WAV Group Inc

Where Agents and Brokers Earn Their Commissions
Recently, our daughter Alexandra Lund graduated from Syracuse University with two diplomas – one in Entrepreneurship from the Whitman Business School, and another in Advertising from the Newhouse School. She also received the Cuse Award for outstanding performance and leadership in NCAA Athletics. The dance team had never placed in the top 25 teams in the nation before Alexandra arrived. Her freshman year was a blow-out because of COVID – no national competition. Nonetheless, they still practiced every day. During Alex's sophomore, junior, and senior years, they placed in the top 10 every year. One of her coaches that has worked with her since the age of 9 always taught her: You earn championships in your preparation. You pick up the award at the competition. Isn't the same thing true for real estate professionals? Yesterday, my good friend and business colleague, Mark Mclaughlin, reminded me that in many ways, it's the effort and preparation that drives great brokerage companies and agents to succeed. In his article titled the 3 Rs – results, rules, and records, he writes: Those individuals and companies that focus on perfecting the expression of their value proposition will gain market share. At WAV Group, we define effort and preparation as the sinewy tissue that holds the relationship between the agent and the client together. It's a patchwork of influences that cause agent development – which includes showing up to office meetings, coaching, training, technology adoption, marketing for new relationships, and an incredible effort to stay in touch with people you know. All of this is the preparation that leads to well-earned success, the commission is merely the award. Sure, the antitrust litigation and settlement will change the way real estate commissions are awarded starting in August. Companies and agents who do not put in the work to prepare themselves for change will not be on the podium accepting awards. If firms do not have strong brands and an office full of agents who have deep, well-earned trusted relationships with their clients – they will fail. The days of licking quick and easy transactions off of the grass are fading, if not gone forever. A note to agents: Beware of commission programs from brokerages that are too good to be true. If your firm does not have the income to invest in the brand, the management team, compliance, training, and technology – you will not get the support that you need to succeed. The extra dollars you may earn in the short term are not worth it. Seek out firms with significant listing market share and great support. Top performance and growth across our industry is correlated to market share in your market. Partner with one of the Top 5 firms and you will be fine. The awards will come your way. A note to brokers: If you are not a top 5 firm in market share, become one. Merge with like-minded firms in your area until you get there. Cutting support and technology to save your bottom line will lead to the failure of your agents to get the support they need to compete in a changing market. Grow or die. If you don't know how, click here to buy our book, Acquiring More Profit, for $120, and read it. It's a detailed playbook on mergers. Just follow the steps. To view the original article, visit the WAV Group

[Podcast] Guide to Better Mergers and Acquisitions with Victor Lund
Ready to gain insider knowledge on mergers and acquisitions? Join us on this episode of Real Estate Insiders Unfiltered as James and Keith are joined by Victor Lund, author of Acquiring More Profit and CEO at WAV Group and RE Technology, and advisor to the Broker Public Portal. Learn the strategies behind successful M&A deals from one of the industry's top experts as he guides you through collaboration, culture, proper evaluations, and more. Don't miss out on this essential information! For the definitive and in-depth guide to mergers and acquisitions, check out Victor's book: Acquiring More Profit. Listen to this podcast on: Apple Spotify YouTube Other Visit the episode homepage for show notes and more

Brokers Over $2B in Volume Should Prepare for Mediation
Friday, March 15th, 2024 was a watershed day for the real estate industry in the United States. The National Association of REALTORS® (NAR), who had been negotiating with the plaintiffs in the Sitzer/Burnet Antitrust litigation, announced a proposed settlement that covers the entire real estate industry (including all Realtors, Realtor associations, and Realtor-owned MLSs, all Realtor affiliated brokerages) except for brokerage firms who perform more than $2 billion in transaction volume. The NAR settlement comes on the heels of other settlements, including RE/MAX, Anywhere, and Keller Williams. There are about 94 brokerage firms that transact over $2B per year. In the Sitzer settlement, NAR negotiated a buyout for these large firms at a rate of about $2.5 million per $1 billion in trades. Using this math, Compass would have been subject to $2.25 million multiplied-by 228, since they did $228 billion in transactions. However, Compass was able to negotiate $57.5 million. Compass is making two payments. Compass negotiated their settlement in the Gibson and Umpa cases, which covers all plaintiffs in each of the copycat lawsuits – including those in Sitzer. Let's unpack this. Any firm in the $2B club that has been named in any of the copycat lawsuits may go to the plaintiff's attorney and settle. The settlement in any of the cases covers all cases – including Sitzer. Firms would not be required to pay more than once. The attorneys in the copycat lawsuits have a heightened motivation for settling with any of the brokers in the $2B club. If firms do not settle in any of the copycat cases, the judge will tell the plaintiffs to go collect their check from Sitzer. Those lawyers may not participate in the settlement at all, unless they can cajole brokers in the $2B club to settle with them. The settlement terms may be different. As you know, there are a number of terms that eliminate the offer of compensation from the MLS entirely, among other things. NAR makes payments over four years. Compass makes payments over two years. Compass has different settlement terms. If you are in the $2B club and you have not been named in any litigation, your best bet might be to contact the mediator in Sitzer and negotiate a settlement. You have some time to prepare, but not much. The mediation in Sitzer does not start until the court accepts the settlement. What should you do now? Prepare for mediation. Get your attorneys on it. Pay close attention to the settlements that have already been announced, and do some 5th grade math. How much did they agree to pay per agent, or per seller transaction? Is your business model different? How much can you pay? These data points are all helpful in negotiation. WAV Group is not offering legal advice. We help with information and strategic planning. To view the original article, visit the WAV Group