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That’s all well and good, or fines will accrue as agents and brokers discover that their Multiple Listing Service (MLS) means penalties for violating the commission’s language and rules set forth in the settlement lawsuit.
While fines are nothing new in the real estate industry, these fines still seem to catch agents off guard due to workarounds, misunderstandings and what appears to be just poor planning and oversight.
But it’s not just the MLS and consumer complaints you need to be prepared for; You also need to be prepared for the fact that competition is going to be fierce. In fact, it may be fellow agents who report you for violations at the state and local levels.
Why? Let’s face it, there isn’t enough business to go around, and the highly productive agents who are determined to stay in business are left tired and burned out by the neglect of other agents who make their jobs even more labor intensive. , and make trading a nightmare.
So what can a broker, administrator or agent do to ensure that unnecessary fines and violations don’t pile up like the bottomless pancake platter at IHOP? What steps can you take to avoid getting into trouble? There needs to be a collective plan to ensure everyone is on the same page, creating a consistent experience for all consumers involved.
Here are three pitfalls you may have missed during your preparations and some cleaning tips that may help avoid disaster.
Discontinue use of briefing notes and documents from 2023 or earlier
Trap 1: Trying to make outdated materials work by adding new ones
It’s time to take a new approach, and that means you need all new materials, systems, and briefs. I think where a lot of people struggle is when they try to adapt old packaging and systems with new materials. In doing so, you risk missing parts of the language that might be out of context or contradictory to the new system that’s about to be put in place.
Clean it up: Conduct a careful review and make sure to discard any old material. Create new packaging using the latest nationally approved revisions. Keep careful records of when and how you perform this process in case it comes up before a court or appeals committee.
This also means making sure you review all listing descriptions and documentation for active listings your team has previously held.
If you are a broker and you have gone through this review system and provided guidance and materials to your team, make sure you have written documentation showing they understand the new process and have culled and removed materials.
Stop creating digital paper records of consumer rants online
Pitfall 2: Social media and marketing habits create the wrong impression about commissions
Many agents are producing easy-to-find digital evidence that can be collected against them to support fines and violations they face for their rants and activities on social media. For example, ranting in a “private” Facebook group might be a big problem for you, depending on the circumstances.
Creating and sharing videos about how you would treat clients if they paid you less (pretending to rush them or acting like you would do the bare minimum) is not only in poor taste, but also implies that you expect a certain commission rate, And will not be open to negotiation.
If you find yourself in a sticky breach situation or under investigation, what’s not to look at? video:
- Making fun of consumers who are misinformed or seeking discounts
- If you work at a discount, you’re being too aggressive with services you won’t provide
- Just stupid and sarcastic
In other words, if you find yourself getting fined and having to explain yourself, your business, and your dedication to customer service, these videos won’t do you or your brand any favors.
With the Consumer Federation of America (CFA) investing heavily in protecting consumers, now is the time to create content that supports consumers, rather than entertaining other agencies or making fun of the industry. Professional agents will strive to raise the bar rather than perfect their stand-up comedy routine.
Likes and comments on the content of influencers and coaches who create hype videos, promote aggressive tactics, and manipulate consumers into any type of commission structure leave a digital trail that can be easily traced through screenshots. In other words, be careful what you like and share because you never know where it might resurface.
Author’s Note: If you think no one is paying attention, let me remind you: when I was previously involved in discussions about grievances and fines at the association level, it wasn’t the consumer you had to worry about. An agent knows how to bring a case against you because you did something, intentionally or sometimes unintentionally, to give them grief in the transaction. They have enough documentation ready to win.
Clean it up: Master your personal and team social media hygiene habits. You will stand with them during the Board Grievance Investigation and may have to accompany them to court. Also, be wary of people who claim to be experts to tell you what to do. It’s the wild west and there are no experts yet.
Enhance exploration efforts by exposing and respecting consumers
Trap 3: Stop providing consumers with overly complex messages
One of the key things moving forward with consumers is providing them with educational materials with very little friction or impediment. They need information about new practices from reliable sources that is easy to understand and available in multiple formats to accommodate accessibility and different learning styles. Think like a fast food drive-thru menu; they need to be able to browse a few options and indicate what they want.
These may include short video explanations, FAQ pages, informative and professional educational posts in marketing, and dedicated areas on the website to find disclosures and materials that are easy to understand and provided multiple times during interactions with consumers .
I sell homes in a retirement community and have been looking into some policy changes and purchase language updates. Our team develops a carefully planned update program to provide updates to clients in a variety of formats, including written correspondence, digital updates and face-to-face meetings.
Our team found that even though we initiated planning weeks in advance to notify these changes, we took a very personal, hands-on approach to helping clients understand what the changes were.
Many customers simply won’t take the time to read these messages, and many others are too busy to retain the information. Clients will also question your expertise and bring your materials to consultation to interview you line-by-line about what you’re reading to see how prepared you are.
Perspective is key, your clients will be interested in their personal results, not how you are compensated. It’s important to focus the conversation on their goals and desired outcomes.
clean it up: Concise and clear. Be a good listener. Be willing to repeat and provide demonstrations often – even if you think your client understands.
Much of the training and education around prospecting is about how to attract attention and “convince” consumers to work with you. There was a lot of bad, high-pressure advice from the coaches who pushed the playbook 20 years ago.
Just like throwing away old briefs, you need to throw out outdated prospecting strategies. In this new environment, you have to move away from tactics that may not be conducive to working with consumers.
Professional operation doesn’t necessarily depend on the suit you wear. It’s about how you behave in transactions with your peers. You need to learn and be prepared to work in this new environment with your team and other agents. If you are not prepared, you may pay a high price. What you don’t know may turn your business into a One cannot afford some serious debt.
Watch your back, be polite, and be very careful about what you send in text messages and emails.
One last tip: volunteer at your local grievance association. This will provide you with the best education on the pain points, pitfalls, and areas where your business may be at risk, and it may be the best new think tank for developing the “experts” we need to help us achieve this ongoing Changing targets.
Stay in your lane, stay sharp, stay clean on social media, and if you mind your own business, you can avoid unnecessary fines.
Rachael Hite is a business development professional, fair housing advocate, copy editor and former agent. Rachel is currently perfecting her long game of selling forever homes in a retirement community in northern Virginia. You can chat with her about life, marketing, and business on Instagram.
