T
he deadline for implementing practice changes in our business is fast approaching on August 17th. In my communication with clients, I am emphasizing the importance of hiring a real estate professional who can provide value for their transaction. This is a crucial point that all real estate professionals should use to strengthen trust with their clients.

    As we approach this deadline, there are several things you can consider:

    1. Changing Your Compensation Model: The beauty of our industry is that we have the freedom to create a compensation model that works best for us and our clients—as long as it adheres to local laws and broker approval. You might consider offering à la carte services or a choice between full and limited service, for example. We'll likely see a variety of compensation models emerge or become more prevalent.

    2. Countering Objections to a Written Buyer Agreement: If you haven't used written buyer agreements consistently before, your clients may have questions about their purpose and why they are necessary. After August 17th, the written buyer agreement must contain information about your compensation and how that compensation will be paid. It should also outline your role as a real estate professional and what you will do for the client. This is a great opportunity to explain your value. Touch on three things that a written buyer agreement clarifies for the client:

     - The scope of your work

     - The type of representation the client agrees to (exclusive vs. nonexclusive, agency vs. nonagency, etc.)

     - The amount of compensation you will earn (make sure that the compensation provisions and disclosures concerning compensation follow NAR’s rule changes).

    3. Mastering the Compensation Conversation: You do not have to work for free. Be transparent about your compensation and communicate your track record, experience, and specific expertise. This is supporting evidence for why consumers should choose you—and why they shouldn't choose another agent. This is a conversation you have to master over time, so be prepared with your talking points.

    4. Aiming Higher for Referrals: Focus on building strong relationships and delivering exceptional service to position yourself as a preferred agent among your clients—regardless of compensation.

    5. Helping First-Time Home Buyers: You have an opportunity to be of even greater help to first-time buyers following the practice changes. Many first-timers can't afford an additional fee for their agent, so they'll look to you to help them figure out a way forward. This is where you can lean into client education, which demonstrates your value. Real estate pros need to help their buyers understand that they will do everything possible to find a scenario where the offer, including compensation, works for the seller.

    6. Approaching Negotiating Compensation: The amount of compensation you negotiate with your clients will depend on several factors such as the relationship with the client, market conditions, time on market, or the complexity of the transaction. Offering value-added services and creating tiered pricing models can be effective strategies to justify the fees while still delivering exceptional service to your clients.