It’s time for part 2 of our thoughts on the proposed NAR settlement. In this follow up episode to our SPECIAL BONUS episode released 3/27, we are giving more of our thoughts on how these changes will affect us and what we can do to prepare. Alissa is giving us her 3 conversations to have NOW. Want to find out which of the 3 response groups you are in? We’ve got descriptions of how reactions seem to be going right now. We discuss more specific scenarios and further clarify some of the terms of the proposed settlement and what they will mean logistically for buyers, sellers and your business. We are sharing what you can control and how to take steps to continue to succeed and thrive in your real estate business. Visit facts.reatlor for all the specifics on the lawsuit, proposed settlement, timelines and more.

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The following is a rough transcript provided by Otter.ai.

Katy 0:01
they’re gonna want to work with me because well why not? Who

Alissa 0:03
doesn’t want something for like free stuff? Yeah, right that doesn’t completely make sense to me. I think I’m gonna go for six months to a year. Now we’re going to start working expired buyers. We’re gonna have be HBs okay by House by sale.

Katy 0:27
Last time I did BB BB remember?

Alissa 0:31
Oh my gosh, how crazy would that be? Hi y’all welcome to hustle humbly. It’s Alyssa and Katie and we are two top producing realtors in the Baton Rouge market.

Katy 0:42
We work for two different companies where we should be competitors. But we have chosen community over competition. The goal of our podcasts is to encourage you to find your own way in business to stop comparing yourself and start embracing your strengths.

Alissa 0:53
Hi, Alyssa. Hey, Katie. It’s

Katy 0:56
episode 244, which is gonna be part two to the bonus that aired on March 27, which we’re calling episode 242 and a half. Yes. And that will be my complete. My,

Alissa 1:11
my contribution,

Katy 1:12
that’s extra food. Thank you my contribution to this episode,

Alissa 1:15
I think you’ll have plenty to contribute. So in our bonus episode, I do recommend you go back and listen to that first if you had haven’t. Yeah, it wasn’t aired on a regular Monday. It was an emergency bonus episode. It was a Wednesday after the nor settlement announcement. And a little bit after some of the dust and headlines had settled. Yeah, we were doing research thing. What? And then we just kind of talked it out. Yeah, it’s not a it was great timing

Katy 1:38
that you were out of town and we couldn’t knee jerk respond like we take a week because I definitely like you said in that episode, you had to go through the five stages of grief to get to the point where you were ready to talk about it. I

Alissa 1:52
think I went through all five stages in the bonus episode.

Katy 1:55
I would I would say that’s accurate.

Alissa 1:57
Totally Accurate. Okay. So this part two, I think will be more about just okay. It’s been talked about, yeah. How many episodes? Have you listened to trainings? Have you done sales meetings at your brokerage? Have you read Sanken email list?

Katy 2:11
I’m on there. It’s coming out of the woodwork.

Alissa 2:14
So this is going to be more about just we’re moving into the acceptance phase. And understanding why this is actually beneficial and helpful for the real estate industry and

Katy 2:26
choosing to focus on that. Yeah, absolutely.

Alissa 2:28
Like a choice. So a few points that they made that I thought was helpful is that what is going on with the buyer representation agreements, listing houses all of that? It is not it does not have anything to do with the market. Right? This is not a market crash, right? This is not 2008 through 2010. Right? This is not March of 2020. When the world shuts down, and nobody knows what’s going on. I feel like 2024 is sort of the beginning of our first back to normal, stable market, right COVID. And it’s actually a great time to implement some changes. It really is. Because everybody is on the same playing field. This isn’t happening to you know, or to your company. No, this is happening to our industry. Yeah. And it’s better that it’s happening in a stabilized time. Oh, yeah. I mean, can you imagine trying to implement this during 2021? With all the bidding, go, sorry, whatever agent brings me the best house wins, like, no goodness, no, that is over. So I thought that was a very good point that what’s happening right now the market is fine. Realtors are having to make changes. Yeah, buyers and sellers are moving right along.

Katy 3:56
I’m glad you said it that way. Because I did have a note from last time that we didn’t get to about what happens to buyers and sellers. And the truth is nothing. I mean, like they some of the process might change. But for the most part, when you think about it, if you’re only buying a house now the average is 10 years, between people changing homes. They don’t remember the process. It’s not going to be weird to them. It’s only it’s only a change for you. And

Alissa 4:22
also starting with first time homebuyers. They don’t know you’re educating them on what it means to buy house right and how this works and what it’s going to look like for them. They don’t know, you know how some of my most memorable favorite transactions are the ones that had a major problem that I was able to fix. Great. Yeah.

Katy 4:43
And at the closing table, like you really earned that money. Yes.

