Whirlwind week at the NAR Convention

Shana, so, yes, quite a week at the NAR conference, right?

Yes, it was. You know, there were over 10000 attendees, 10000 in California. In one place.

And I did kind of find it funny that. The whole week, like you, they ran out of coffee and there was no water anywhere like you couldn’t. You know, the water machines were empty, finding bottled water was rare, and normally they’ll have outside the meeting rooms, they’ll have water stations. They were all out of water. I mean, it was just crazy.

I think getting back into a routine that we’re not familiar with was really interesting. There hasn’t been big conferences like this in two years, nor have people come out and attended, you know, such rigorous itineraries. I mean, it was literally.

7:00 a.m. in the morning until 11 o’clock at night, and it was beautiful weather, and the only time I was able to enjoy it was to go from one hotel to another running to the next session.

So it was like. Wait a minute. Why are we having this such a beautiful place and we can’t even enjoy it, but it’s OK, it was all good. It was very educational for me. I’ve never attended a nature convention, so it was crazy.

Do you recommend it?  

Yes, it is. You have to be expensive. So the reason we all have Collin County went well, now I’m I’m an air director, but we had all of our Collin County Association staff attend as well because, you know, Texas really represents on the national level, we have the incoming president. Leslie Smith is from Collin County. Marvin Jolley is the Texas Realtors Secretary Treasurer.

So it was like, we have a lot of Texas representatives there on the national level, which I think is pretty cool. So we got a lot of shout outs. But yeah, there were, you know, there was a lot that went on all week. But I did want to touch on some of the latest things that came out of the board meeting.

That was five hours yesterday. It’s crazy. So what’s really important to me, I’m just going to highlight these one is there were, I think, six. Uh, changes to MLS that I think are super important, so we’ll talk about the most important one to me was they are now going to require us to.

Up display our compensation, so whatever compensation we are offering out there, has to be. Um, conveyed through IDEX through all the feeds now. So the consumer it was to support transparency with the consumer.

However, now they’re all going to know what our compensation is. And I was in one session and I try to sit back and just absorb and listen. But. I did speak up and ask, you know. I don’t know, I don’t see attorneys who charge different fees by the hour display how much their fees are.

Right. Doctors like you, just why do we have to publicly share what our compensation is?

I don’t know. I think it, you know, I don’t see any benefit to that. You guys might feel differently. I did hear from some realtors that said at the higher level, they always share. What their compensation is. Well, sure, you do. Not to the public.

And I also argued which ones of the at the national level who are serving at a high capacity or actually out selling real estate, right, because I believe that there is a gap with what’s happening in the day to day operations, to what’s happening at their level.

And I think there’s a huge gap that needs to be bridged in some way, shape or form. So anyway, that’s a whole other topic. But so that’s going to be something that we’re going to be required to do.

And that would be for all compensation for the buyer and for the seller. And it kind of gets listed. And you’ll have options to listen as a percentage or flat dollar amount.

I don’t know how it’s all going to work. That’s the thing that I don’t feel was truly transparent to us. And a lot of people had questions. We had roundtable discussions and people were super heated over this and felt that it was not something that we should do. And these are all realtors that practice on a day to day basis. But then when it got to the vote, it passed with flying colors.

So I was really taken aback by that. I don’t understand it. Um, so we’ll have to see how that plays out and how it really gets displayed, is it just taken from our mills, you know, from what’s currently in there and they just open it up to be shared out there on all of the third party sites?

I don’t know. And through IDEX, I don’t know, but we’ll find out anyway, it’s going to be out there. The next thing is that I thought was good. They’re going to prohibit us from representing that our services are free, so a lot of times you’ll say list your home for free or that working with me is free, which I will say I’m guilty of that. I have told people that from a buyer’s standpoint.

You don’t pay me so, you know, it costs you nothing to work with me, so it’s how you say it. But it does actually cost them because on the other side, we’re getting paid from the seller. But that goes into part of the deal.

Right. So even though the seller is paying, it does affect the buyer because it’s an added cost that’s rolled into the transaction.

So you can’t advertise that your services are free as a buyer’s agent, right? Ok.

Right. A couple of other things is you can’t filter your listings now to based on compensation. You know, we’ve been seeing a lot of a dollar in the compensation or some really crazy amounts. So some people wanted to be able to filter those and just not even work with those with those brokers.

And you’re not able to do that. You can’t. No, you cannot do that. So, you know, a lot of a lot of just best practices were really put out there that we should be doing. And it’s amazing that I found what other people don’t do right. Like we have access to backend data from our ID.

A lot of states don’t. We’re a non-disclosure state, so I’m interested to see how some of these things will work on our level since we are a non-disclosure state didn’t really get a clear answer to that.

Yeah, because if you don’t disclose certain stuff about the property, why are you disclosing stuff about compensation, right?

And going back on that filtering, you can’t filter based on a broker, a specific agent, anything like that. So it’s kind of just keeping everything kind of transparent. So the other one, let’s see was just a data feed, but that, you know, those are the big ones that came from the MLS.

And so what I wish they would do is show examples of what it’s going to be. They give you a written definition, but you’re not voting on. This is what it’s going to look like and how it’s going to actually work in the real world.

