Uncovering The Truth Behind NAR’s Settlement: What the Media Got Wrong
Imagine being a member of the WORLD’S LARGEST TRADE ORGANIZATION - a PAYING member and hearing the news of a lawsuit settlement by your own organization BEFORE we, the members, learned of this settlement? When the media was informed about this settlement (supposedly simultaneously as we, THE MEMBERS of the world’s largest trade association were), they shouted the most preposterous headlines from the mountaintops. I awoke to these stories and was in SHOCK on Friday, March 15, 2024!
The first thing I heard was the our own trade organization had thrown its own members under the bus - ‘admitting to collusion, price-fixing, etc.” The biggest issue I had with this whole scenario was that the media found out before we did and we had absolutely NO time to read the settlement and prepare for our clients' questions. What is obvious to me is, that neither did the media read the settlement! Here are just a few examples of those preposterous headlines, both locally and nationally - again, on Friday, March 15.
CBS NEWS
“National Association of Realtors to cut commissions to settle lawsuits. Here's the financial impact.”
CNN
“The 6% commission on buying or selling a home is gone“
The New York Times
“Powerful Realtor Group Agrees to Slash Commissions“
NBC News
“New rules could start saving home buyers and sellers thousands of dollars in lower commissions as soon as this summer“
Associated Press
“Real estate lawsuit settlement upends decades long policies that helped set agent commissions“
“The National Association of Realtors has agreed on Friday, March 15, 2024, to pay $418 million and change its rules to settle lawsuits claiming homeowners have been unfairly forced to pay artificially inflated agent commissions when they sold their home.“
“A powerful real estate trade group has agreed to do away with policies that for decades helped set agent commissions“
Yahoo Finance
“The powerful National Association of Realtors is set to usher in the most sweeping reforms the American real estate market has seen in a century. It could dramatically drive down homebuyers’ costs — and push some real estate brokers out of business.“
ABC News
“Selling a home is about to get cheaper after historic settlement“
Wall Street Journal
“Real-Estate Collusion Is Finally Coming to an End“
Like many Realtors® across the country, the news initially shocked me. But, taking the time to dive into the details of the settlement myself, I realized the media's portrayal was WAY off the mark - not even CLOSE to the details of the real settlement. It wasn't long before calls started pouring in for many agents/brokers, from our current sellers, buyers, and wider network of peers and referral partners. They had loads of questions and understandably so, given the misleading headlines that had been circulating. It was clear the media's spin had left many consumers (and even many agents) confused and concerned.
This settlement introduces changes poised to significantly streamline the real estate industry. It targets agents & brokers who have not been treating their businesses as a business or adhering to the rules and regulations set forth by our trade association - including our CoEs. This move is set to enhance professionalism and compliance within our field and will undoubtedly lead to a substantial decrease in our membership numbers, potentially affecting our status as the world's largest trade association.
How do we combat these sensationalistic (and bitterly misleading) headlines?
Combating sensationalistic and misleading headlines requires a strategic approach, focused on clarity, education and positive communication:
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Engage with Your Sphere: Make calls to your sphere, use social media, newsletters and your website to share accurate information and insights about the settlement. Make your communications engaging and easy to understand.
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Educate Through Content: Create content that addresses the misleading headlines directly, offering clear, factual counterpoints. Blog posts, videos, and infographics can be effective formats for breaking down complex issues.
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Media Relations: Build relationships with local and industry media outlets. Offer yourself as a knowledgeable source to ensure more accurate representations in the future.
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Leverage Industry Experts: Collaborate with experts within our trade organization and the wider real estate community to amplify our message. Joint statements or interviews can add credibility.
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Transparency: Be open about the situation, acknowledging the concerns the headlines may have caused without amplifying the negative message. Focus on the positives and how we are addressing the issue.
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Monitor and Respond: Keep an eye on social media and online forums to quickly correct misinformation. Polite, fact-based responses can help sway public opinion.
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Encourage Member Advocacy: Empower our members to share their positive experiences and the truth about the situation. Personal stories can be powerful in changing the narrative.
- Lastly, the best way…Host Q&A Sessions: Organize live Q&A sessions on platforms like Facebook Live, Instagram, or ActiveRain Zoom Calls!! Direct interaction allows us to address concerns, debunk myths and clarify any misunderstandings in real time. We have SUCH an incredibly brilliant group of AR Zoomers at our disposal each and every Tuesday. Why not leverage our collective intelligence to its fullest potential?
By taking these steps, we can help shift the narrative from sensationalism to substance, ensuring our audience receives the accurate information they need.
We're excited to invite you to come together and delve into the five key issues related to the settlement. It's a great opportunity to exchange ideas on how we can communicate these points to the general public. Looking forward to seeing you on Tuesday!
Here’s the link to our Zoom call, which is 2PM Eastern Standard Time
Hope to see you there!
© Debe Maxwell, CRS | The Maxwell House Group | Savvy + Company | SavvyBroker@me.com | Uncovering The Truth Behind NAR’s Settlement: What the Media Got Wrong
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