Alissa 4:47
And they saw the value of having a professional, right. Same situation here. It is our job to manage these opportunities. It’s our job to overcome these hurdles. Yeah, and make it only more delightful for our clients. With Yes, our sellers know now that the people that are coming into their home, the ones that have chosen to work with agents, the sellers that have chose to have a listing agent,

Katy 5:14
right, like now and the rest of the people can’t come into their home unless you as the listing agent have done whatever your due diligence is going to be right, correct. Yeah. So it’s either they’re coming with an agent that they have a signed agreement with, or they’re calling you the listing agent, and you can vet them however you you see fit or your seller has asked you to write. Yeah, so that’s kind of nice, too. Yeah,

Alissa 5:37
this is making us more valuable. Yeah, certainly not less valuable. Now. In fact, I was trying to think of it as reverse. Okay, let’s say they say two scenarios for you. Okay. First scenario, number one. We’ve always had buyer representation agreements, you cannot show a house in some of these markets out there are like da that we’ve always had them. Right. Okay. Right. But I do think even the markets that have had them, sometimes they didn’t eat anything in the letter. Yeah, yes, we have received some information about even in the areas where it’s mandatory. It’s like, look, just sign this. But

Katy 6:14
with you just wrote on me, I did, or they sent it with the offer. Yes. So they were just doing it for compliance. They were not doing it as an actual part of

Alissa 6:23
the process as a required prerequisite. Whichever house exactly, it

Katy 6:27
wasn’t a requirement for them to show the house, they were just like, Oh, I gotta get this, it would be the same as me getting my agency disclosure signed, when I sent the offer, when I’m supposed to get it signed at first substantive contact, which would have been maybe when we met for the first showing, which is how I normally did it, or when you like, had your buyer consult. However it was, yeah. Okay. Carry on.

Alissa 6:48
So imagine we’ve always had our buyers secured like this in this way, and you have never shown a house without having a representation agreement signed. Okay. Now they’re taking it away. Right? You’re like, wait, what? How? So they can just call any agent and ask to see a house? Like, hadn’t that gonna work? Yeah, that agent can just show the house like no, but what if they were my client? Well, you’re at the mercy of your buyer and better tell them not to Yeah, and it always made me sad, you know, you know, sorry if there’s any consumers listening here, but sometimes, buyers get the reputation that buyers are liars. Oh, they do? Yeah. And I don’t necessarily think that’s fair. I think buyers are eager to get into a home and they don’t understand how the process works. And they don’t have a realtor explaining it to them.

Katy 7:35
Buyers are not liars. Buyers are misinformed or completely uninformed. Yes, that

Alissa 7:40
is so good.

Katy 7:41
They just no one took the time to explain it to them. Because again, I will go back to my original sentiment, which is, I think, many agents, not you necessarily who’s listening, but many agents just rested on their laurels. And we’re like, well,

Alissa 7:55
the system is set up that you’re and I’m gonna get paid. Yeah, I’m just gonna like so. I’m gonna get paid, but I’m gonna tell my buyers. I’m firm hurry, and then they’re gonna want to work with me because well, why not? Who doesn’t want something for like free stuff? Yeah. Right. Exactly. Everybody wants that free cheeseburger, right? Yes. Yeah. Okay. Yeah, give it to me. I think that this is good. Okay, second scenario. Okay. Let’s pretend everything stays the same. But they are doing away with listing agreements. I mean, how did he put yours? I mean, I don’t even know how that would work. You’re not protected at all. There is no going behind the sign. There is no sign you ask a seller if you can host an open house and, like do things for free. But then the neighbor comes in buys it and you’re out. Yeah. How awful would it be to lose a listing agreement as a requirement? Well, yeah.

Katy 8:47
Okay. So I don’t have all the details of this. But I was watching the show that I highly recommend on Netflix called the Parisian agency. Oh, it is a real estate agency. In Paris, France. It is in French. So there are subtitles, but it is good. It is a family owned brokerage mom and dad started it. She was like a retired teacher. They start this great luxury real estate company. So when we watch it the beach, yes. Okay. Then there are the four sons who all participate in the office and now they started hiring agents outside of it. Okay. My point is, I’ve learned just a little snippets here and there of how real estate works, I guess, in France or in Europe, but it’s more like, they go to a listing appointment. And they’re like, do we get the mandate or whatever they call it? And they’re like, sure, but it’s only if they find the buyer. So it’s like dual agency. It’s like the house isn’t listed the signs in the yard. It’s just like, yeah, we’ll sell it. This is how much we’ll sell it for and we’ll let you make money but you’ve got to go find this the buyer now, right. And I’m like, this is fascinating.

Alissa 9:51
Yeah, it is like dual agency. Right. That very interesting.

Katy 9:56
I don’t know like here if you were just like there’s no listing agreement. I don’t even I don’t even want to live in that world. Right? Yeah. How does the seller? Are we all able to just show up with a buyer? Is that what happened?