And I almost that’s kind of weird when you go to the polls and you’re I’ll use the propositions that come out there you go and you’re voting for. But are you voting for the proposal or are you voting for?

You know what I mean? It’s like. I think there is a little bit of confusion on on that, and I was telling. Another attendee yesterday, I said, do you think that maybe there’s some confusion because in all the roundtables I was in, they were super vocal about this is not in our best interest, so I don’t know. Well, we’ll see a couple other things that came out of it is.

So there’s the you know, we’re at the national level, we’re involved there as realtors, we’re involved in a lot of the legislative sessions and procedures. There’s a. Federal taxation, so they had two things regarding federal taxation, one, we’re against, which I’m glad, but there’s a proposal out there that anything over six hundred dollars.

If you make anything over six hundred dollars, you get a cheque for six hundred and fifty dollars that is required to be reported to the IRS.

Ok, that’s a little extreme, so, you know, they really shot that down, but that was there was a lot of discussions around that, and I think that could have been really interesting because who’s going to police that? Who’s going to be monitoring it? They’re going to have to hire tons more IRS workers?

I don’t know. I thought, really $600. That’s what we’re going after. The other thing was we’re in support of the existing law that allows self directed retirement vehicles. So the self-directed IRAs, the ten thirty one exchanges, you know, apparently there’s some abuse that’s going on in that and they’re trying to really tighten it.

You know, the the guidelines on them and what is out there on the on the table is a proposal to do away with those and not let them be an investment. You know, invest in real estate, so I think that would severely impact our industry and investors who are wanting to invest in real estate. I don’t know. I I’m glad that we are in support.

The concept of a self-directed IRA is you can invest in the things that you want and you direct it yourself and you don’t have to invest in a publicly traded company or in something else.

Yeah, but they were wanting to do away with being able to invest back in real estate. And, you know, we’re going after that one to hopefully get that squashed.

Hmm. Probably stockbrokers wanted to go after that.

And in fact, I think it’s on well, there’s another one with FHA. So there’s an FHA flip rule that allows for, you know, for the first 90 days, you have that first look where they try to get owners, owner occupants and not investors. So to give the first time homebuyers and people are true chance.

I think they’re trying to increase that to one eighty one hundred and eighty days. So they’re doing some things there that will be more beneficial to the consumer. That’ll give them a chance at some of these properties.

Yeah, but that’s an expense, too. It’s a caring expense all of a sudden. So that anyways, I mean, 90 days should be enough. How long do we got to wait before you can open it up and actually sell the property?

And there’s a lot more to this, you guys. I mean, I just kind of did a couple of the of the hot topic ones that I felt were hot topics. We’re going to share the link, but you can go to the nearby realtor website and see all of the board approved motions that happened yesterday. It’s interesting. It’s very interesting. And you know, I. The MLS one to me, was number one on the list.

You guys might find others to be very important, so if you see something on there that you want to discuss, I would love to hear your feedback. And if you think we should be sharing and being transparent about our compensation, I would love to hear that too. Right, so. Interesting stuff. So I would like to talk about two takeaways that I had from this event.

Our association on a local level is pretty awesome, right? I never really knew more to to be able to make this assessment, but a lot of things that we discussed in these roundtables from people all over the country, you know, even let’s use Miami, they’re like the biggest association that I heard. They have fifty five thousand members, OK? Fifty five thousand members.

And then you have, you know, a small association that may have one hundred and fifty members. So it was very interesting, but I found that where we are as an association. And Mary Liddy is our CEO of our association. She really does a good job at managing us and keeping everything on track.

So I was very impressed with that. The other thing that really hit me is that every day on a day to day basis, we’re fighting to prove ourselves to people right and try to one up another posting, We’re having a closing, we’re in multiple offers. We’re this and that.

We’re more than that. To see all of these things that we go to, you know, all these governmental issues that we fight for and get approved and that help our association and help our industry. We don’t even think about it

Like being deemed essential.

Being deemed essential is huge. So, you know, I don’t know. Not to get political, because I do not. I do not like politics. I don’t like it, I don’t like how it all works. I don’t, but I do like that there are people advocating on our behalf to go and meet the right people to get things done.

You know, I do like that, and it just made me realize that we are much more than just a realtor to sell your home or help you buy a home. We are advocates for real estate and for property rights and, you know, for the American dream, so. Is it?

It seems like I should be chanting after you’re

Done, but we are you guys, we are, you know, we’re we’re consultants and we’re helping people with their investment.

I mean, there’s just a lot more, a lot more to it, and we need to stop doing things that diminish our value. You know, people think we drive fancy cars and have nice shoes, which I did see some real estate celebrities that you see on TV.

We’re also at the event and everybody knew them walking around because, you know, they had. Very expensive attire on, but we are much more than that. We are advocates, you know? So anyway, that’s it

Sounds good to me, that was an amazing topic. Thank you. We’ll move on and I’ll keep talking about these over the next few days as I go through my notes. But I got in at 11 30 last night and you’re here now and I’m here now.

Episode Links

federal taxation , Collin County Association, Collin County, NAR conference, Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 11.16.21

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