Latest / The Real Estate Agent Playbook / Game-Changer or Game Over? eXp Realty Ends Buyer Broker Compensation

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Game-Changer or Game Over? eXp Realty Ends Buyer Broker Compensation · The Real Estate Agent Playbook

• 0:00
  the real state industries of the crossroads
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  everything's changing and my brokerage
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  EXP Realty just came out and said
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  they are no longer going to be offering broker
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  broker compensation at this critical time
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  it's important that we understand
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  the impact that this decision
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  could have on your business
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  whether you're an EXP realty agent
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  or you are looking to purchase a home
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  that is listed by an EXP realty agent stay tuned
• 0:31
  what's up guys
• 0:31
  Jeremy Kane real estate agent playbook
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  it is August the time has come
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  the NAR lawsuits are coming down
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  I am here to help you navigate and hopefully
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  eventually move past what we have to do to change
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  and start to give you
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  ideas on how it can be a game changer in your business
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  so if you like what you hear today
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  please like comment
• 0:52
  subscribe stay in touch
• 0:54
  if you are on the podcast
• 0:56
  let me know you're over there
• 0:57
  it's a little bit different platform
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  but throw me a review and definitely
• 1:01
  share any of this content across all platforms
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  with your favorite real estate agent
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  so let's get down to it
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  EXP came out in a bold move and just said look
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  we're no longer going to offer broker
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  to broker compensation this is a shock
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  it's scary and ultimately
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  when you step back and think about it
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  there is still an opportunity for the
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  seller to pay a buyer's agent
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  and compensate them
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  based on where we're at in this settlement
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  if you're me I'm not sure that that is
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  you know sign seal delivered
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  but that's what we're going with right now
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  at this juncture
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  not having the final DOJ settlement and ruling
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  and all of that clear
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  but with that said
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  when you step back and you look at the lawsuit
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  and where it came from
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  it was exactly from that the lack of transparency hey
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  I'm gonna charge you x percent
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  and I'm gonna give you why percent to the buyers agent
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  our contracts in Colorado have said that
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  so it was a little more transparent
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  but it was still hey
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  this is what I'm paying you
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  and now
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  you're gonna take some of that and pay somebody else
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  at the end of the day
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  the seller wanted the opportunity to
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  you know dictate how much they're going to offer
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  another agent to represent a buyer uh
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  you know essentially against them
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  which we're not gonna go there
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  there's absolutely a ton of reasons why it's positive
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  for a seller to
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  have a buyers agent on the other side
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  but that's not what this one's about
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  so when you really step back and look at it like
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  okay well
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  EXP didn't eliminate the buyers agent compensation
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  right they didn't do that
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  they just said that
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  the seller is now going to be responsible
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  for paying that
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  it'll still be on
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  the settlement statements in Colorado
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  and you know however you
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  you know do your stuff in your state
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  that's that's completely irrelevant at this point
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  but the the brokerage is no longer going to pay
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  the other brokerage in some sort of
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  back roads agreement or backdoor deal
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  it's got to be more transparent
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  and so with it with that said
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  if you really step back and think about it
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  is the DOJ just gonna be like okay yeah
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  it can't be on there my last
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  but it can be plastered all over the internet
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  it can be on the signwriters
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  it can be on your
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  your secret website that you're creating
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  that you're in charge memberships to
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  like ultimately
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  are we just kicking the can down the road
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  or are we actually here to solve this problem
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  and I believe that that's what EXP has done truthfully
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  I believe that many
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  other brokerages will follow in this footstep
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  and at the end of the day
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  once this all shakes out I believe
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  this is going to be a way
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  that we are operating business wise
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  moving forward and so why not just go do it
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  what better way to change your business right now
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  than saying hey
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  there was this lawsuit
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  we got these workarounds and so on
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  we'll talk about workarounds in a second
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  but just to go full in and be fully transparent
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  and give the DOJ the consumer
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  everything
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  in the transparency that the lawsuit was seeking
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  as it started but furthermore
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  more than just semantics
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  it's taking what the industry is
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  going to need to do in you know
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  reaction to what this lawsuit
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  means for the way that buyers
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  agents and listing agents
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  have conversations about commissions and compensation
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  so I promise you we talk about the work around mindset
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  let's talk about this a little bit deeper
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  there's another brokerage in my state that saying hey
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  we have this work around website you know
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  you can post your commissions here
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  there's people saying that they're gonna you know
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  offer you know a house for 100,000 and you know
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  the number