Alissa 10:10
Right? Or do I have to say I have a buyer, but I’m not bringing them unless you agree that if I bring a buyer, It’s craziness out there. Okay. It just goes to show how many different ways people operate.

Katy 10:24
Yeah. And in different countries, they do it differently, too. So it’s not like it’s impossible to change. We just happen to have worked in this previous system that we created. And

Alissa 10:33
on that note with contracts, okay. They made an excellent point that with the listing agreement, it has an expiration date, right, you have to reach out to that seller before it expires, and have that conversation that never ending. We have to do that. Now, with our buyers. We didn’t even think about that. Because your buyer representation agreement is only good for a certain amount of time, you have to put a timeframe in there. Okay.

Katy 10:56
In the current real estate market, sort of levelized I guess, how long would you make that? Well,

Alissa 11:02
I was assuming you would make it at least six months. Yeah, my default would have been a year same. But more people are talking about it being like two months. That doesn’t completely make sense to me. I think I’m gonna go for six months to a year. I have buyers that I’ve been showing on and off for a

Katy 11:22
client who I’ve been showing houses since July. Yeah. Maybe only one a month.

Alissa 11:28
Yeah, not all the time. But when something pops up that meets the criteria. Once that makes no sense. It doesn’t make any sense to me, but you are going to it’s not like MLS, where it sends you a notification that your listing is going to expire next week. No one is reminding or logistical problems. Yes, no one’s reminding you. So you every time you get a buyer representation agreement signed, you’re gonna have to mark a calendar set a reminder, do

Katy 11:53
you think they’ll become because we talked about policing a little In last episode? If buyer representation agreements are required, and before you can see the house and we don’t know, let’s just say it’s being required by the National Association of Realtors. So it seems like your local board would be the policing agency of that. Do you think they’re going to have you register a buyer on some type of database where you then have an expiration date? That’s when trying to

Alissa 12:22
figure out that you can like check the search and be like, Oh, seven, so

Katy 12:26
it’s already got an agent just like, see if a house is listed? Right. Could not be like up Suzy Smith. She’s working with Alyssa. Yeah, she’s

Alissa 12:33
already signed expires in

Katy 12:35
December.

Alissa 12:36
Oh, my gosh, how crazy would that be? Now we’re going to start working expired buyers. I don’t think I would want an expired buyer.

Katy 12:46
Oh, no, thank you. But really, if you play it all the way out? Isn’t that

Alissa 12:52
how you That is so funny. Yeah, I didn’t even think about that. I met expired.

Katy 12:56
Buyers Prospector. Yeah. Okay, what’s your next point these every time we get into a new topic, I feel like it’s Pandora’s box. It’s a little bit more open. And I’m like, Oh,

Alissa 13:09
yay. Okay. So there is going to be a good bit of fear mindset that agents are going to have to overcome during this transition agree. The thing to remember here to combat that fear is that the use of a buyer consultation and a buyers representation agreement is that it is going to differentiate the buyers from the lookers. Yes. Okay. If they are a buyer, a real buyer that has to buy a house and is ready to buy a house, they will come in and sit with you, and the lender and the lender. They

Katy 13:45
will do because you can’t that’s like me pretending like when people say oh, they’re such a great salesman, they could sell ice to an Eskimo, I’m not trying to convince anyone to buy a house, you’re not ready, don’t this is a big deal. You have to get pre approved. And now you got to sign my representation agreement. And you should feel like it’s a big deal. Just like when you go to list your house, you kind of know that means you got to move. Yes, it’s

Alissa 14:07
going to happen, guys, it’s going to happen that you are going to give your pitch that you have been mindset training for on getting that buyer into a consultation and presenting that agreement and it is not going to work out. Yeah, it’s going to happen. Just like when you go on a listing interview and don’t get the list. You might lose the buyer just like you lost bids. It’s the same thing. But the point that they’re making is we have got to take the opportunity and realize how much more time we’re about to be given back to us by not wasting it. People who are not ready or willing to do what the right to do. Forcing us out of scarcity mindset it is because it’s like, well, if you want to buy a house, this is the process. This is what we do. Yeah, consider it getting your freedom back. Absolutely. Yeah. And this is also only going to make our job that much more safe. Yeah, there is no more pop tart. I’ll show you all the houses even though I don’t know you at all right like that is coming to it is going I’m sure you’ll still see bad behavior out there, right? Because not everyone follows the rules, right? Not everyone follows the rules of listings either. But I know that all of the people listening to this episode are the agents that care about their industry care about their business and want to be professional. Yeah, so it’s only going to help those netball for I hope there is a policing agency, right?

