HousingWireHousingWire
On the RealTrending podcast produced by HousingWire, host Tracey Velt chats with San Antonio-based Realtor Jessica Conrad in the final installment of JPAR Real Estate’s four-part Settlement Strategy Playbook series.
Conrad discusses best practices for transparent conversations between listing agents and sellers, the value of educating sellers on the new buyer agent compensation agreements, and ways to show your value as a professional agent. She also explores JPAR’s agent training and resource efforts.
Velt and Conrad start their conversation by diving into changes in seller expectations regarding agent commissions, following the Aug. 17 business practice changes mandated by the National Association of Realtors‘ (NAR) commission lawsuit settlement. Conrad shares that she leads conversations to educate sellers on the changes based on her research and training provided by JPAR.
When speaking with a seller, Conrad explains the new MLS rules, talks about compensation, and makes sure the client knows that it’s completely negotiable.
Conrad is also careful to avoid referring to the NAR case as a lawsuit, instead referring to it as a series of “legal changes” that have occurred within the industry, including the rule that agent compensation can no longer be listed on an MLS. She then takes Velt through the rest of her script and offers a few insights into effectively communicating with clients. Beyond explaining the NAR-related changes, Conrad still pushes to show value and fortify relationships with clients.
“I get a lot of my practice from referrals, and so making sure that my reputation is above board and super solid, so people know that they’re dealing with a professional, then I feel like it’s necessary to explain that I need compensation,” Conrad explains.
Conrad says she rarely has to advocate for her own compensation. Instead, she prepares sellers for realistic points in the transaction, such as buyers calling and asking for compensation for their own agent. Velt chimes in and shares how important it is to be transparent with sellers. She also asks Conrad if her clients have been receptive, and how she’s handled any resistance. Conrad says she hasn’t encountered resistance but continues to express the value of setting aside enough to pay a buyer’s agent as an incentive to bring buyers to the table.
Next, the duo explore Conrad’s strategies for making compensation agreements smoother. Conrad gives her clients a seller information packet, containing copies of JPAR’s forms and a guide to explain the new MLS rules. She says that an informed seller is more likely to trust an agent throughout the transaction process. Furthermore, Conrad makes an effort to keep herself well informed so she can offer sellers the most up-to-date information possible.
JPAR supported Conrad with transparency on the company’s new directives, training sessions with professionals from across the globe and other information. She also messaged JPAR a few days after the NAR changes went into effect for assistance with a listing presentation, and the company was eager to help out. Maintaining communication with other professionals is also a vital part of Conrad’s success, and she makes sure to collaborate with other agents and understand both sides of the equation.
Velt asks Conrad to explore how she markets herself to potential clients. Conrad gives previous examples of her success as an agent, along with examples of obstacles she’s overcome through creative thinking and quick problem solving. She also hosts community events to give sellers a fun outlet away from the business. Conrad said she is closely connected with her community and ensures her clients understand that.
The pair close the conversation by urging agents to attend meetings, practice filling out the new forms and do copious amounts of research to gain confidence in explaining the settlement changes to clients.
