T
he National Association of Realtors (NAR) settlement has shifted the way compensation is communicated in real estate transactions. To succeed in this new landscape, agents must be transparent with clients about their value proposition. This approach can help close deals and ensure agents get paid.

    Since 2006, the Swanepoel Trends Report has provided insights into the residential real estate market. The following excerpt highlights key strategies for brokers and agents to adapt to the post-settlement world.

    To reduce risk exposure, the industry must become more consumer-centric. This requires a fresh perspective on cooperative compensation and concessions. Brokers and agents can communicate their ongoing value by rethinking strategy around these areas.

    Both seller's and buyer's agents play a crucial role in educating consumers about market realities. Seller's agents should help clients understand how high home prices and interest rates affect buyers' affordability and the impact of seller concessions on financing fees.

    Buyer's agents, on the other hand, must present prospective clients with a comprehensive consultation outlining their services and value. This includes detailing their experience, skills, and attributes that support their worth. Specialized services they can highlight include:

    * Identifying common condition issues

    * Recognizing red flags during showings

    * Managing appraisal gaps

    * Understanding zoning regulations or HOA restrictions

    Buyer's agents should also explain the process of negotiating with sellers related to closing costs and concessions, including the buyer agent fee. This approach emphasizes how leveraging their expertise can help buyers achieve their goals.

    Brokers should develop a company standard practice for these consultations and train their agents on how to present them effectively to buyers.