Sierra’s Commitment: Embracing Change for Agent Success in the Wake of the NAR Settlement

Dear Sierra Customers,

In the wake of the NAR settlement, our industry is entering a period of unprecedented change. But with change comes opportunity, and those who thoughtfully prepare and plan for what’s ahead will thrive. I’d like to share our take on what this means for the industry, for our customers, and for us. Perhaps most importantly, I want to keep you informed on what we’re doing to enable our customers to take advantage of this paradigm shift.

As you know, starting this summer, listing agents will be prohibited from offering buyer agent compensation via the MLS. Put simply, this means how buyer agents are compensated is going to change. Notably, the NAR settlement does NOT prohibit listing agents from offering buyer agent compensation off-MLS. And that’s where Sierra comes in. We are actively working on a solution whereby listing agents can offer buyer agent compensation on their sites, which is the prerogative of the listing agent. That said, the NAR settlement has not been approved yet, and these new commission rules don’t go into effect for several months. We want to keep pace with the situation as it evolves and avoid putting our customers in the crosshairs of the regulators by reacting too soon. But I assure you we will have a solution in place as the new “rules of the game” become clear and before the MLS changes go into effect.

Below are some other implications, and what we’re doing about them.

• Generating seller leads and winning listings will be mission-critical. We’re investing heavily in this area, on top of our existing seller lead capabilities. We’re launching Listing Locator, in beta next week, which will enable customers to identify potential sellers in their database, nurture and engage them. We’re developing integrations with third-party seller lead tools that complement our product suite. And, we’re working with our platform partners to develop seller-focused lead gen and lead engagement campaigns. Plus, we already have great existing tools in place that you can take advantage of now like seller lead sites and PPC services to generate seller leads.
• Organic website traffic will be key to profitability. The business of purchasing buyer leads is going to shrink, but the universe of buyers will not. This leaves an opening for agents and teams to win buyer leads via organic search due to strong domain authority and localized content and expertise. SEO and organic traffic has always been a strength of Sierra’s, and we are investing in tools, analytics and partnerships that will extend our lead on this front.
• Buyer agents will need to prove their value earlier in the process. Localized knowledge and expertise are irreplaceable and remain key to winning business. There are a variety of channels available to you today to demonstrate this expertise like community pages, market updates, and more. We plan to augment these features, for example with traditional forms of marketing like direct mail, and we’re also focused on providing our customers a data advantage that positions you as the undeniable expert in your market.

One thing that seems to be getting lost in all this unfair media coverage is that the real estate agent remains critical to the fabric of the economy and real estate industry. The service you provide changes lives for the better. We’re here to help you navigate this period of change, and we hope you’ll reach out with ideas and concerns as all this unfolds.

Sincerely,

Peter Maglathlin

Sierra Interactive CEO