One of Gary Keller’s most used phrases of the past five years — “Change is inevitable; participation is optional.”
Yesterday, in a landmark ruling for the real estate industry, change occurred. A verdict was made that will keep our industry in flux for some time.
After 11 days of testimony the eight-person jury took just a little over two hours to decide its verdict in the Sitzer/Burnett commission lawsuit trial; it found the National Association of REALTORS®, HomeServices of America, and Keller Williams Realty guilty of collusion to maintain high commission rates.
The reality is we still don’t fully know what this means, but as we continue to await both final rulings from Judge Stephen Bough, final rulings in other ongoing cases, new testimony in cases that have already been opened against other of the most prominent brokerages in the world (as happened immediately following yesterday’s ruling), there are a few things that I find to be certain as change (in some way, shape, and form) happens for our business.
And one of those things is illustrated in this image with the circles:
When it comes to this verdict there is certainly a case to take a moment to process it, educate ourselves, and follow up as we gain more information.
But even more than that, I want you to know that agents, including you, can and will get through whatever aftermath follows from this if you do one thing…
FOCUS On What You Can Control
Most agents will choose to be completely distracted by this over the next several weeks despite having zero control over the outcome.
However, remember Gary Keller’s words: change is inevitable.
As my friend Al Donohue said yesterday, “Focusing on things out of your control will only lead to frustration and lost productivity.”
The truth is that the agents who choose to focus:
1. On becoming better agents through scripts and roleplay.
2. On educating their clients on the value they bring in helping them on their buyer and seller journey.
3. On meeting more individuals and adding them to your Command database.
These are the agents that will win no matter what change continues to come as a result of Sitzer | Burnett. So, stay focused.
What Else Should I Know?
- As of 10/31/2023 1:32pm MST NAR released a statement that there is nothing that brokers, state/local associations need to do differently as a result of this verdict. *This information is relevant only as a statement at the time it was given and is subject to change.We are in close dialogue with our attorney and counsel from kw Realty International as we continue to gather facts.
- Our brokers are in communication with local and state leaders as we gather facts pertinent to Arizona and I will work with Jim and Kristan to create an FAQ once more information is given
- KW Realty International released a statement yesterday maintaining that we have always abided by legal practices of clear cooperation and that while they respect the jurors they disagree with verdict, saying, “This is not the end.”
- Appeals are most likely going to occur based on direct statements from Keller Williams and other brokerages and this and other decisions will probably take months, if not years, to completely settle.
- We will coordinate a broker and leadership roundtable once we believe we have the correct, best, and relevant information to help you in your business. We will not react, we will respond in a helpful way to you.
Two Things For Sure…
- Use a Buyer Broker Agreement to maximize transparency by putting everything in writing and ensuring clarity with your client.
- Express clearly that commissions are negotiable and set between agents and their clients.
Your kw Arizona leadership will continue to keep you up to date and trained with the information you need to win.
Yes, change is inevitable. However…
For today, focus on what you can control, and you’ll win the day.
All in,
David