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They Said Buyers Should Pay Their Agents—Then the Market Got Complicated · The Real Estate Agent Playbook

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  remember when 2,024 all the agents
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  were panicking over the buyer's agent disappearing
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  and the buyer commission lawsuits
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  panic set in people were talking about having to
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  become a listing agent overnight
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  which as we know is difficult in this industry
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  people were concerned
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  that buyers would not have representation
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  and then all of a sudden
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  everything changed
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  with the raising of interest rates
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  and the interest rates not dropping
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  this was the actual
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  phenomenon that we should be worried about
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  not the buyer's agent disappearing
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  because the buyer's agent is needed more now than ever
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  as you as an agent at least need to understand
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  if not leverage if you're not already so let's dive in
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  what's up guys I'm Jeremy Kane
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  with the real estate agent playbook
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  in the Wolf Pack at EXP
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  super excited to dive into this one
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  I drop content to help you win every single day
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  at the game of real estate
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  on this channel 2 times a week
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  so if you need any of that
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  do your thing like comment
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  subscribe but I do help agents just like you
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  discover their business make it fun again
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  grow organically
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  without having all the cost of paid leads
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  and all of the things so if you want any of that
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  book a call below but let's get into this
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  so when the commission lawsuits were coming down
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  and brokerages were jockeying for position
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  and how they were going to handle the new regulations
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  handed down
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  by the National Association of Realtors
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  everyone was in a panic it was loud
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  it was heavy people were concerned about their
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  you know possibility
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  of not even being able to make money in this industry
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  and ultimately
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  that was a bump in the road
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  compared to the extended time frame
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  of higher interest rates
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  and interest rates not lowering after the election
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  and all the things that we thought were on the horizon
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  the market had other ideas
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  and this is something that
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  you know truly put the buyer's agent
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  commission thing kind of on the back burner
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  because buyer's agents are needed so much
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  in this current market yes
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  interest rates are high however
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  as we know in the industry
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  sellers
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  are having a little bit more trouble moving properties
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  so they're offering concessions and
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  you know
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  buy downs and all the things that come into play
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  giving the buyer's opportunity
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  but also a laundry list of options that
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  if they're not explained correctly
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  could end poorly for them
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  so what's that mean it's opportunity for you yes
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  as a buyer's agent to swoop in and provide that value
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  and help work through an already confusing process
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  adding in you know
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  rate buy downs and concessions and temporary buy downs
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  and three two ones
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  and all the things to bring a little bit of calm
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  because as an advisor for somebody who's making
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  probably the biggest purchase of their life to date
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  that is absolutely a superpower
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  that you have that
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  you can easily bring forth to your buyer clients
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  making your commission reasonable and understood
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  and oh by the way
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  the sellers are needing to pay that commission
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  more and more now than ever
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  because it's becoming harder to sell homes
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  yes when homes were flying off the shelves
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  the buyer agent had a completely different role
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  and was still needed in that time
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  however in this time
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  they are needed by the sellers
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  who is still more than willing
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  on most of the transactions
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  while 100% negotiable
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  paying that buyer's agent a significant commission
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  similar to what we have been used to in the industry
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  so yes there was a time where the buyers
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  thought they had it all figured out
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  you know
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  and that kind of is a cycle that we're going to see
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  the market although
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  you know we feel like it changes so much daily
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  the truth is it's a longer period of time
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  information just travels a lot quicker
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  and honestly an eighth of a point reduction
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  or increase in interest rate
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  isn't the end of the world
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  and can be easily changed with the credits
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  and the moving around of cash to close
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  and things like that so it's not that big of a deal
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  but the market does ebb and flow as we go right
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  a lot can change in two to three years
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  but the truth is
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  is that the buyer and seller mindsets are really
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  you know slower
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  to change they always say
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  sellers are the last to know
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  that the market has changed
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  and that breeds true
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  but also is very important to understand
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  if the sellers are the last to know
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  they're the ones making the decisions on these offers
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  and you know
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  price reductions and all the things
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  and so that's an important piece of the puzzle
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  as we get into a market in two to three years yes
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  buyers do become more comfortable
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  for instance in 2020 right
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  appraisal gaps and inspection waivers
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  and all the things were incredibly common
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  by 2 thousand 22 people were coming to me saying yeah
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  you know we have some money for an appraisal gap
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  will you you know
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  help us understand what that means
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  what does an inspection
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  waiver truly mean in your market
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  cause I was never of the opinion that we should wave
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  the inspection
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  maybe the right to object to certain things
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  and understand that
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  but have the inspection for the education
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  so we talk through that and the truth is though
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  those buyers were coming to me with that information
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  so they had figured out the market flow
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  they had heard these key terms
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  due to amazing social media content
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  by my amazing colleagues in the real estate industry
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  and sometimes they knew exactly what it meant
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  and sometimes they didn't
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  but we'll leave that aside
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  but as we go here you can see that
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  you know two to three years
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  the buyers kind of get adjusted
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  they're understanding what's going on in the market
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  they have some key terms some language
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  some and so on
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  but there's never that time where they are the expert
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  unless they've been through the process several times
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  and so it's very easy by year two or three
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  when the market is predictable and nothing has changed
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  for buyers to feel more confident however
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  that's probably
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  the time where they are most dangerous to themselves