Katy 15:34
I hope there is a place where I’m like, Well, my buyer is has been registered in the database. Yes. And then everyone’s gonna do it, because they’re like, well, shoot, I gotta put the listing and assistant just like, I gotta put my buyer in this, like, you don’t get upset, because you have to put your listing in a system. That’s how you claim it. Correct, it’s mine, it’s in the system, the buyers gonna have to go in there too. And then

Alissa 15:55
if at the end of six months, the buyer is not pleased with you, as a realtor, they do not have to renew and work with, you

Katy 16:03
know, and look just like I’ve always told my sellers, you, as the person originating and contract can make terms, I always have told my sellers, if you want to cancel this in a month, you don’t want to work with me anymore. I’m not gonna force

Alissa 16:16
you. Yeah, I don’t want to work with you. If you don’t want to work with me, I don’t want for

Katy 16:19
hire the same thing. We’re doing this for six months, because it’s been taking that long to find houses in your price range in this current market. But if in a month or two, you don’t want to work with me anymore. You don’t want to buy a house, we can cancel. I’m okay with that. Yes. And here’s what happens if we cancel. And again, give them the information, talk them all the way through what happens if you cancel some companies will say you can cancel the listing agreement, but you have to pay a fee. So I will say, I don’t have a fee. Yeah, you just tell me it’s canceled. Right? We’ll sign the paper by.

Alissa 16:52
And I also think that too, they were saying that 91% of buyers are anxious to buy a house without an agent representing them like that would make them anxious. Yes. The thought of not having like, No, thank you. Right. Okay. That’s a great step. And I think about you know, the buyers I’m working with currently isn’t there’s two or three in particular that keep coming to mind that I think if they did not have me, and they were having to make all these phone calls, and coordinate with all these different people, right? Oh, my gosh, they would give up. They’re not made for that. No, no. And then there’s a few that I’m like, they don’t care. They don’t care. But But buyers are risking their own capital to buy a home. They are very serious. Okay, lookers just want to see the house. They’re in the dreaming phase. They’re not ready to do any homework, you’re not ready to actually go in. You’re not ready. If you’re just a looker to kick someone out of their house. Yeah, make them clean, make them excited that they might actually be moving on to the next chapter of their lives by giving them hope of a showing only to ghost them later. Right. Like, if you’re in that phase, we don’t need to be going inside of homes yet. Yeah, have some homework to do first agree. So there’s three conversations that we need to be having during this time. Okay. Okay. The first one is with yourself. Right? What am I telling myself? This is an easy challenge.

Katy 18:16
This is an easy challenge. That’s what I’m saying. This is an easy challenge. I’m thankful for

Alissa 18:22
this. I am thankful for that. I am to believe it or not. What did oh, I am a master of change.

Katy 18:30
Oh, see, look, I’m so proud of you for coming up with a real solid affirmation. I

Alissa 18:35
know, when I was like, hey, these can like this app. Are for change or of change of change. I’m a master of change. Yeah. Oh, yeah. Changing my middle name changes.

Katy 18:46
Changes my middle name, okay. So

Alissa 18:48
we need to be checking our mindset. Okay. The second one is with your sphere of influence, okay. They have maybe not bought yet or may in the future, but they need to hear from you. Okay, one at a time. Oh, they need to hear you matter to me. And with all of the changes going on, I am here to listen and provide you with the facts. If you have any questions. I have had a few good friends of mine, who have been following the news that are not in real estate. Okay, I haven’t had that many to be on, right. But there’s a handful that have just messaged me to be like, hey, just want to check on you all this stuff in the news? Like, are you going to be okay? And I was like, hey, absolutely. Thank you so much for checking on me. In fact, this is something I am pretty excited about. I have always operated my business from a professional standpoint. So the changes that will have to be made are minimal and exciting. I don’t think it needs to be this whole oh my gosh, it’s so crazy out there right now. Like how are you speaking to the public? That is not in real estate? Yeah. Because if you run your business like a business and you’re confident in the boss that you are of your own Business, it is our job to just convey Yeah, those things. And then the third conversations we need to be watching is with our peers and colleagues. One, we need to check on them. There are people struggling with all of this a lot, a lot are a lot of fear, especially those who have a lot of fear around their finances and how this is going to look for their family. We need to be encouraging each other. We got

Katy 20:25
a lot of messages after the first bonus episode that were like, thank you so much. I needed to hear this. There’s so many angry and like fear mongering agents out there. So we’re trying to be a voice of positivity and not fake positivity. Like, what’s I actually just go? Yes,

Alissa 20:43
this is happening. Yeah. And there are several bright sides to it. Yeah, that can only if our number one mission has always been to bring professionalism back to the realtor brand. This is a huge step in the right direction agreed. Once the bad press ends and things are just implemented, and I think

Katy 21:00
I’m nervous about is if the if these governmental agencies decide this isn’t enough,

Alissa 21:05
I know see, we are still at a point as the as of the airing of this episode. We are not sure if the governmental agencies will approve the proposed settlement, right.

