Thanks to Holly I learned from the beginning of my Real Estate career to get the Buyer Employment Agreement before showing or having real estate conversations. Over the years, I have been chided and ridiculed for being steadfast. I've lost clients because " No One else asks for that". I feel this equalizes the playing field for Buyer and seller Agents. Express your value! It's about time!
🎯 Key Takeaways for quick navigation: 00:18 *🏢 Overview of NAR Settlement and Buyer Agency* - All EXP agents are covered by the NAR settlement, releasing them from liability. - New information and updates since the settlement announcement, including changes in enforcement and start dates. - The importance of understanding buyer agency in light of the settlement, especially regarding compensation negotiation and agreement signing. 02:32 *📝 Practices Going Forward* - Explanation of changes in compensation negotiation for buyer agents post-settlement. - Requirements for buyer agent agreements, including rate determination, definitiveness, and compensation caps. - Changes for seller representation, such as directing buyer agents to request concessions as part of contracts. 04:48 *📅 Timeline and Process* - Timeline breakdown from settlement announcement to enforcement stages. - Expectations for class action notifications and final approval hearings. - Awareness of potential delays and variations in implementation at state and local levels. 06:08 *🔍 MLS Enforcement and Responsibilities* - MLS role in enforcing new rules and potential fines for non-compliance. - Importance of abiding by buyer representation agreements for payment. - Variations in enforcement across different MLSs and the need for real-time feedback. 08:25 *🔄 Shift in Buyer Agency Dynamics* - Evolution of buyer agency from disclosure to representation agreements. - Legal distinctions between disclosure and representation agreements. - Importance of adapting to new practices and focusing on buyer agent value propositions. 16:03 *📝 Brokerage Activities Requiring Agreements* - Identification of brokerage activities necessitating buyer representation agreements. - Clarification on virtual tours and phone calls requiring agreements. - Importance of understanding MLS requirements regarding written agreements. 18:25 *🎯 Emphasizing Buyer Agent Preparedness* - Transitioning buyer agents' mindset to resemble listing agent practices. - Importance of articulating value propositions and statistics to compete effectively. - Development of new skills and muscle for negotiating and securing buyer agreements. 22:18 *🏡 Advice on showcasing buyer representation skills* - Articulate the value proposition of your buyer representation skills. - Highlight negotiation tactics and problem-solving abilities to potential clients. - Emphasize the level of service and attention to detail you provide. 25:16 *💼 Proactive approach to client engagement* - Initiate conversations with buyers before showing properties to build rapport. - Conduct professional strategy meetings to articulate your value proposition. - Utilize virtual meetings via platforms like Zoom or Google Meet for initial consultations. 26:57 *📈 Importance of professional strategy meetings* - Discuss market trends, financial comfort zones, and buyer needs during meetings. - Introduce clients to your network of partners and resources. - Empower clients by providing comprehensive information and guiding them through the buying process. 30:11 *🔧 Introduction of single property buyer broker agreement* - Address concerns about lengthy and exclusive buyer representation agreements. - Provide agents with flexibility and agility in adapting to new industry regulations. - Collaborate with agents to gather feedback and refine tools to meet evolving needs. 34:33 *🛠️ Adapting to changing industry standards* - Offer agents customizable tools and resources to cater to diverse client needs. - Advocate for transparency, flexibility, and consumer choice in real estate transactions. - Provide support and guidance to agents in navigating regulatory changes effectively. 43:06 *🏡 Open House Guidelines* - Agents don't need a buyer brokerage agreement when holding an open house for the seller. - No agreement is needed until a buyer expresses interest in representation. - Agents should clarify agreements with both sellers and buyers to avoid misunderstandings. 46:18 *💼 Company Support and Tools* - Company is providing new forms, including an updated buyer broker agreement. - Direct pay options for sellers to buyer brokers are being developed. - Plans to roll out state-specific listing agreements to ensure compliance and support agents. 48:37 *🏗️ Market Strategies and New Construction* - Discussion on market strategies, especially regarding new construction. - Emphasis on understanding compensation in new construction deals. - Highlighting the importance of transparency and knowledge about market inventory. 56:42 *📝 Company Updates and Marketing Support* - Overview of upcoming company support, including new forms and marketing materials. - Introduction of a buyer presentation tool for agents. - Focus on continuous improvement and customization of tools for agents' businesses. 01:00:05 *🌟 Best Practice Tips* - Treat buyers and sellers equally, emphasizing the importance of buyer presentations. - Encourage agents to understand contracts thoroughly and not fear using them. - Advocate for ongoing education, especially regarding the changing real estate landscape. 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i think it would be a good idea for agents to carry this 1 page form with them. so many times when i go to preview a property and a neighbor wants to see the property or a drive by wants to see the property.
