Open Houses & Scripting for Post NAR Settlement Success
Welcome to the new real estate world! The new rules imposed by the National Association of Realtors (NAR) settlement agreement have now officially gone into effect!
I hope you’re excited. That’s right… excited. With these shifts come a chance to redefine your business.
Above all else, open houses are one of the most important strategies you can employ to generate new leads, build trust, and expand your database. Why? That’s what I’ll answer in this blog.
But before we dive into the power of open houses, it’s important to take a look at what we’re dealing with and how we got here so we can fully understand the picture.
What is the NAR settlement?
I know you’re already familiar with the specifics, but let’s take a moment to revisit. The NAR settlement is an agreement that releases over one million NAR members and associated entities from liability related to broker commissions while establishing new rules to enhance transparency and consumer choice in real estate transactions.
This stems back to a class-action lawsuit which began in 2019 regarding buyer commissions. The plaintiffs alleged that the existing commission structure and cooperative MLS model was anti-competitive and harmful to consumers – essentially, that agents could conspire to inflate commissions. On March 15, 2024, NAR agreed to a $418 million settlement and accepted a set of new practices which have now gone into effect.
This agreement allows real estate agents to move forward with a clear path, mitigating the risks associated with previous commission structures.
What Are the New Real Estate Rule Changes?
While there are several new laws imposed by the NAR settlement agreement, the most significant is the removal of compensation offers from the Multiple Listing Service (MLS). This means that compensation arrangements for buyer brokers are no longer displayed on MLS listings. Instead, these negotiations will occur directly between buyers and their agents, promoting a more personalized approach.
The second biggest change is one that many agents across the country have already been dealing with for a while… Buyer’s agents must now get an exclusive representation signed before showing even one home. No more freebies!
That may seem scary to a lot of you, but there’s one little concession to this rule which can set you apart from the competition: the power of open houses.
Why Open Houses Are Your Most Powerful Post-Settlement Strategy
Open houses are the ONLY way you can show a property without a signed agreement. This alone is enough of a benefit, but the strategy here is to attract new leads, expand your database, and secure multiple agreements (for viewing other properties).
All that is before we even get into the impact that open houses can have on sellers. More on this soon….
Post-Settlement Open House Strategy No. 1: Create an Experience
We can’t talk about open houses without bringing up our Rockstar coaching client, Stephanie Younger.
Stephanie’s team of 35 agents did an incredible $340 million in volume and $8.1 million in GCI last year – a large portion of which can be attributed to open houses.
"Open houses are like merchandise displays. Every open house means your store is open for business. And the more your store is open, the more leads you get."
Just like any store, the atmosphere you create is essential. Stephanie has created a checklist for each of her agents to complete for creating their brand’s signature experience. Her open house strategy might be worth millions of dollars, but she was generous enough to share it with everyone free of charge!
And if you’re looking for the most advanced techniques Stephanie uses as one of the titans of the industry, you can only get those at Success Summit where she will be speaking on how to win listings. It’s happening in Dallas, TX from August 27-29! Have you purchased your ticket yet?
Post-Settlement Open House Strategy No. 2: Know the New Dialogues
The new NAR settlement rules require a new set of dialogues to build trust and form a meaningful relationship.
At an open house, start with the goal in mind. You want to understand the person and their needs. Create a list of questions which will not only allow you to personalize your approach but also qualify the lead. If they’re not serious, they’re not where you should be putting most of your focus.
Ask them if they’re working with an agent. If they say yes, ask them the name of the agent (usually, people can’t come up with a fake name on the spot and will admit if they’re not).
One of the best things about open houses is that you often don’t even need to get into contracts or exclusivity agreements. Yes, your job is to educate, but what you share is just as important as when you share it.
Don’t spill everything you know on the first interaction, because oversharing will turn people off. Instead, use this opportunity to set an appointment to talk about other properties on the market and get a clearer understanding of their goals.
If the NAR settlement rules do happen to come up, don’t be afraid to talk about them! Check out this podcast episode in which Berkshire Hathaway's Jimmy Burgess and I equip you with the tools and strategies you need to thrive in this new era of real estate.
Post-Settlement Open House Strategy No. 3: Know What You’re Pitching
One of the keys to getting a “Yes!” to an appointment is having a great pitch of what you’ll share.
A lot of our most successful clients, including Philadelphia legend Tom Toole offer different agreement lengths when showing properties. He pitches what he calls a “30 day test drive,” in which they can get to know each other, and if they decide that they don’t like working with him for any reason, they’re free after 30 days. This pitch gets agreements signed!
But a word of advice here… Before you talk about anything, it’s crucial to understand your local and state rules, because they’re different everywhere.
My recommendation is to consult with an attorney to get a full picture of these and be sure that you’ve seen every installment of our NAR Effect series, in which five of my best coaches take you through the most important aspects of the settlement changes.
Post-Settlement Open House Strategy No. 4: Market to the Neighbors
I’m going to shout this from the rooftops: You should be using open houses to attract LISTINGS!
This means, you should be marketing to the entire neighborhood. Make your open houses an event that everyone wants to attend – even if they don’t have any plans of selling. You can bring in food trucks, host a raffle, or do whatever it takes to get the neighbors out.
When you blow people away and attract a crowd, it inspires them to want to work with you. You’re the agent who is going to get them the most offers, the best offers, and the best experience.
This leads directly into the most powerful strategy of all…. Making your listings go viral! (More on that later.)
Next Steps....
Join me next week at our annual Success Summit in Dallas, TX where my panel of industry experts and I will share these and other advanced strategies that can help you raise your GCI by at least $200k. There's is still time to secure your place in-person or via livestream so get your ticket now!
Can't make it to Summit or don't want to wait to chat with us in person? Schedule a growth assessment with us today to see how we can help transform your real estate career.