Surviving Nar settlement

The Giant Opportunity The NAR Settlement Creates For Buyer’s Agent Compensation

What if the normal rate to for buyers agent compensation is 1-1.5%? Could you survive based on your current business? How would you generate income as a buyers agent post NAR Settlement? While some in the real estate industry are freaking out about the NAR settlement and buyers agent compensation, I see lots of opportunity. Now Before you get angry reading this, please consider the following:

Regardless of what happens with the NAR settlement, the real estate industry is taking a PR hit.  Between the media constantly throwing Realtors under the bus in news headlines and more sellers wanting to “test” the waters of not offering a buyers agent compensation, change is here.

There are lots of opportunity when things like this happen, but it will require you to think outside the box. Your personal brand and relationship you have with your local community and database is more important than ever.

Real estate agents are not going away, there is a need. However, what consumers want from their agent will change. You need to be ready to change with it.

What nobody is talking about is how can you survive as a buyers agent if you see a serious cut in commissions?  The good news is that these are only a few ways you can receive buyers agent compensation in the future.

3 Mental Shifts & Ways To Be Compensated As A Buyers Agents Post NAR Settlement

Surviving Nar settlement

Whenever there is a paradigm shift in anything, there is a lot of opportunity to change with it. Here are some additional ways you can be compensated without having to fully rely on listings. Buyer agency isn’t dying, it’s just changing.

1. Create Additional Revenue From Ancillary Services

There are many companies right now that want to partner with buyers agents for referrals.  If the NAR settlement changes the amount of compensation you can collect from buyer commissions, then part with a Solar company like Renewable Real Estate, who have a Realtor referral program and the commissions are juicy.  No, you do not need to become a solar salesperson, you just need to add solar to things you sell.  Solar is one of many ancillary services that are willing to pay you for referrals.  

Your clients are going to be buying or using these services anyways, so wouldn’t you rather be the one that gets paid and making sure they are buying something worthwhile or a good investment?  Real estate agents have always been great connectors, but they haven’t been great at getting paid for it.  

2. Get Your Mortgage Loan Origination License

There are many mortgage companies right now across the US that you can be paid legally as a real estate agent. This could make up for an additional .5-1% in the loan amount but you would need to check further with them.  Of course there are some fine details to this, but essentially you are not legally able to get paid for referring a lender whom you trust.  In my podcast, I make a reference that if the NAR Settlement completely disallows buyer agency commission or credit paid from a seller, this could very well be the future of buyer agency.

3. Become a Principle & An Investor

The future real estate agent will be good at two things in particular.  The first is good at relationship building and marketing. It’s more important than ever to have a solid book of business for referrals and repeat clients, but that doesn’t meant you don’t prospect. It just means you prospect smarter.  Investors are really good at finding deals even in the hardest markets.  If you were to become a good investor, you’d have to be good at finding deals and 90% of the deals you find will turn into listings.

However the 10% of those deals you find will be great finds for you to take down. Instead of looking at making 5-10,000 on a commission you might start making $40,000+ on a flip. In addition you could build a rental portfolio of cash flowing real estate over time.

In all 3 of these instances you are forced to evolve into another income stream. None of them would have happened if things didn’t change.  Change can be good if you know how to change with it.