What if your business is buyer’s agent based and buying Internet leads? You receive a call from a buyer who wants to see a property or multiple within the hour, are you sending them the buyer broker agreement before you even meet the person? Is Zillow sending them the buyer broker agreement before they request a tour? Sometimes they request to view more than one property, so the single property buyer/broker agreement wouldn’t work.
In the future can you be more specific on the agreed compensation to a Buyer’s agent. Example I write an agreement to be paid 3% does that mean the Buyer is on the hook to pay 3% period? What if the Seller offers 2.5% and I am willing to take that? I know I can go down not up but Do I amend the original agreement for 3%? Just some examples on how what you write the compensation effects what you can do later in the transaction. I can see a Buyer freaking out that they will be required to pay 3%, I’m sure there may be a certain way to write that to encompass no more than 3%? Do you think writing it high is a good way to go since you can always go lower but not higher?
as a buyer agent I want to know if the seller is offering compensation and how much before sending an offer because my client needs to know if they are going to pay for my commission and how much
Are buyer rep agreements going to actually be enforced? I had an representation agreement signed with a client and he went and bought a home with another agent and the broker did nothing about it, this was my previous broker btw, no EXP
The difference between buyer agreement and buyer agency was not addressed. An agreement is not an agency agreement therefore compensation agreements can be withheld while showing homes… From the NAR: What does it mean to tour a home? Written buyer agreements are required before a buyer tours a home for sale listed on the MLS. Touring a home means when the buyer and/or the MLS participant, or other agent, at the direction of the MLS participant working with the buyer, enter(s) the house. This includes when the MLS participant or other agent, at the direction of the MLS participant, working with the buyer enters the home to provide a live, virtual tour to a buyer not physically present. A “home” means a residential property consisting of not less than one nor more than four residential dwelling units. Does the requirement for a written agreement with buyers mean that MLS participants and buyers must enter into a written agency agreement? No. MLS participants and buyers will still be able to enter into any type of professional relationship permitted by state law.
Why are so many agents so dead set on trying to wiggle around this lawsuit so they can continue to show homes without any agreement they will get paid, and drive people all over town who are not even pre approved from a lender nor even listed the home they have to sell. Literally 98% of the BA in my market operate this way and then complain no one values their service when EVEN THEY don’t value it enough to require any commitment from the buyer. For goodness sake at least get people pre approved with a lender. I sell only new construction and it’s comical the number of agents whose reported “clients” go around their agent and call me directly. It takes me all of 5 minutes to get out of them they have no agreement in place, aren’t pre-approved, but have been looking with an agent…..sometimes for months on end. I couldn’t give a rats tail if some agent wants to waste their time, but most of these people think everyone else does as well. Most of the time the agents lie about this, but I did have one acknowledge a couple days ago her buyer wasn’t pre-approved yet she had been working with them for a long time. She wanted to schedule an appointment with me. I told her happily when they have reached out to a lender, no need for pre approval just contact a lender (and gave her lender information). She said it would be “too pushy” to ask her buyer that she has been parading around for months looking at houses to actually get a pre approval. Does anybody for a minute believe she had a BA agreement….please. 🤦♀️🤦♀️🤦♀️🤦♀️ This sad commentary is the norm….this industry needs a disruption and all the bottom feeders driven out. 4.1 million homes sold for 1.5 million licensed agents…..this complete oversupply is responsible for the vast incompetence.
Agency describes the relationship, buyer broker is an employment agree. Agency doesn't guarantee compensation in anyway shape or form in Arizona. Even before this Settlement, Agency did not guarantee compensation.
Right back to strong arm technique. I want a guy from sons of anarchy to rep me. I’m sitting in 2.7 Retirement Four bed and baths. You need me a lot more than I need you.
Thanks to Holly I learned from the beginning of my Real Estate career to get the Buyer Employment Agreement before showing or having real estate conversations. Over the years, I have been chided and ridiculed for being steadfast. I've lost clients because " No One else asks for that". I feel this equalizes the playing field for Buyer and seller Agents. Express your value! It's about time!
🎯 Key Takeaways for quick navigation:
00:18 *🏢 Overview of NAR Settlement and Buyer Agency*
- All EXP agents are covered by the NAR settlement, releasing them from liability.
