In the wake of the recent NAR settlement, the real estate industry is buzzing with mixed emotions. From uncertainty to optimism, agents across the country are grappling with how these changes will impact their business. The crux of the matter isn't just about the changes themselves but about how agents perceive and respond to them. As the old adage goes, "Whether you think you can or you think you can't, you're right." This mindset is more critical than ever as we navigate this new landscape.

The Three Camps of Real Estate Agents

When discussing the NAR settlement, we can categorize agents into three distinct camps:

1. The Anxious: These agents are worried about the impact of the settlement on their income and livelihood. It’s a valid concern—real estate is a career that directly impacts one’s financial stability, and any disruption can feel threatening.

2. The Unsure: This group is sitting on the fence, unsure of how the changes will play out. They’re continuing with business as usual, planning to address the fallout when it happens.

3. The Prepared: These agents have done their homework. They’ve analyzed the potential impacts, developed a strategy, and are confident that their business will not only survive but thrive in the new environment.

The interesting twist in all this is the number of seasoned, high-performing agents who are choosing to exit the industry altogether. The fear of change, even without fully understanding its implications, has driven some to retire early. This opens up a unique opportunity for those who remain, as the client base once served by these agents will now need to find new representation.

Embracing Change as Opportunity

Change in the market isn’t new. Whether it’s a shift in how homes are sold or how commissions are structured, those who view change as an opportunity tend to come out on top. This is true for any market shift, and the NAR settlement is no different. The agents who see potential rather than peril will be the ones who thrive.

The Commission Conversation: A Tactical Approach

One of the most pressing questions in the wake of the settlement is whether sellers should still offer a buyer agent commission. The conversation isn’t easy, especially when sellers are being told they no longer need to pay it. The key is to approach this with a strategic mindset.

When discussing commissions with sellers, it’s important to frame the conversation around what matters most to them: their net profit. For example, if a seller receives two offers—one a lowball cash offer and another at full price with a request to cover the buyer’s agent commission—the decision should be based on which offer nets the seller the most money. The focus should always be on the bottom line, not on the commission itself.

This approach also applies to negotiating terms. Just as in the past, when sellers were often asked to cover buyers' closing costs, today’s agents should prepare their clients for the possibility that they may need to cover the buyer’s agent commission. It’s all part of the negotiation process, and being upfront about this with clients can save a lot of headaches down the line.

The New Norm: Buyer Consultations and Authentic Relationships

One of the most significant shifts we anticipate is the increased importance of buyer consultations. In the past, agents could get away with less formal introductions to their services. Now, with the changing landscape, it’s crucial to have a thorough buyer representation agreement in place from the get-go.

The agents who will excel in this new environment are those who can confidently explain their value, secure a signed agreement, and set clear expectations with their clients. This isn’t just about protecting the agent’s commission—it’s about ensuring that clients understand the full scope of what a professional real estate agent brings to the table.

Disruption: The Constant Threat and Opportunity

Over the years, the real estate industry has faced numerous disruptions, from the rise of Zillow to the advent of iBuyers. Each time, there’s been a wave of panic, followed by a realization that the core of the business remains the same: relationships.

In the wake of the NAR settlement, we might see new models emerge—perhaps an Uber-like service for real estate showings or a rise in flat-fee buyer services. However, history has shown that these models often struggle to sustain themselves because they lack the deep relationships and comprehensive service that traditional agents provide.

Building a Moat Around Your Business

The key to long-term success in real estate has always been relationships. The best way to protect your business from disruption is to focus on building and maintaining strong connections with your clients. This means staying in touch, offering genuine value, and being the go-to expert in your market.

Agents who excel at this understand that it’s not just about closing deals but about being a trusted advisor who helps clients navigate the complex world of real estate. As we move forward, the agents who invest in these relationships, backed by efficient systems and authentic communication, will continue to thrive no matter what changes the industry faces.

In conclusion, the NAR settlement is just another chapter in the ongoing evolution of real estate. By shifting your mindset to see the opportunities rather than the obstacles, and by doubling down on relationships, you can ensure your business not only survives but thrives in this new environment.