing. We are having fifty live sessions over two weeks. The highest level of commitment I could possibly make to you all from the leadership team here at LPT because I believe in a personal business like this, it is the only way that we're gonna get through this because the recording can't adapt.

Right? The recording can't react to the chat. The recording can't adapt to things that we're hearing and seeing because things that agents bring up to us on the ten PM call can then shape how we address the nine AM call and the eleven AM call and the four PM call and this living, breathing adventure and transition that we are on together. It was again, this is the LPT approach.

Right? We're right here in it with you five times a day for two weeks live because things are gonna shift. Things are gonna change. You're gonna get out there and have conversations, and you're gonna get a response back that maybe you weren't ready for, you weren't expecting.

You're gonna have builders or sellers ask you for things, that that maybe aren't required. They wanna see a copy of your buyer broker agreement. Should I do that? Should I not do that?

These are the real world scenarios that we're able to be here and help you tackle in real time, and I'm I'm proud of what we're doing. I'm excited about what we're doing, and I'm excited of the amazing feedback we've gotten from our agents who feel confident because that's the most important thing. If you leave one of these Zooms feeling more confident, feeling more empowered, feeling like you have the words to go have the conversation, that is the most important thing that I think we can provide for you during this two week period.

Absolutely. Absolutely. So real quick, I wanna open it up to the chat. If you've got any questions that are burning in your mind, let's let's see if we can talk to them.

Let's use this last ten minutes to talk to them. I love that call out, Miguel, around the ABR. So if you're not aware, ABR right now, the designation is free for all agents. So he was on a new, NAR Zoom, and they they presented that.

So, maybe we look at trying to get that information out to all of our agents. Maybe we can do a email blast. But the ABR designation is free through the rest of this year, and I feel like that is fantastic value. So thank you so much, Miguel, for for bringing that up.

But let's take a look. Let's see if there are any questions. If you have a question, you know, some of the questions that we've heard is like, hey. What happens if I have a two and a half percent signed with, a buyer, and then I take him to a place that's paying three percent?

What is the process to to go through that? That's a real life scenario. Right? Like, hey.

My person was only comfortable saying two and a half percent, but we end up finding new construction, and they're paying five percent. What happens to that additional five percent? Can I then just keep it? Does the builder keep it?

So, Robert, can you walk us through what that scenario would be? And then, what, you know, maybe how we would write that on the BBA to to accommodate for both scenarios?

Yeah. So the interesting thing is, you know, per the NARS settlement, the amount of the commission has to be objective. Right? You can't say, the amount of compensation will be however much compensation the other party is offering.

Like, that is specifically excluded. Right? So we have to be able to say, if this is achieved, we buy a home. This is the percentage or this is the flat amount.

This is the amount per hour. They don't get into how it's calculated, just that it can be calculated. So not everyone's just not writing in, you know, up to whatever the seller is willing to pay. And so the way that that we're we're kinda developing now for this for new construction is to basically write in for both.

You know? If if if it if you are purchasing a existing home, the commission will be three percent. If you purchase a new construction home, the commission will be five percent. You always have the option as the agent to negotiate down later.

And while you also have the opportunity to negotiate up with your consumer, that can get a little tougher. Right? To try to go back to your consumer and say, hey. I know we wrote an agreement at three percent, but I'd like to modify that agreement up to five percent.

There are consumers that'll probably do that with you. There are others that that may not love that and say, well, wait a minute. We agreed on three. You know, why should I pay you this extra money?

And so I think that, you know, this idea of specifically calling out for different types of properties, theoretically, you could call out different amounts at different price points. If we buy a home over a million dollars, it's two and a half percent. If we buy a home under a million dollars, it's three percent. These are variable ways for the compensation, but they are still objective.

And so we believe they would meet the requirements of the settlement because we're not just saying an arbitrary up to whatever it is. We're setting clear guidelines around different scenarios of homes that they may find. And I think that's a really elegant way to approach this so that you can protect yourself and you can protect your buyer.

I just saw something pop up on the chat here I wanna talk about. So virtual tours. So this is interesting. So there there are there are two requirements, okay, in order to trigger the necessity for the buyer broker agreement.

The first is working with. Okay? And so working with is basically to protect you against the fact that you're just sitting in an open house and and a client shows up. You're not working with that client yet.

Right? Now sending out MLS listings to someone and having a relationship with them and and looking for homes for them, this is gonna meet the working with definition. Now the second the second part of the definition is you actually need to enter the home with them or on their behalf. Alright.

So, again, I think Nara did a pretty good job here of setting two clear triggers that we can live within that I think prevents people from trying to get around the rules while also not putting us in a bad situation. So if if you are just sending someone pictures of the home that were taken by a photographer, taken by a listing agent, you have not personally entered the home either with them or on their behalf. And so while that may meet the working with test, it does not meet the definition of touring test because you haven't entered the home on their behalf. So you can absolutely continue to send out listings and photos and alerts and things that you're getting from the MLS or from a third party because until you actually enter the home either with them or on their behalf, you are not considered to be touring.