- New information and updates since the settlement announcement, including changes in enforcement and start dates.
- The importance of understanding buyer agency in light of the settlement, especially regarding compensation negotiation and agreement signing.
02:32 *📝 Practices Going Forward*
- Explanation of changes in compensation negotiation for buyer agents post-settlement.
- Requirements for buyer agent agreements, including rate determination, definitiveness, and compensation caps.
- Changes for seller representation, such as directing buyer agents to request concessions as part of contracts.
04:48 *📅 Timeline and Process*
- Timeline breakdown from settlement announcement to enforcement stages.
- Expectations for class action notifications and final approval hearings.
- Awareness of potential delays and variations in implementation at state and local levels.
06:08 *🔍 MLS Enforcement and Responsibilities*
- MLS role in enforcing new rules and potential fines for non-compliance.
- Importance of abiding by buyer representation agreements for payment.
- Variations in enforcement across different MLSs and the need for real-time feedback.
08:25 *🔄 Shift in Buyer Agency Dynamics*
- Evolution of buyer agency from disclosure to representation agreements.
- Legal distinctions between disclosure and representation agreements.
- Importance of adapting to new practices and focusing on buyer agent value propositions.
16:03 *📝 Brokerage Activities Requiring Agreements*
- Identification of brokerage activities necessitating buyer representation agreements.
- Clarification on virtual tours and phone calls requiring agreements.
- Importance of understanding MLS requirements regarding written agreements.
18:25 *🎯 Emphasizing Buyer Agent Preparedness*
- Transitioning buyer agents' mindset to resemble listing agent practices.
- Importance of articulating value propositions and statistics to compete effectively.
- Development of new skills and muscle for negotiating and securing buyer agreements.
22:18 *🏡 Advice on showcasing buyer representation skills*
- Articulate the value proposition of your buyer representation skills.
- Highlight negotiation tactics and problem-solving abilities to potential clients.
- Emphasize the level of service and attention to detail you provide.
25:16 *💼 Proactive approach to client engagement*
- Initiate conversations with buyers before showing properties to build rapport.
- Conduct professional strategy meetings to articulate your value proposition.
- Utilize virtual meetings via platforms like Zoom or Google Meet for initial consultations.
26:57 *📈 Importance of professional strategy meetings*
- Discuss market trends, financial comfort zones, and buyer needs during meetings.
- Introduce clients to your network of partners and resources.
- Empower clients by providing comprehensive information and guiding them through the buying process.
30:11 *🔧 Introduction of single property buyer broker agreement*
- Address concerns about lengthy and exclusive buyer representation agreements.
- Provide agents with flexibility and agility in adapting to new industry regulations.
- Collaborate with agents to gather feedback and refine tools to meet evolving needs.
34:33 *🛠️ Adapting to changing industry standards*
- Offer agents customizable tools and resources to cater to diverse client needs.
- Advocate for transparency, flexibility, and consumer choice in real estate transactions.
- Provide support and guidance to agents in navigating regulatory changes effectively.
43:06 *🏡 Open House Guidelines*
- Agents don't need a buyer brokerage agreement when holding an open house for the seller.
- No agreement is needed until a buyer expresses interest in representation.
- Agents should clarify agreements with both sellers and buyers to avoid misunderstandings.
46:18 *💼 Company Support and Tools*
- Company is providing new forms, including an updated buyer broker agreement.
- Direct pay options for sellers to buyer brokers are being developed.
- Plans to roll out state-specific listing agreements to ensure compliance and support agents.
48:37 *🏗️ Market Strategies and New Construction*
- Discussion on market strategies, especially regarding new construction.
- Emphasis on understanding compensation in new construction deals.
- Highlighting the importance of transparency and knowledge about market inventory.
56:42 *📝 Company Updates and Marketing Support*
- Overview of upcoming company support, including new forms and marketing materials.
- Introduction of a buyer presentation tool for agents.
- Focus on continuous improvement and customization of tools for agents' businesses.
01:00:05 *🌟 Best Practice Tips*
- Treat buyers and sellers equally, emphasizing the importance of buyer presentations.
- Encourage agents to understand contracts thoroughly and not fear using them.
- Advocate for ongoing education, especially regarding the changing real estate landscape.
Made with HARPA AI
i think it would be a good idea for agents to carry this 1 page form with them. so many times when i go to preview a property and a neighbor wants to see the property or a drive by wants to see the property.
how will we handle new construction bonuses, and higher commissions ?
