The new commission rules provide entirely new opportunities to collaborate with buyers. California broker Cindy Hagley offers tips on how to embrace change and thrive.
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Click here to change your commission. In a nutshell, this change eliminates the practice of home sellers automatically covering the commissions of agents on both sides of a transaction and now requires them to have a buyer’s contract in place before working with a buyer. It has become.
In the days following the announcement of the NAR settlement, social media was filled with posts from real estate agents predicting doom, depression, and loss of income, convincing themselves and others that buyer’s agents would become a thing of the past. This is a problem. But the real problem occurs when we begin to believe the agents who believe this.
Because who else do you think was hearing this rhetoric and reading these posts? Consumers. Our purchasers. What did they think and feel when they read or heard these things, sometimes from their own agents?
We need to stop thinking negatively and embrace the opportunities that change in the National Association of Realtors brings.
Reframing the narrative about commissions
What if we shifted the negative perspective and talked about the positive changes these new rules will bring to buyers and agents?
Have you explained to your buyers that you have a dedicated buyer agent who will recommend and show you homes that fit their specific needs? You can’t just call a random agent and answer any questions they have about the market or the home they’re being shown. No more putting new, inexperienced people in charge.
Have we ever encouraged buyers to actually meet with the buyer’s agent and let us compete for their business?We have asked the seller to compensate the buyer’s agent from the sale proceeds. Have you educated them that it’s common to have a buyer’s agent fee added to the loan if the seller doesn’t want to work with them?
Did the buyer’s agent see this as an opportunity to increase our commission?
Why not ask for a higher commission based on your buyer-broker agreement? How much do you feel you’re worth? Everything is negotiable.
If the seller’s agent chooses wisely, you should negotiate. What happens if the seller refuses to offer coverage and the buyer can’t afford premium coverage? You can always renegotiate buyer agent fees with the buyer and ask for referrals in exchange for concessions. .
new rules
Please note that under the new rules, you will not be able to earn commissions from multiple sources. For example, the seller cannot pay half of the commission and the buyer pays the rest. (Talk to your broker about creative ways to get around this.)
I am a listing agent primarily in Northern California. Sellers ask me questions about rule changes, and after I thoroughly explain their options, they ask me for advice on how to proceed. I would advise them to offer a buyer agent commission. And so far, 100% of my sellers do.
And for those of us who represent buyers, what have we done to market ourselves to earn high commissions and stand out from other agents who offer lower commissions for poor service?Sellers We provide photos, videos, and staging for Why not invest in your buyers in the same way?
Be selective about the buyers you choose to represent you. And yes, choosing to work with a buyer is just as important as the buyer choosing to work with you. What if I offered chauffeured limousine or executive car service to the buyer for the first two tours?My cost is approximately $350 per tour. I will spend this easily with the seller. No other agent in my market does this.
Shall we talk about prospecting the buyer’s friends after escrow closes? If you like the buyer, chances are you’ll like their friend too.
We know your clients will give you rave reviews. Gather a dozen or more of your closest friends for a dinner party at a local restaurant. Don’t let cost get in your way. This is the same type of investment you would make with a seller for a listing.
last call
I used to just cold call for listings. We are currently recruiting buyers and sellers. When you ask, “Do you have any friends or family members who are looking to buy a home?” people say: That’s surprising. I get more leads from this question than from listings.
I treat these prospects with the same care and respect that I would treat any seller prospect. I’ll be honest: I had never done this before August 17th. What has changed?Rules. And my attitude.
The ancient Greek philosopher Heraclitus once said, “Nothing remains constant except change.” As some operatives like to say, we can suffer from these changes, or we can lead them and prosper. The choice is ours.
I choose change. I choose prosperity. what do you choose?
Cindy Hagley is a real estate broker, speaker, and trainer. Connect with her on LinkedIn and Facebook.