Katy 21:17
And here’s my if they’re in gold, if their ultimate end goal is to decouple commissions. Right now, the seller is still allowed to pay, according to the settlement, if the government decides that they’re not, that’s what I’m like. Y’all need to stop posting these memes that show the work around the stupid, how we’re going to hide the words in the description of the three apple trees in the back yard, you better believe that there’s a bunch of people in the Department of Justice who are trying to see how, how are we going to respond to this? Are we going to make the changes we’re supposed to are we going to implement it correctly, swiftly? Because, again, we have to implement a lot of this in July, but the final approval isn’t until December, right? So don’t you think they can be like, You know what, we gave you a chance we were waiting to see what you did and you just found a workaround. That’s the same system.

Alissa 22:12
So here’s what I think there are some sellers say say they decide sellers cannot pay a buyer’s agent no matter what, under any condition. No way. Not allowed. It’s illegal. It’s fraud. Okay, fine. Just like we have sellers that maybe cannot afford or choose not to hire a realtor. Those are called FSBO is for sale by owners? Correct. Okay, we’re gonna have be HBS. Okay, by House by sale. Last

Katy 22:39
time I did BB BB. Remember? We’re

Alissa 22:42
gonna see I just made that up. But we’re gonna see a new category of people. That’s like, How many times have you as a realtor received a message from a friend that says something like, Hey, if you have any buyers keep me in mind. I just posted my house for sale by owner. Yeah, my good luck. Yeah, great. Wonderful. Good. Good. Do you Okay, usually, we may start receiving similar messages. Hey, I’m buying house. I’m just doing it by myself. But if you see anything coming up in Prairieville, like, let me know. How would you respond to that? Probably the same way that I respond to some of the for sale by owners like, Okay, congratulations. Good luck. If you decide you need representation. I’m here for you. Okay, good. I like that. That was a good way to handle it. Yeah. Like no, I’m not going to the amount of digging I do for my buyers. I cannot donate any spare energy right to people that want it for free. Like it just actually doesn’t make sense. It would be like a stockbroker from a company that I’m not even working with reaching out to me to be like, Hey, I just wanted to be friendly and give you some stock to give you some stuff this stock is gonna happen. You need to know about it. Like no, I’m not paying you. They’re not gonna give me that courtesy call, right? It’s just, it’s, it’s making us more valuable. Right. And that is why a year from now, I think that if all goes how it’s looking at might go that we might be thinking thanking the DOJ for sort of implementing these changes, okay. But there are three parties right now. Okay, there’s three different people. So now

Katy 24:14
I’ve had three conversations. Yes. One with myself, one with my sphere and one with my colleagues. Okay, now I’m on to the three parties. So

Alissa 24:21
we’re gonna go on to the three categories of these people, okay, that you’re going to be having these conversations with. Okay. There are going to be the catastrophize errs attached. visors, like zooms day or yes, the Doom stays prime crash. They’re not be you Well, I guess they are prepping Yeah. Like this is awful. This is terrible. The sky is falling. How is the industry going to survive? The industry is going to go away. I’m just gonna quit I have nothing nice to say about it. Okay, look, even if you’re trying to provide some encouragement, you can lead a horse to water you can’t make it drink. You need to maybe just put say your piece we don’t need To be around these people at No, no, no. And if it’s a really good friend of yours, you need to be like, Look, I’m doing my best to handle myself in a professional manner. And I may just need a break from talking to you on this topic. What if it’s your broker? You may need to switch brokers, I think this is that series, we need to go back and listen how to change brokers. Oh, yeah,

Katy 25:18
we’ll put it initially. No, I think that comes out the week after this. Oh, awesome.

Alissa 25:23
Next week, you need to listen in if Volker is a rapper, we have an episode for you. Next week, there you go. The second one deniers, oh, they’re like, I’m just not really listening about this. I’m just gonna keep doing my thing. These are the ones that are likely, even after things are implemented going to get their representation agreement signed, when they send the offer to their buyer. These are going to be the ones that just are doing everything to resume as they’ve always known it, the resistors, the resistors that are just not on board with this. They’re just not really talking about it. And they have their head in the sand and they’re like, I’m just going to deal with it when I have to. What if that’s your broker? Then you need to listen to next week’s episode on how to change brokers.

Katy 26:08
I actually did receive a message after one of our recent episodes are Yeah, I think the one on the bonus, you’re like, my broker is still in complete denial. Oh, my word. Like they were in denial before. Like they were just ignoring it completely. And now they’re just like, in denial, like, head in the sand.

Alissa 26:28
What is going on now will bring anybody out of denial?

