Greetings from the modern real estate world! Now that the National Association of Realtors (NAR) settlement agreement has been legally implemented, the new regulations are in force!

I'm hoping you're thrilled. Yes, exactly—excited. These changes present an opportunity to reinvent your company.

Above all, one of the most crucial tactics you can use to increase your database size, create trust, and get fresh leads is hosting open houses. Why? In this blog, I'll respond to it.

However, in order to properly grasp the situation, it's crucial that we examine the situation and its history before delving into the power of open homes.

What Is The Settlement With NAR?

Although I'm sure you already know the details, let's go over them again. The NAR settlement is an agreement that creates new guidelines to improve consumer choice and transparency in real estate transactions while relieving over a million NAR members and affiliated companies of liability for broker commissions.

This has its roots in a class-action complaint about buyer commissions that was filed in 2019. The plaintiffs claimed that the cooperative MLS concept and current incentive structure were detrimental to consumers and anti-competitive, basically allowing agents to collude to inflate commissions. NAR approved a $418 million settlement on March 15, 2024, along with a set of new practices that are already in place.

This agreement reduces the risks associated with past commission schemes and gives real estate professionals a clear route forward.

Which New Real Estate Rule Changes Are There?

The NAR settlement agreement enforced a number of new laws, but the most important one is the removal of compensation offers from the Multiple Listing Service (MLS). As a result, buyer brokers' remuneration schedules are no longer visible on MLS listings. A more individualized approach will be promoted as these talks will take place directly between purchasers and their brokers.

The second most significant shift is one that many agents have already been coping with for some time across the nation. Now, before showing even one house, buyer's agents need to sign an exclusive representation agreement. Freebies are over!

Many of you may find that frightening, but there is one small exception to this rule that might help you stand out from the competitors: the influence of open houses.

Why Your Most Effective Post-Settlement Strategy Is Open Houses?

The only method to show a property without a contract is through open houses. Although this is a benefit in and of itself, the goal here is to increase leads, build your database, and obtain multiple agreements (for showing additional properties).

And that's all before we even discuss how open houses may affect sellers. Soon, more on this.

Strategy No. 1: Create An Experience

We can't discuss open houses without mentioning Stephanie Younger, our Rockstar coaching client.

Open houses played a major role in Stephanie's team of 35 agents' remarkable $340 million in volume and $8.1 million in GCI last year.

"Open houses are similar to store displays of goods. Your store is open for business whenever you have an open house. Additionally, you receive more leads the longer your store is open."

Like any store, it's crucial to establish the right environment. For the purpose of developing each agent's unique experience for their brand, Stephanie has prepared a checklist. She may have millions of dollars invested in her open house plan, but she was kind enough to give it away for free!

And the only place to get the most cutting-edge strategies used by one of the industry titans, Stephanie, will be presenting on winning listings at Success Summit. It takes place in Dallas, Texas on August 27–29! Have you already bought your ticket?

Strategy No. 2: Know The New Dialogues

In order to establish trust and create a meaningful connection, the new NAR settlement rules call for a new series of conversations.

Start with the end in mind while attending an open house. You wish to comprehend the individual and their requirements. Make a list of inquiries that will enable you to qualify the lead and customize your approach. It's not the place to focus the most of your attention if they're not serious.

Find out if they have an agency representing them. If they respond in the affirmative, ask them for the name of the agent; most people are unable to think of a false name on the spot and will confess if they are not.

One of the best things about open houses is that exclusivity agreements and contracts are frequently avoided. Certainly, it is your responsibility to teach, but the content you provide and the timing of it matter equally.

Don't tell everyone all you know right away because that will make people uncomfortable. Rather, take advantage of this chance to schedule a meeting to discuss other available properties and gain a better knowledge of their objectives.

Talking on the NAR settlement rules shouldn't be avoided if the topic arises! Check out this episode of the podcast where Jimmy Burgess from Berkshire Hathaway and I give you the tools and tactics you need to succeed in this new real estate market.

Strategy No. 3: Understand Your Offering

Having a compelling pitch for what you'll discuss is one of the keys to convincing someone to say "yes!" to an appointment.

When showing houses, many of our most prosperous clients—including Philadelphia icon Tom Toole—offer varying durations of agreements. He offers what he refers to as a "30 day test drive," during which people can get to know one another and, at the end of the period, elect not to work with him for any reason. Agreements are signed because to this pitch!

However, a word of caution here It's important to know your local and state laws before you discuss anything because they vary from place to place.

To gain a complete understanding of these, I advise you to speak with an attorney. Additionally, make sure you've watched every episode of our NAR Effect series, where five of my greatest coaches walk you through the key elements of the settlement modifications.

Strategy No. 4: Promote To The Neighbors

I'm going to yell this from the rooftops: Open houses are a great way to draw in listings!

This implies that the entire neighborhood should be your target market. Even if they don't intend to sell, make your open houses a fun event that everyone wants to attend. To get the neighbors out, you can set up a raffle, bring in food trucks, or take any other necessary action.

They are inspired to want to collaborate with you when you wow them and draw a large audience. The most offers, the finest offers, and the best experience will come from you as the agent.