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  and their investment is understanding
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  you know just going in full force
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  well we have to have an appraisal gap
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  we have to offer over we have to do all these things
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  and not knowing that there are other ways to do this
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  besides just what you're seeing on the headlines
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  and all of that so flip that around
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  as we move through this higher
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  elevating inventory market
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  it's a new piece right
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  it's understanding that okay
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  higher interest rates have been here for a while
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  we you know
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  had the 3 2
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  1 you know
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  phase where everyone was doing temporary buy downs
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  date the rate blah blah
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  blah that crap right
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  however now we're finding out that that date the rate
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  marry the home it was more like well
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  you might be married
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  might be dating for an extended amount of time
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  and you're already married to the home
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  and you're married to that higher interest rate now
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  cause it's been two or three years
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  and so that's a super important piece
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  to understand is that the buyer's agent has the piece
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  they have the pulse on the market or they should
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  as you as a buyer's agent need to understand
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  that's where your value comes in
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  understanding that piece
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  taking these buzzwords and these headlines
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  and making them realistic
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  and having the buyer
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  truly educated on what they're getting into
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  because the last call you wanna receive
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  as a buyer's agent is hey
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  Jeremy you know
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  I thought this was gonna happen and it didn't you know
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  and you told me it would right
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  and that's not what you need to do
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  so you need to have that education
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  conversation with your clients
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  therefore
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  providing your value because if the market does change
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  sellers are going to be able to pull back on
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  what they're offering for commissions
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  and what they're paying for commissions
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  right now when they're getting one or two offers
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  you know that's where those
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  those commissions might be a little less variable
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  right
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  and a little more driven by the buyer who you know
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  would be responsible for those commissions
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  but they're saying hey
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  if I'm gonna buy this house
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  you're gonna pay this amount to my buyer's agent
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  it's all negotiated in the contract
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  it's all you know
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  relative as we go in this current market
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  the sellers are still paying
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  so the truth is the buyers need you
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  but so do the sellers in this time
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  where it's not just throw it on you know
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  throw some paint at the wall
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  put it up on the market and it goes for multiple offers
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  and so that's huge right
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  so now buyers are now the hottest commodity
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  for the first time in my 12 year career
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  people are you know
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  putting away the buyers are liars and
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  you know list to last kind of idea
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  and buyers have the opportunity
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  buyers are turning quicker than even the listings right
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  so that's huge because they have options
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  they have opportunities and with the right buyers agent
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  they are educated
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  in understanding that this is a massive opportunity
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  that the market has shifted
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  and they're going in
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  and they're taking full advantage of this
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  getting into home ownership
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  while affordability on you know
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  the front end seems a little bit high
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  when you have seller concessions
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  and you have the ability to lower interest rates
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  and get that rate that makes sense
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  you have the opportunity so the truth is
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  and if we pull back from all of this
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  you as an agent on both sides of the transaction
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  get paid to solve problems
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  so it's about identifying what the pain points are
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  what the problems are for your clients
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  both buyer and seller
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  and understanding what the market's answer is to that
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  how do we handle that in our industry
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  well as a listing agent
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  if we are putting the home out on the MLS
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  and all the things
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  it's likely that the contract is gonna come in with a
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  you know seller paid buyer agent commission right
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  if you want to maximize the opportunity
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  and maximize the visibility and the value
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  you need to understand that
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  expect to pay somewhere between
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  you know whatever the market rate is at that time
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  the good news is for you
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  is we can look at the bottom line at that point
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  pre inspection obviously
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  and say okay
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  this is what your take home is gonna be if we
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  you know
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  pay that whatever percent commission is in the contract
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  and as we go you're just solving problems right
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  because if that in number is higher than
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  you know their bottom line
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  then you're good to go
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  they don't care where the money goes
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  they understand that you know
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  that's how the industry works
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  they understand that
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  that buyer's agent is actually an asset to them
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  if appropriately introduced right
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  as somebody who's gonna coach their clients on
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  you know how to negotiate an inspections
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  and how to walk through a house and make an offer that
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  you know is based on what you see cosmetically
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  what you know about the property
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  and not waiting on the inspection to
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  you know beat the seller up again
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  that is a huge value add for a buyer's agent
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  somebody that comes in when
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  they're not asking you to replace light bulbs
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  and replace a furnace because it's 10 years old
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  instead of having it cleaned or serviced
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  and those eliminate the hiccups in the process
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  so if you don't remember one thing from this video
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  remember that you get paid to solve problems
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  and you need to figure out what those problems are
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  even if it's a chat GPT search
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  figure out what those problems are
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  ahead of when your clients bring them to you
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  because if you have result based answers
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  for them to solve those problems
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  that's when you become the superhero agent
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  that everyone is going to refer
• 11:30
  and send more business to
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  so if you're interested in talking more about this
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  a realtor game plan call below
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  I would be happy to dial in a strategy to help you win
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  both on the listing side and the buyer side
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  because the truth is the reason I love this industry
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  is helping people solve problems
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  and if I can help you as an agent
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  solve some problems for your clients
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  that's more impact than I'm able to have on more people
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  and that's what I do this for
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  so we'll see you next time
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  like comment subscribe and go uh
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  get another win today bye bye