BOSTON, MA—There are a few questions present at the forefront of REALTORS®’ minds as of late—Clear Cooperation, compensation, the DOJ investigation into NAR—but none as pressing as how to succeed in the new normal.
Anthony Lamacchia—broker/owner and CEO of Lamacchia Companies—and eXp CEO Leo Pareja answered these burning questions during their “Crush It In Real Estate” panel at NAR NXT earlier this month.
Lamacchia opened the session by noting that despite all the turmoil the industry has faced this past year, real estate still thrives.
“Leads were still flowing in every day from sources, and people are still determined to work with REALTORS®,” he said. “The industry disruptors years from now are going to look back and say, ‘We failed again.’”
He continued by saying that “sales are happening, commissions are being paid,” although there is still a bit of confusion post-NAR practice changes. He then explained that to clear up any confusion and keep the industry running smoothly, it’s time to get training and take action.
“We are in a situation where the importance of getting your forms right and going to training and being up on these kinds of things is critically, critically important,” said Lamacchia. “Now is your time to get in action, and for the leaders in the room, now is your time to encourage your agents more than ever to completely get in action and take advantage of this opportunity that is in front of us. The best companies are born out of downturns.”
Following his opening remarks, Lamacchia welcomed Pareja onto the stage, where a conversation between the two opened with the controversial Clear Cooperation Policy (CCP). The hot-button issue has been a big talking point from both, who have expressed their support of the policy on multiple occasions.
Lamacchia began by reiterating that he believes the policy should stand, saying he believes “it creates a better marketplace for buyers and sellers across our country.”
Pareja presented his vantage point on Clear Cooperation as someone whose business operates in 22 countries outside of North America, where a unifying policy such as this doesn’t exist. He explained that the unification of the system that CCP presents is something those in the United States may often take for granted.
“When people say it’s bad for the consumer, that’s just selfish bullshit. The best thing for the consumer is to have as many eyeballs exposed to it as possible” he said. “CCP makes us compete in value and service. If we start hoarding inventory, that creates pay-to-play schemes as well as fair housing issues by definition.”
Turning the conversation toward lawsuits and the DOJ investigation, Lamacchia said that with Donald Trump assuming the office of president, that he expects the “DOJ to get their wings clipped, and they deserve it.”
Pareja agreed, adding that REALTORS® “do a noble thing…I think we’ve been attacked as a group by ambulance-chasing attorneys who don’t give a goddamn thing about the consumer or us.”
Lamacchia then shifted the conversation toward broker-to-broker compensation, to which Pareja said eXp is not doing broker to broker as it was turning into a legal maze and not serving their business.
“Our whole goal is how do we keep the consumer at the center of the transaction—how do we serve them the best way possible?” he said. “Can you imagine shoving an eight- to 12-page contract in the face of someone who has never done this before? That’s when we said no more broker to broker, we’re going to write all of our own forms.”
Lamacchia agreed that in his business, not doing broker-to-broker compensation and achieving it via other routes has been “going generally pretty well.” He clarified that both he and Parjea are “proponents of utilizing contracts that obtain compensation directly from sellers,” but will still work with other brokerages who are doing broker-to-broker compensation (and have policies and forms to handle this situation).
Lamacchia and Pareja then turned toward the main focus of the panel: “crushing it” in real estate.
Pareja said that the primary focus of business right now is to “focus on sellers who have to sell.”
“Buyers, there’s always upward pressure… but the only sellers are the ones who have to sell,” he said. “There are going to be sellers in your database that you put into a home two, three years ago—that you would never call because why would they sell—who are in financial trouble.”
His advice would be to reach out to those you’ve sold a home to in the last five years, and send them an email congratulating them on the equity they’ve accumulated.
“I would say ‘I have a bunch of buyers who are very interested in your neighborhood. If you know anybody who has a home just like yours that would be considered interested in selling, please call me,’” he continued. “Most likely those sellers aren’t going to reach out to you because of their embarrassment. They don’t want to tell you they’re behind on their credit cards or they’re underemployed.”
Pareja noted that you should “figure out exactly how you can generate leads that’s sustainable to who you are,” and, as Lamaachia added, you need to “hit the gas.”
Both Lamacchia and Pareja said that you should never be doing the minimum—you need to be all in to be able to succeed through any challenges, as they both did through the 2008 housing crash.
Wrapping up the session, Lamacchia and Pareja shared their closing thoughts:
Lamacchia: “You’ve got to get comfortable being uncomfortable.”
Pareja: “Figure out what your God-given talent is, and go all in on that.”
