#624 Navigating the New Real Estate Landscape

John Kitchens Coach Podcast | Life. Coaching. Real Estate

#624 Navigating the New Real Estate Landscape

In this episode of One Big Fire, host John Kitchens welcomes special guest Jeff Glover to dive into the challenges and opportunities of the shifting real estate landscape. The conversation revolves around the recent regulatory changes, particularly the Department of Justice (DOJ) rulings that have significantly impacted the traditional real estate commission structure. As real estate agents navigate this new terrain, the importance of understanding these changes, refining negotiation skills, and communicating value to clients becomes paramount.

The episode begins with John Kitchens introducing the idea of how these regulatory shifts are affecting agents and brokers across the industry. Jeff Glover shares his extensive experience, emphasizing the need for real estate professionals to stay ahead of the curve by adapting their strategies to fit the new rules. He explains that many agents are facing confusion and anxiety, largely because they don’t yet fully understand the changes or how to apply them to their businesses. According to Jeff, the key to overcoming this is education, practice, and being prepared with the right tools and language to discuss these changes with clients.

One of the major topics discussed is the removal of commission communication via the Multiple Listing Service (MLS). Jeff highlights that while agents are still legally allowed to offer concessions to buyers, these can no longer be communicated through the MLS in some areas, which has left many professionals scrambling for clarity. Some MLS platforms are interpreting the new rules differently, creating inconsistencies across regions. Jeff urges agents to be clear on their MLS rules and advises taking a firm stance on offering concessions where allowed, as this remains the most efficient way to communicate value to potential buyers.

The conversation moves toward the broader implications of these changes on buyer and seller behavior. Jeff argues that, while the changes are unsettling for some, they also present an opportunity for agents to reset their business models. He encourages agents to shift their focus from simply following traditional commission practices to building stronger relationships with clients by presenting themselves as value-driven experts. The episode emphasizes the importance of transparency and communication, particularly when it comes to explaining commission structures, offering concessions, and ensuring clients understand their options in the current market.

John and Jeff discuss the rise in “steering” — a practice where agents may direct clients toward listings based on compensation offered to buyer’s agents. With the recent rulings, this issue has come to the forefront, and agents need to be cautious about how they navigate these conversations. Jeff suggests that educating both clients and agents about the importance of fair practices and long-term relationships will help mitigate some of these issues.

Throughout the episode, Jeff emphasizes that the agents who adapt quickly and embrace these changes are the ones who will thrive. He points out that many agents have relied on the same business practices for decades, but the real estate industry is evolving. To succeed in this new era, agents must become adept at articulating their value proposition — explaining exactly what they bring to the table and why clients should choose them over their competitors. Jeff encourages agents to hone their negotiation skills and focus on their expertise, which will help them maintain and even increase their commission despite industry changes.

Jeff also highlights the importance of staying engaged with ongoing education and training. He advocates for regular role-playing sessions, writing out scripts, and consistently practicing the new language needed to discuss compensation and value with clients. For Jeff, this is a critical step in preparing agents for success in the new real estate landscape. He shares how his team has implemented daily practice sessions to master these conversations, which has helped them feel more confident and capable in front of clients.

John Kitchens adds to the discussion by stressing the importance of storytelling and building trust with clients. He notes that buyers and sellers are more informed than ever, thanks to the abundance of information available online, and it’s up to agents to demonstrate their expertise in a way that resonates with modern consumers. By using testimonials, case studies, and personal success stories, agents can build credibility and stand out in a crowded market.

The episode concludes with both John and Jeff offering actionable advice for agents looking to navigate the new real estate landscape. They recommend that agents start by educating themselves on the latest rules and regulations, practicing new negotiation techniques, and refining their value propositions. By focusing on delivering value, maintaining transparency, and building long-term client relationships, agents can not only survive but thrive in the evolving industry.

Key Takeaways:

• The DOJ’s changes to real estate commission structures require agents to adapt quickly by learning new rules and practices.

• Offering concessions is still legal and effective, but agents must be clear on their MLS’s stance.

• Strong negotiation skills and the ability to communicate value to clients will be essential moving forward.

• Agents should focus on continuous education, refining their value proposition, and building trust through storytelling and transparency.

Resources Mentioned:

• Glover U Free Resources

Listen to the Full Episode: Watch on YouTube