Terms of the recent NAR settlement go into effect today and have introduced significant changes in the real estate industry, particularly in how commissions and fees are handled and discussed with clients.
There has been a ton of media coverage surrounding this topic, with a fair amount of misinformation from journalists who don’t normally work in the real estate space and have no context for the things that have happened.
That means your consumers, who don’t necessarily understand the way the industry has worked in the past, are frequently getting their information from ill-informed generalists.
You, on the other hand, are a real estate specialist and you’re the one who needs to be communicating with leads and clients about the way things work now. Here’s how to discuss the settlement along with 10 creative ideas to keep your clients informed.
1. Start with a simple explanation
“Hey [Client’s Name], you might have heard something on the news or on social media about the recent NAR settlement. It’s basically a change aimed at making how we handle my professional services, including commissions and fees, more transparent. The goal is to ensure that everything is clear and fair, so you know exactly what you’re paying for.”
Example:
If a client is selling their home, you could say, “The settlement means we’ll now provide more detailed information about how the commission is structured. This helps you see exactly what’s going to whom and ensures there are no surprises at the closing table.”
2. Explain the impact on commissions
“With the new changes, you might notice that commission details are more upfront and clear. This means you’ll have a better understanding of how commissions are set and how they might be negotiated. It’s all about making sure you know what’s happening every step of the way and that you understand that you have a say in how much you pay.”
Example:
For a buyer, your purpose is to communicate and agree on how you’ll be paid. For a seller, your purpose is to communicate and agree on marketing strategy, including whether they’ll choose to offer any type of concession at closing that might be used to offset the cost of a buyer commission. Your role here is to educate, not to persuade. Lay out the options, and let them take the lead.
3. Highlight the benefits
“The best part about this settlement is that it’s designed to benefit you by providing more clarity. You’ll know exactly where your money is going, which can help you make more informed decisions all the way through the [buying/selling] process.”
Example:
Affordability is the watchword for many clients right now. Make sure they understand that the settlement changes are designed to make sure that costs and processes are better communicated to consumers. This is meant to be a win for them, so treat it that way when you communicate.
4. Reassure them of your expertise
“Even with these changes, my role as your agent hasn’t changed. I’m still here to help you navigate the process, answer your questions, and make sure everything goes smoothly. I’ve got all the latest info on the settlement and how it affects us.”
Example:
Clients don’t necessarily want all of the ins and outs of the legal background and how the settlement might affect your financial situation. They also don’t want to hear a lot of complaining or talk about why the settlement or lawsuits are “unfair.” They want to understand how the settlement affects them and to ensure that you are up-to-date on the latest changes.
5. Prepare for common questions
“I know you might have some questions about how this will affect you. Common ones I hear include how it impacts the final costs and what changes you’ll see. Feel free to ask me anything — no question is too small.”
Example:
Make sure that you have thoroughly read up on the settlement and that you have educated yourself. Consider role-playing with a colleague to ensure you can answer any questions that come your way. When in doubt, ask for time to find out the answer instead of winging it.
6. Offer additional resources
“If you’re interested, I can share some resources or articles that explain the settlement in more detail. It’s always good to have all the information you need to feel confident about your decisions.”
Example:
It might be a good idea for you to prepare a written guide for clients and potential clients to review. Download NAR’s version below and share or use as the starting point for your own branded handout:
7. Keep the conversation open
“Remember, if you have any more questions or need further clarification as we go along, just let me know. I’m here to help and make sure you’re comfortable with every step.”
Example:
Welcome follow up questions and send along added information if requested.
10 creative ways to communicate about the NAR settlement
To keep your clients informed and engaged, consider these creative communication strategies:
1. Create a video library
Develop a series of short videos explaining different aspects of the NAR settlement. Each video can cover a specific topic.
2. Write a detailed blog post
Publish a comprehensive blog post on your website detailing the NAR settlement, its implications, and answers to common questions.
3. Host a webinar
Organize a live webinar to discuss the settlement, answer questions, and provide insights.
4. Create infographics
Use Canva or work with a graphic designer to create infographics that simplify the information about the settlement. Share them on social media or in email newsletters.
5. Send a newsletter update
Include a section in your regular newsletter updating clients on the NAR settlement and its impact.
6. Offer a Q&A session
Set up a dedicated Q&A session where clients can ask questions about the settlement.
7. Develop a FAQ page
Create a dedicated FAQ page on your website with answers to common questions about the settlement.
8. Share client testimonials
Share testimonials from clients who have navigated the settlement process with your help.
9. Host an informational workshop
Organize an in-person or virtual workshop to explain the settlement and discuss its implications.
10. Create a social media series
Run a series of social media posts covering different aspects of the settlement with engaging visuals and straightforward language.
Discussing the NAR settlement with your clients doesn’t have to be daunting. By providing clear explanations, emphasizing the benefits, and utilizing creative communication methods, you can ensure your clients are well-informed and confident about these changes.
In the days ahead, we'll continue to get more clarity. Make sure you're keeping your consultation talking points and your content plan up-to-date as things develop.
Your role in guiding buyers and sellers through this process is more important than ever, and these strategies will help you maintain trust and clarity throughout their real estate journey.