Media blitz helps real estate industry address major industry upheaval

For Sale Real Estate Sign in Front of New House.

The National Association of Realtors faces a massive communications challenge after their industry rules were turned on their head. The new rules, which went into effect Aug. 17, were part of the organization’s proposed settlement to end class action litigation brought by home sellers concerning real estate commissions.

Although the settlement doesn’t prohibit offers of compensation, they’re no longer permitted on multiple listing services, which is where houses are listed for sale. Also, before they tour a house with a buyer, the buyers’ representatives now must have a written agreement that specifies their services and the agreed-to compensation.

The decision made major headlines – “New real estate rules could reshape the homebuying process” – but the NAR leaders felt there was a lot of confusing about what the changes would actually mean to consumers.

In the hopes of providing clarity, NAR embarked on a monthslong campaign to talk about the ins and outs of the changes, including the fact offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.

The goal was to help dispel rumors and help reshape the narrative to highlight that moves will bring more transparency to the process.

Following the proposal on March 14, NAR produced a variety of videos, briefings and podcasts to walk journalists and the public through the implications of the practice changes. But in the days leading up to their implementation, the organization conducted a full-fledged media blitz strategy.

NAR leaders, including President Kevin Sears and Vice President Nate Johnson, took part in interviews with major outlets like ABC’s “Good Morning America,” Fox News, CNN, The Wall Street Journal and USA Today. Sears and CEO Nykia Wright also spoke to industry-specific outlets such as the Real Estate Insiders Unfiltered podcast.

In total, those interviews garnered more than 300 airings and reached more than 10 million people, according to a Realtor Magazine, which is run by NAR.

“It’s critical that we tell our own story,” Sears, a broker from Massachusetts, told Realtor Magazine. The story mentions a TV interview in Portland when he corrected an anchor who incorrectly implied the existence of an “industry-wide” rate.

“Not only does it humanize our hardworking members and our industry, but it helps us separate fact from fiction,” Sears added.

Changing the ‘tenor’ of the conversation

Good PR is more than just selling products. It’s also about building trust and strengthening relationships.

Mantill Williams, NAR’s vice president of public relations and communications, told Realtor Magazine that by getting out in front of the story, realtors were able to help “change the tenor of the conversation.”

The campaign allowed NAR and its members to give potential buyers and sellers an accurate picture of the practice changes. It was also a chance to address any negative press, concerns or bad information, such as the belief compensation was a cause of today’s affordability woes.

“The National Association of Relators tells us that the most important factor to make housing more affordable is building more inventory,” ABC News correspondent Elizabeth Schulze said during a “Good Morning America” segment. “Bottom line: Still too much competition for too few homes.”

Erika Hansen was one of nearly 800 realtors from around the country to take part in the campaign. They did so by taking part in local media interviews, writing articles and using social media to educate potential home buyers and sellers about the changes and highlight the role of realtors in the process.

Hansen, a broker, told the ABC affiliate in Des Moines, Iowa that buyer’s agreements have always been an option. “It’s really meant to bring transparency as to what my duties to you are and how I’m going to help you through that process.”

A common misconception is there’s a correlation between a broker’s compensation and the likelihood of a home being shown or sold. Jennifer Stevenson, a veteran broker from Ogdensburg, New York, addressed that misnomer while talking with CNN anchor Victor Blackwell. She stated that in her 35 years of selling real estate, she’s never used the amount of possible commission to determine what house to show a buyer.

“When that buyer becomes a client, I owe them a fiduciary responsibility to find the best home for them at the best price and terms that they can afford — not what I will earn,” she said.

Williams told PR Daily that the initial outreach was successful because NAR and its state and local associations were able to create an extensive nationwide “surround sound” of communications outreach.

“We will continue the long-term outreach effort of communicating the value of agents who are realtors as these agents advise their clients in what is for many, the most important financial transaction in their lifetime,” she added.

Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.