Katy 26:31
I would think it’s here, but it wasn’t yet. Yeah. And it hasn’t happened yet. Well, as we’re airing this, my broker said she was going to our local boards meeting today that was about this. Oh, good. So I’m curious to hear what they tell her. But good news. My broker was going to the meeting. She wasn’t like this isn’t happening. Yes. She’s

Alissa 26:52
like, let me find out better if I know. The third category is the ones that will thrive. I like this. They say I will adapt. Okay, not only will I adapt, but I will get better at the things that matter. And I’m going to let go of the things that don’t take. This is easier said than done. I realize and I think the more you do it, it’s only going to be more comfortable and get easier and become more natural. Okay, you’re gonna fumble through those first couple of conversations. I certainly did. Right. But

Katy 27:23
I think where maybe we haven’t talked about this yet. If a buyer comes to you, and they’re like, but why do I have to buy it pay you? Why didn’t pay you before? I think we can all say you paid the total of the house. And the seller paid you commission from the total you paid you were paying me it wasn’t a free cheeseburger, it was basically all financed in two years. And there you did pay it came from your mortgage, I still don’t believe a buyer is going to show up and say that for the most part because they don’t know how it works. Right? You’re just going to tell them. This is how it works. Okay,

Alissa 27:55
I am the boss. Anything else about the thrivers? No, just that those are the three categories and we really need to be mindful of what we’re listening to. Who we’re spending our time with. You are the company that you keep,

Katy 28:06
right. Well, I’m not don’t give your energy to shouting at the rain. Right. Like it’s already happening. What’s the point?

Alissa 28:13
Are there parts about it? I disagree with Sure. Is it happening anyway?

Katy 28:16
Yep. Am I gonna repost any of the memes? No, no, no, no, no, I don’t care if I do think it’s funny. Yeah.

Alissa 28:24
Maybe I’ll laugh at it and move along. Yeah, I’m not gonna post it. Yes. And now they’re just making me mad, correct? Yes. So we you know, what, what can we control at this point? Brokers must be communicating with their agents. Agents must be communicating with their sphere. These are the top two. Yeah, things that we can control that we should be focusing on. Because when they are not educated, they make up their own story. Yeah. And it’s gonna be negative. Yeah, no one’s gonna make up a happy fairy tale about these headlines. We as the professionals need to override what is going to bed we need to be the voice of what’s going on. Yeah, not the news. Not the people that don’t have a real estate license. We the realtors need to be the ones that are writing the narrative on what this looks like. Yeah, one person at a time. What

Katy 29:19
is your take on the social media posts from agents that are positive, but they are explaining what is going on? Do you feel like it is too soon to explain? Because it seems a little unsettled at this point. Like it’s not approved? It’s a proposal. I

Alissa 29:37
think it is too soon. Yeah, until we know with certainty what’s happening. Also, someone messaged me and said that they had shared like one of the funny memes about all of this going on, and it made them realize how many people that follow them

Katy 29:54
even know what it was like. Yeah, that’s what I’m trying to I guess she said

Alissa 29:58
even my mom was like, what do you do? talking. Yeah, like what I didn’t understand what you posted. Yeah. And it just as a reminder that while this feels very consuming temping for us, it is big for us. Like they said, buyers and sellers are resuming as normal.

Katy 30:14
They’re starting to buy and they still need to sell and 89% of them still want to work with an agent. We think. I mean, well, time will tell.

Alissa 30:21
I have a situation right now where a past client that does not live here, but bought a condo for her daughter, that goes to LSU. She used me to buy that condo, she does not live here. She lives in another city. Okay, messaged me and said, Hey, I am buying the family home from my siblings. So my mom has passed away, I want the house. None of my other siblings want the house. But it’s also not going to be the smoothest thing because we don’t have the best relationship. It’s a little bit messy. So she was just asking me a question about something. Well, she messaged me again, when all of this came out and said, Hey, my sister is pushing back on the price that we have agreed to, because one of the things that was factoring in was the fact that there weren’t any agents involved. So she would be saving on commission. Well, now that we now that we don’t have to pay any buyer’s agents, now that we’re not allowed to, she wants to, you know, compensate for that the she wanted to close the gap of the difference.

Katy 31:29
I’m so glad that you were sharing this story. I know, it’s such a case is what I have been saying yes, sellers are not going to suddenly list their house for X percent less because they aren’t paying the buy side. Now. That’s why Great, we’ll go into this. That’s why all these headlines that say this will push down the house of prices. I want to ask every reporter who owned a home who posted that if they go to sell their home and they decide not to pay the buyer’s agent because they’re so jazzed about it. They don’t have to. Are they planning to list their home for X percent less? No, no, no. So who stands to benefit? Sellers? Yes. And how did y’all handle this in your situation educated her?

