8 things to do in times of market and consumer turmoil

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The Sitzer | Burnett decision has confused many real estate professionals, leaving them wondering how to run their businesses and whether they will exist a year from now. The shock of the $1.78 billion judgment (which could exceed $5 billion) and the incompetent responses in the media make it difficult to know how to move forward. In dialog with the agents I talk to and work with,''I try to offer their perspective and explore in depth some of the mistaken assumptions and misguided rhetoric surrounding this litigation and its aftermath. Here are eight things to keep in mind right now that offer a framework for how you will proceed in the days ahead.

How the industry is adapting

As an industry, real estate brokerage has been around for over 200 years. I have no doubt that we'll be around for another 200 years or more. What has been constant in all that time? We've constantly adapted. We've been constantly changing. We as an industry have come out of periods of change stronger each time. Some of you have witnessed the transitions from paper classified advertising to the internet. Remember when it was said that''Realtors to be completely replaced by online listings? Then discount brokers? Then iBuyers? And the pandemic? The secret to success: In all of these cases, we were actually getting stronger. We transformed ourselves. And we're going to do the same this time around. How do you sharpen a pencil? Through friction. When you have friction in your personal or business life, you become stronger and more resilient. Interruptions aren't bad if you're determined to turn them into breakthroughs. The secret to success: you need to look for your breakthrough. You need to read carefully, pay attention and take trainings. This will make you better and make it easier to communicate your value to your customers.

Discussing commissions

There's no point in discussing the Sitzer | Burnett case again, but you need to have answers to buyers' objections,''vendors or members of your sphere of influence who raise the issue. One of the most damaging arguments you will hear is the accusation of 'collusion' on commission.

This is when competing companies get together and say, 'Hey, here's how much we're going to charge everyone.' When attorneys work on a percentage of the court outcome scheme, it's usually 33 percent. But it depends on the lawyer and the market. If you go to the New York Bar Association website, you'll see that the usual fee is 33 percent. How is that not collusion, as in the Sitzer | Burnett case? My point is that the commission is always negotiable. In other words, the commission is determined by what the agent thinks he or she is worth, not fixed or "standard." The secret to success: Don't''Protect themselves, but thoroughly explore the value of working with a professional who will help them effectively achieve their goals.

Different commission options

One of the things that became clear at the trial was that some coaches suggested that commissions should not be reduced. But that doesn't mean commissions can't be discussed. Here's my opinion on this: I have a performance fee. When people want to hire me as a speaker, I let them know my fee. If they ask for a lower fee, I reply, "I'm sorry, I can't." As an agent you also have that right. You can set a fee that is in line with your value to leave your home and family. You say, "This is what I'm worth." There's nothing wrong with that. The secret to success: Know your minimum threshold and''Make sure you have a cost breakdown to educate your customers.

Educate buyers and sellers

For buyers, you need to explain why going to an FSBO (sellers sell themselves) won't save them money. You need to walk them through every step of the buying process from prospecting to closing. The secret to success: At each of these stages, you help the buyer, hold their hand, and connect them with the people they need to successfully close the deal. Don't forget your responsibilities to your buyers. NAR said it will appeal the liability portion of the grounds of liability because we believe the rules serve the best interests of customers, support market-based pricing, and promote competition in''business. I fully agree. However, while we wait for the appeal to be heard in the courts, buyers will face even greater obstacles in an already difficult market. They will forgo the help they need in what is likely the most difficult and important transaction of their lives. It's your duty to your customers to help them overcome these challenges.

Watch the news

The secret to success: Create Google alerts with keywords that directly impact your business (like your MLS) to stay up-to-date.

Most of all, I want you to know that everything will be fine. We will overcome this and certainly other challenges to overcome. It will take time and we will have to adjust to the new normal, but we''survive as an industry and as professionals. Talk to your broker, stay informed and serve your clients with enthusiasm. Nothing can go wrong with this formula.

Daryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.