And on the flip side, if you're just in the home with them because you're holding an open house and they show up there while you've now met the enter the home with them, requirement, you are not yet considered to be working with them. Now where it's gonna get tricky is if you are working with someone and they show up at your open house unannounced, that is going to meet two triggers. And so you're gonna wanna get a buyer broker agreement in front of them at that moment. But again, these are these are the little things that we have to really, really clear on.

And again, this is the description from NAR in the FAQs. Working with and then also touring, which means entering the home on their behalf. So, yes, if you go to the home and you're gonna do a Zoom tour live, you have entered the home on their behalf, that is going to qualify as touring. And again, because you didn't just happen to meet with the property, you're clearly working together.

So before you would do that video Zoom tour, you would need to have a buyer broker agreement or some other type of touring agreement signed. Right? But if you're just sending someone virtual tours and links and photos, you have not met the enter the home, the touring part of the requirements. So again, this is in an RFAQ.

It's something we're talking a lot about, on on these Zooms and on these calls for the next two weeks is making sure you understand the two triggers, to make sure that you have the right the right documentation.

The other hot topic is the touring agreement. Alright. And look, this is something we've studied a lot. You know, this is something that that I think from a a standpoint, it's good to have.

But I also I don't wanna encourage agents to become too reliant on it. If you are able to get a full blown buyer broker agreement signed with your customer, that is going to be the best route. That's gonna protect you the most. That's going to create the right relationship.

It's going to address a lot of parts of the relationship. Is this an agency relationship? You know, is it an exclusive relationship? What are the terms to cancel the relationship?

I think getting all that out of the way as early as possible and potentially in the first document with your consumer is very important. But then a lot of states and again, Zillow has a form, and there's forms in dot loop that you can use for this looser touring agreement that's less of a commitment. But know that in most cases, you're still gonna need to go back and get a full blown buyer broker agreement signed as well before you go under contract because that that loose touring agreement, while it's easier to get it signed, does not provide all of the protections for you or the consumer that a full buyer broker agreement does.

And then a lot of states have come out and said that that those touring agreements are not are not legal in their state or they've gotta make massive modifications to the touring agreement in their state. So then other states have created their own touring agreement. We're in this weird place right now where everyone is trying to get the documentation right. We've made the decision in our state level classes to focus on the documents that we know have been promulgated by the states and we know are accurate and ready to go and give you the most protections possible.

But, yes, absolutely. Our LPT wants to to create more opportunities, more forms, more technology, but we also don't wanna muddy the waters in this period of this two week change where we just really wanna focus on arming you with the knowledge you need to go out there and win and continue to do business with your clients.

Okay. Let's look into a couple quick questions. Sorry, Lewis. I wanna just grab, two things real quick.

Is one, Karen says, can you amend the buyer agreement up when the builder is at five percent when you or the buyer, you know, find out that indeed that the builder is going to pay, so they're not stuck with it? I wanna know if they could amend it. And, again, this is a perfect example of why these live classes make sense because there's you know, we've answered this question quite a few times, but there's always someone new who's coming into the fold. So, Lewis or Robert, can you walk us through, what that would look like in the scenario that, hey.

I've got a two and a half or three percent buyer, you know, buyer agreement signed. I'm going to a place that's paying more commission. What steps do I need to take to ensure that I can, you know, accept that five percent?

Yeah. So, look, again, you you can amend, but the the buyer needs to sign that document. And so that really is you know, that's the potential issue. Right?

Well, you can say, well, hey, buyer. The the builder is willing to pay this, so you're gonna sign here. It's not costing you anything extra. There are there may be buyers that say, well, wait a minute.

Couldn't I have that money? Why don't you know, can't I get that money? Couldn't you rebate that money back to me? There are potential questions.

So, yes, you absolutely can amend up. I think it's there's some risk there. Right? Because the the buyer the consumer is not always necessarily just going to blanketly agree to that.

They may have an objection. They may ask questions where if you address it upfront, if you address it in the original buyer broker agreement with one amount of compensation for existing construction, one amount of compensation for new construction, you know you're covered. You can absolutely amend up. You just need to make sure that the buyer is going to cooperate there.

You may have to answer some questions about how that works. Okay? So those are are two things to consider. And then, yes, any any bonuses paid by a builder are still just commission.

Right? So if the builder says it's three percent plus a five thousand dollar bonus, that total amount is what the buyer needs to have agreed to. And so just by them calling it a bonus doesn't mean it's not commission. Any income that we receive from a builder, from a seller is considered commission.