Alissa 32:17
I said, Well, that is actually not what just happened. Sellers are at this time, nothing has been enforced. And even if what is proposed is enforced, there are still going to be sellers willing to pay buyer’s agents. So what she is saying at this time is irrelevant, right? It has nothing has changed at this moment. But

Katy 32:40
look how quickly that they are not a leap. Y’all know, they still said, Well, you got me the comps of my look at let’s say, so for sale by owner. And they were like, hey, my aunt’s like I’m gonna for sale by owner, could you give me some comps? Fine. Here, here’s the report. And she goes, Okay, my house is worth I see here $250,000? Well, I’m not using any agents. So I guess I’ll listed for X percent less? No, if she refinanced it, it would be worth $250,000. Correct. If she had got a divorce and had to split the proceeds, it would be worth $250,000. No one takes out the Commission’s

Alissa 33:17
No. And because even an appraisal, yeah, let’s talk about justed. Plus, like even the final value that the appraiser puts is still adjustable within a certain range. You could have five appraisals and they would all be different. If we were making 1020 30% on a sale, right? This would be different. But when we’re talking the smaller percentages, it’s not necessarily going to affect what an appraiser would appraise the house answering

Katy 33:49
this question. I think I’ve seen this before, but I don’t want to speak incorrectly on an appraisal when the appraiser is pulling the comps they’re going to use they do say if it was listed or not.

Alissa 34:01
They do and they also share if concessions were paid meaning how much closing costs. Were they within a typical customary market range? Or was it excessive concessions? Again, there’s no final answer on how this is going to change for appraisers. My dad was saying that, you know, how if if buyer compensation is being taken out of the MLS, but being posted somewhere else, appraisers will need to know that. Yeah, so I think it’s going to be factored into a point. But how much is it really going to? It’s not going to change a seller and what they ask no. And I think we all know if an appraiser is close, it’s easy. It’s appraisals fall apart the most Yeah, when there’s a big gap Yeah. Us being paid isn’t going to change that know if it’s a tiny gap versus a big gap, okay? So the appraisers are also having To figure this out, just like the lenders are having to figure this out right? At this time at the airing of this episode, we are all figuring it out with the professional mindset that we’re still here to help buyers and sellers. So the bottom line is buyers and stoat sellers still want an agent to help them.

Katy 35:20
They didn’t just say, Oh, goody, I never wanted one anyway, and y’all made me right. We did not. Okay, what’s what’s got next? So it’s really

Alissa 35:29
going to be in our delivery. Right as we are having all these conversations we just talked about with all the different people and all the different ways. If we anticipate pain, it’s going to reflect Yeah, in the deliver if you

Katy 35:43
want it to be painful, it will be painful.

Alissa 35:47
Ah,

Katy 35:47
well do you want to put it send them back to the fax dot realtor, I see it on your page there. Yes,

Alissa 35:52
if you fax that realtor is an excellent place to go. This is a resource, it is a resource. They are updating it as things proceed and move along. If you are looking for the facts and trying to understand how this is going. Even if you have clients like the one I have messaged me and say, Well, now that sellers can’t pay buyer’s agents anymore. That’s not true. You can even give them this resource. Yeah, x dot realtor, they need to understand that they are being misinformed. Yeah, we need to be writing the narrative of how this is going and representing it as professionals in the best light possible. Yes, because it is actually a positive. What will

Katy 36:32
we do? Will you send an email to your sphere? You know, you said you wanted to have a schedule conversation? I haven’t

Alissa 36:38
quite decided what that looks like just yet. Yeah, I think it could start with a very casual, simple, friendly email to my database that basically just says, Hey, friends, there’s been a lot of changes in the real estate industry. as of this date, some laws have been changed on how we conduct our business. These are not laws. I think that’s, I’m not that I’m trying to like, yeah, so they’re not laws, it’s not laws. And that’s where are some policies, there are rules.

Katy 37:08
That’s why it’s feels hard to explain to the public now, because it’s not a law change in real estate world. Right. It’s

Alissa 37:15
a the law, it’s a rule change, a rule change with an Iowa State permission, nor a rule change by a Trade Commission has been made on how real estate agents can conduct business. Yeah, thankfully, I operate from a very professional standpoint, I have systems in place. I am excited about some of these changes. And I think it will only make the industry more professional. If you have questions. I am here. And maybe

Katy 37:41
I feel like you need to put in there. I am still serving buyers and sellers. Yeah. Know what you need to tell them buyers and sellers are still able to use me as their agent.

