LeadUP Notes: Winning with the New Rules

Three Types of Leaders:

• Head-in-the-sand optimist: Do nothing.

• Observing and waiting: Risk getting left behind.

• Preparing: Prepare for the worst and hope for the best.

Shift in Listing Priority:

• Current: 43% listings; Next: 53% listings (additional sales needed).

• Buyers: From 85 to 57% due to changes; 47% after changes to compensate for loss.

Impacts:

1. More buyers will approach listing agents directly.

2. FSBO (For Sale By Owner) and expired opportunities will increase.

3. Database business for listing agents will slightly increase.

4. Open houses gain more value; outline the next model (Double End X).

5. Listing agents retain influence over buyer agent compensation.

6. Listing agents can still build teams and networks with a listings-first model.

Effects on Buyers Agents:

1. Buyers expect not to pay commissions.

2. Buyers' agents will face objections to work with the listing agent more frequently.

3. Buyers' agents may offer fees for services or discounts; flat fee agents on the buy side.

4. Database business on the buy side may decline.

5. Buyer leads become cheaper; more companies may approach the listing agent directly.

6. First-time homebuyers may struggle with the process or go it alone.

7. Buyers will resist being locked into using one agent (create a simple non-exclusive Buyer Agency form).

8. Buyers may need to change loan programs; less enthusiasm for holding open houses.

9. Buyers' agents may earn more for clients who see value.

Key Principle: OVER COMMUNICATE EVERY STEP