And so it's that total amount that's going to need to be equal to or less than whatever you agreed to with the buyer in the most recently executed agreement. Louis, anything you wanna add there?

Yeah. No. I just wanted to point out. I mean, that was excellent. That's exactly it.

Right? Like, you always run the risk if we are looking to, you know, amend the agreement with our customers. It's always great to do it upfront. But that's where, you know, Robert in the in the previously had indicated that other nugget where we can overcome that, objectively ascertainable requirement in the NAR settlement by maybe in the outset creating those criterias.

You know, if it's new construction, then this compensation, that sounds like it would satisfy the NAR rule. You know? If it's secondary market, then this compensation. You know, it's gonna be interesting to see some of those tactics kinda come out.

And, you know, there's an example of a nugget that I think that was the first time we've shared it. You know? In the last seven, eight calls that we've done, there's a brand new nugget, right, that we're able to drop here today. And that's why it's so important to keep doing this in real time because all of our minds I mean, we are constantly thinking about this throughout the day.

We are constantly collaborating with all of our agents, and we're constantly hearing different types of success stories during these moments. And we are able to now in real time share them with you. And here's what I would encourage and empower all of you to kinda consider as we're going through these two weeks. We're gonna enter with the first how to.

Like, how do we survive in the new post NAR era? You know, the post NAR settlement era. But at some moment, once we understand the intricacies, once we understand how our state forms work, etcetera, let's now start transitioning into how do we now go into that new era and use it to create new opportunities.

And I will say this, a lot of agents would just stop at that first step. You They're just gonna try to figure out what are the requirements, how do contracts have to be written. Okay. Perfect.

I get it. Good. I'm done. I'm good to go. But take it that one next step further.

Now I understand that, and I understand that there will still be pitfall that I can expose.

How do I now use those pitfalls to create opportunities for my business practices? And that is the step that a lot of agents will not continue down that path. And a big part of, you know, hearing or or creating some of those opportunities is being a part of these calls, guys. We can't encourage you guys enough. Attend as many of these as possible. There's new information that's gonna be dropped, new nuggets, maybe even as simple as different ways that, you know, things may be said, you know, during different classes that may resonate a little bit better. You know, it is very powerful for you to, again, transition from the how to to now it's time to create this opportunity postnar.

And a couple things in the chat.

Sorry.

Go ahead. Real quick, Morgan. It's a couple things in the chat. I see a question.

If if the builder's only or the seller's only offering two, my BBA is for three, you would absolutely ask for that extra one percent in the form of a sales concession. This is one of the nice things. We control our own destiny now. So we're in the old under the old rules, if the seller was only paying two, you were really stuck at two.

Where now you can say, hey. I see your I I see you've got two included in the price, but but I need one more percent for my buyer because they've agreed to pay me three, and that can be done in the form of a concession.

Mary Miner brought up the potentially in Texas.

Their form does not allow for the the two different compensations. Again, this is where we're all gonna try things, and then they may be challenged. They may not similar to the Zillow form, similar to other forms. You know, I I think we're gonna talk to legal counsel and say, hey.

Can we write it in as an addendum? Can we write it in as extra comments? Can we use a secondary form that may not be the exact, you know, state form? But this is where we're discussing these high level concepts, but then again, it is so important to be a part of your state level classes because, yeah, there may be certain states that do or don't allow these things.

And at the same time too, as we go through the transition, there may be things that maybe at first glance we think a state doesn't allow, but we're gonna dig deeper and we're gonna have those conversations with legal. We're gonna have those conversations to understand, on what they're going through.

Debbie, I well, our understanding is you absolutely can get commission from the concessions.

You know, seller concessions can be used. You know, they can be designated, you know, kinda globally where they can be used for closing costs or commissions. They can be designated just toward commissions. There's a a lot of opportunity for language there in the actual sales contract. But, yeah, we we have we have deals right now where the seller is giving concessions that are then going toward the buyer's agent commission. Not a lot under the old set of rules within AR, but now absolutely allowed in our interpretation, where we are going forward. So, again, if if there's a two percent, you know, commission being offered and you need three, asking for that extra one percent as a concession in the contract would be the route to make sure your buyer is not having to come out of pocket for it, and you're not having to make, any type of concession or reduction that isn't necessary.

Again, I was just gonna piggyback of what you guys said is having setting up that expectation, having clear transparency, having those conversations with your clients, and they know that, you know, this is the value that you provide and then, you know, underpromise and overdeliver. And it's okay to amend up. And if you I would start high and then amend down. That would be my my position here.

Yep. And one question came up. How do you do that? They're saying to use an addendum.

So what do you do? Do you execute a new BBA? Does an addendum that you would normally attach with a sales contract that that does it? What is the actual mechanics of how to amend the addendum?

The the BBA.

Yeah. This may vary by state.