Alissa 37:51
If you were at a place where you know you were kind of done slinging houses and looking to retire by not ready all the way. But just a little bit. Do you think you’d be like, at this time? I’m only serving sellers? Like, do you think we’re gonna see that? So

Katy 38:07
funny question, because I already kind of do that. I know. And I’m going to tell you all from my perspective, because this didn’t cause me to have this change just because the podcast takes so much time. Yes. I have never been happier in my career. Do I sell as many houses no by design, but I simply say these are the rules of working with me, because I’m not taking as many clients and I’m not out here pounding the pavement trying to find more clients. Yes, do I also know how to filter that and that when I was full time, and this was my only source of income, I would probably have a different perspective and maybe a little more anxious anxiety. Sure, just about implementing the changes and potentially losing some business. I don’t. I’m just telling you from the other side, I now approached my clients. I tell them I’m like I’m only working with past clients and referrals and depending on the location where they want and I am more focused on seller’s

Alissa 38:58
correct. And I think we’re gonna see certain agents. I mean, there are already agents that are just buyer’s agents.

Katy 39:07
It just I’m going to tell you if you’re not splitting your focus by worrying about getting every single client in every single way and it when you start implementing those types of professional boundaries that say look, I can only work with buyers that will pay me x, I can only work with sellers that will do this. It really just makes it so much easier to move on.

Alissa 39:27
I keep thinking of like for the actual visual of like gold mining, like shaky, shaky, shaky, shaky shaky all the dirt fallen out, look at the shiny gold. These work these were these work, these are the ones I want.

Katy 39:39
And as long as you’re okay with the transitional period, maybe being a lower income year. You will come out on the other side with processes and systems that you feel confident in and that bring you the clients you need. Yeah, and ideally, I’m going to tell you from where I’m at now, I don’t sell as many houses but I don’t have I need to stress about it.

Alissa 40:00
Yeah. And I love that, like, that’s why I think we are so good at being able to discuss things, even when we feel differently because we are at different places in our career, you’ve been doing this longer than me, I’m still like, over here in the trenches, pulling in buyers and sellers and like, figuring all of this out. And so it’s helpful for me though, because you talk me off the ledge so much. And then also, while remembering the reality of like, what this is doing to the industry as a whole is a very big deal. And we don’t want to discount that. We’re gonna see all sorts of people make different decisions, different changes and how they operate this

Katy 40:38
this moment of, can you survive and thrive? Correct? And if you do and can, you are going to be fine, you’re

Alissa 40:46
going to be better. Yeah, you are going to have more time, but in a better way, because the things that you’re working are gonna stick, the more spaghetti on the wall more is gonna stick if you are implementing the right changes. And

Katy 41:00
remember, 49% of agents in 2023 sold zero or one home buy. So it’s okay. Like, if you’re listening and you sold more than one home, I don’t think you need to work like it’s the people who were fed. The hobbyist are gonna go,

Alissa 41:19
Yeah, I would not want to do this as a hobby.

Katy 41:23
I mean, I like a house, but not that much. Yeah, I’ll just get one some like it builds

Alissa 41:28
doors and designers. So I’m thankful for this. Me too. I think it can only strengthen our industry. The seller side has been pretty tight, zipped for a long time. And we’re just tightening up the reins on the buyer side now to match. Yeah.

Katy 41:47
Make it make sense. Does it make sense? Make it make

Alissa 41:50
sense all about to make sense. So I hope this was helpful. I’m feeling good about it. Thank you all for listening to the first bonus episode where we were working through getting to the point Yep, does

Katy 42:00
right. Just start talking through it? Yeah, just

Alissa 42:02
talking through it. You know, there’s so many good resources out there. We could talk about this. Right. And I don’t want to go on and on. I don’t

Katy 42:09
think we’re at a place yet either to give exact best practices, like say these words, do this thing. Use this document. Right. But we’ll get there. Yeah, well, we’ll be here for you along the way. Guys, so humbly Sacco in and once we have an impact, because I feel like it is so much of it is just conjecture, like what’s going to happen, like in the reaction of the consumer? Sure. Once we have a few interactions, then we’ll, we’ll figure it out.

Alissa 42:32
It’ll be fine. Okay, that’s it. Okay, bye. Bye. Oh, yes. Okay, so coming up is a toast from now our next.

Speaker 1 42:38
My name is Ken Dylan and I am from Surrey, BC. I am toasting to my mum. My mum is my mentor. And she actually got me into this industry back in 2006. And honestly, I still go to her for advice. She’s out of the business now. Cheers to my mom for getting me into this industry that has allowed me to become who I am today. Thank you. Thank

Alissa 43:08
you so much for tuning in to the hustle humbly podcast.

Katy 43:11
If you enjoy this episode, please go to rate this podcast.com/hustle humbly and leave us a review or drop a comment if you’re listening on Spotify.

Alissa 43:19
If you have an episode topic or someone you’d like to toast on the show, please email us at team at hustle humbly podcast.com

Katy 43:26
Find us on social media at hustle humbly podcast. Don’t forget to find all of the free resources at hustle humbly podcast.com/resources See you next week. This is the good lie.