Hanging in the balance

Without a doubt, this was an unbelievably eventful week in real estate. It’s not hyperbole to say the future of our industry hangs in the balance as we await the final ruling in the Sitzer/Bennett case.

We’ll recap the latest details below, but as we await further developments, we’ll remind you to focus on what you can control. We work in an industry where there are always changes happening week to week, and that’s very true right now. We can’t change that. What matters is how we react. 

As always, we will keep you posted with our take on all the latest in this case, and this massive issue facing our industry.

- James and David

On Tuesday, the jury in the Sitzer/Burnett case concluded that the National Association of Realtors, along with other major real estate brokerage firms, conspired to inflate and fix home prices by enforcing the cooperative compensation rule. Here’s what else the jury decided, and where the case currently stands.

• The jury awarded $1.785 billion to the plaintiffs in damages. 

• The damages amount could change because the judge has the discretion to lower the amount awarded by the jury. Following the verdict, NAR filed a motion requesting this.

• In the next few days, the judge is expected to issue a ruling that could mandate immediate changes to the real estate compensation system as it currently exists. Since Sitzer/Burnett is a federal case, the ruling could have nationwide implications.

• NAR, Keller Williams, and the other defendants have vowed to appeal the verdict

As we reported last week, real estate cancellations are occurring at the highest rate in more than a year. This is already having real-world consequences for some agents in the field. To stay ahead of this troubling trend, and help your clients navigate this situation, here are some tips on how to handle cancellations.

Lose the deal, not the client – For various reasons, clients might sometimes want to kill the deal. They might get cold feet before they have to sign the dotted line. It happens. But while losing a deal is an unfortunate part of our business, losing a client doesn’t have to be. That’s why it’s key to have a reset meeting where you go over any concerns your client may have. Talk through why the deal went sideways and reset expectations. Use this helpful guide to walk through those conversations.

Provide clarity for your clients – Typically, cancellations are the result of uncertainty and confusion. That means, as agents, we’ve got to provide clarity, guidance, and assurance to our clients. Make sure you have answers to any questions that might arise. What’s going on in the market? What’s happening with rates? What does Fed policy mean for home buyers and home sellers? Be specific and support your answers. Remember: they’ve come to you for advice because they need it.

Never let your pipeline go dry – To ensure that cancellations don’t negatively impact you and your business, make sure you never let your pipeline go dry. The number one job of any agent is to find potential buyers. Over the next six months, try to add one to two people to your pipeline every day. 

For more excellent tips on how to beat cancellations, start here.

For Blueprint subscribers, the course is 30% for a limited time. If you’d like to take our course to learn how to become the top 1% of your market click here!

That’s a wrap on this edition of The Blueprint!

Remember: each day is a gift and a new opportunity to lead the life you want and to become the person you want to be. The mistakes and missteps you’ve made in the past don’t define you. Live as intentionally as you can and be ruthlessly focused on the goals you’ve set out to achieve. You can do it!

Thanks for reading, and we’ll see you back here on Tuesday!

- James and David