Today my local association said agents can accept no more than is in the buyers agency agreement. So are the days of bonus compensation over? 😐
Is Bonuses/additional incentives included in not being able to collect if it goes above your BAA compensation?
What about open houses?
What if your business is buyer’s agent based and buying Internet leads? You receive a call from a buyer who wants to see a property or multiple within the hour, are you sending them the buyer broker agreement before you even meet the person? Is Zillow sending them the buyer broker agreement before they request a tour? Sometimes they request to view more than one property, so the single property buyer/broker agreement wouldn’t work.
How are you going to start charging buyers directly as a buyers agent?
Holly just said the Veteran form would be avalble in JUNE. Does that mean it is available now?
In the future can you be more specific on the agreed compensation to a Buyer’s agent.
Example I write an agreement to be paid 3% does that mean the Buyer is on the hook to pay 3% period? What if the Seller offers 2.5% and I am willing to take that? I know I can go down not up but Do I amend the original agreement for 3%? Just some examples on how what you write the compensation effects what you can do later in the transaction. I can see a Buyer freaking out that they will be required to pay 3%, I’m sure there may be a certain way to write that to encompass no more than 3%? Do you think writing it high is a good way to go since you can always go lower but not higher?
Hello from Rose Holt in Michigan
Thank you all ! - Nicole Malka
What about Rentals???
Thank You eXp Realty!
as a buyer agent I want to know if the seller is offering compensation and how much before sending an offer because my client needs to know if they are going to pay for my commission and how much
Thanks all..
Isn't the point is what do in the future?
Thank you for the Realtor reality perspective, Kendall.
Thank you so much! I feel better now!
Great info. Thanks!
Are buyer rep agreements going to actually be enforced? I had an representation agreement signed with a client and he went and bought a home with another agent and the broker did nothing about it, this was my previous broker btw, no EXP
The difference between buyer agreement and buyer agency was not addressed.
An agreement is not an agency agreement therefore compensation agreements can be withheld while showing homes…
From the NAR:
What does it mean to tour a home?
Written buyer agreements are required before a buyer tours a home for sale listed on the MLS.
Touring a home means when the buyer and/or the MLS participant, or other agent, at the direction of the MLS participant working with the buyer, enter(s) the house. This includes when the MLS participant or other agent, at the direction of the MLS participant, working with the buyer enters the home to provide a live, virtual tour to a buyer not physically present.
A “home” means a residential property consisting of not less than one nor more than four residential dwelling units.
Does the requirement for a written agreement with buyers mean that MLS participants and buyers must enter into a written agency agreement?
No. MLS participants and buyers will still be able to enter into any type of professional relationship permitted by state law.
Why are so many agents so dead set on trying to wiggle around this lawsuit so they can continue to show homes without any agreement they will get paid, and drive people all over town who are not even pre approved from a lender nor even listed the home they have to sell. Literally 98% of the BA in my market operate this way and then complain no one values their service when EVEN THEY don’t value it enough to require any commitment from the buyer. For goodness sake at least get people pre approved with a lender.
I sell only new construction and it’s comical the number of agents whose reported “clients” go around their agent and call me directly. It takes me all of 5 minutes to get out of them they have no agreement in place, aren’t pre-approved, but have been looking with an agent…..sometimes for months on end. I couldn’t give a rats tail if some agent wants to waste their time, but most of these people think everyone else does as well.
Most of the time the agents lie about this, but I did have one acknowledge a couple days ago her buyer wasn’t pre-approved yet she had been working with them for a long time. She wanted to schedule an appointment with me. I told her happily when they have reached out to a lender, no need for pre approval just contact a lender (and gave her lender information). She said it would be “too pushy” to ask her buyer that she has been parading around for months looking at houses to actually get a pre approval. Does anybody for a minute believe she had a BA agreement….please. 🤦♀️🤦♀️🤦♀️🤦♀️
This sad commentary is the norm….this industry needs a disruption and all the bottom feeders driven out. 4.1 million homes sold for 1.5 million licensed agents…..this complete oversupply is responsible for the vast incompetence.
Agency describes the relationship, buyer broker is an employment agree. Agency doesn't guarantee compensation in anyway shape or form in Arizona. Even before this Settlement, Agency did not guarantee compensation.
Right back to strong arm technique.
I want a guy from sons of anarchy to rep me.
I’m sitting in 2.7
Retirement
Four bed and baths.
You need me a lot more than I need you.
Einstein?