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  the last number in it will be the broker compensation
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  putting keychains on keys
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  putting signwriters on signs
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  the ultimate truth is if we can't have a conversation
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  and just call the agent and ask what they're offering
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  then what are we doing as agents right
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  we get compensated
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  extremely fairly for the work that we do
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  a lot of times and you know
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  as we move forward this is something that you know
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  the workarounds will be crushed
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  there will be future lawsuits and litigations and
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  and all of that
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  based on all of these little workarounds
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  why don't we put it back in the sellers hands
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  and the buyers hands and have the conversations
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  and have that stuff right now right
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  there is a major change coming to our industry
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  as we speak right this second
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  why don't we look at it make a change
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  it's going to be long lasting versus this work around
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  and once that gets taken away
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  then this work around
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  then this work around you can go ahead and do that
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  me as an agent I'm going to you know
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  take this seriously understand what the
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  the court case was about
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  what the plaintiffs complaint was
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  and make my business better for my clients
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  both buyer and seller
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  and so the work around mindset is great
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  and it's cute and funny and whatever
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  however things can change
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  and I truly believe that
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  this is going to be a great change to the industry
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  but even more so
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  a great change to the opportunities that I have
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  as an agent taking this and making the adjustment
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  right give me the rules
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  I'll play in the sandbox
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  we now have the rules not only from you know
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  the the NAR you know
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  your your local Realtor boards
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  your national realtor boards your MLSs
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  they're all giving out the rules
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  and hopefully your brokerages
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  and please please
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  please understand that
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  you can have these conversations with your broker
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  your manager broker I'm not your manager broker
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  I'm just here to give you some ideas
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  and some context
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  to what is being trashed around the internet
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  about EXP not
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  you know paying buyers agents at all anymore
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  and that's absolutely not the full truth
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  EXP will not be offering that co op come you know
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  commission however
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  were they ever really
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  it's always come from the seller's pocket
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  in most cases but it's always been negotiable
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  right the buyer could have paid
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  the seller could pay
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  they can bring it together and go from there
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  so we're taking that b to B piece out of it
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  which will allow for much more transparency
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  we're now having these conversations in Colorado
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  it's in the contract to buy and sell
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  what the buyer is gonna pay the agents
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  what this the sellers gonna pay the agents
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  and it makes a lot more sense here
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  now let's get to the nitty gritty
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  Colorado recently said that the
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  it is their suggestion that we do not as agents
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  divulge what the seller is willing to compensate
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  the buyer's agent
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  if you've really step back and think about it
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  is it any different if someone calls me and says hey
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  what is the co op offered by the you know
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  seller per the listing agreement
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  is it any different if I said hey
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  it's x percent or if I said hey
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  they're willing to take X percent less
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  because it's a divorce
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  or because they're really hurting financially or XYZ
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  all these other things
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  that were fiduciarily not allowed to expose
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  because it could affect our sellers bottom line
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  so you step back and like okay
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  I get it right this is hard ball
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  this is a big change as a buyer's agent
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  you know how am I gonna do that
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  but at the end of the day
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  if it's not floated out there
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  and it's 100% negotiable at the time of
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  the contract between buyer and seller
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  then isn't it a benefit to the buyers agent
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  can you say okay
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  we're gonna go see this house
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  we're gonna write an offer
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  you have an obligation to pay me
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  based on our buyers agency agreement
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  you know and whatever that number is
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  I'm gonna put in there
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  and we're gonna offer this price
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  or full price or whatever
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  but it eliminates a lot of the he said she said
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  for the seller side if they're
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  you know saying hey
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  I only wanna offer 1%
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  you don't have to put that out there as negative energy
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  right as you know
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  hey this seller is only offering 1% right now
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  we can talk about how to manage that side of it
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  all you want and talk about why a buyer's agents
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  important to the seller and all those things
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  but that's not what this is for
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  but if you really step back and you think about okay
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  this is an opportunity for me to market the property
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  to everyone right
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  and if the seller is steadfast on
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  you know a low percentage number or whatever that is
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  that maybe
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  you don't think will draw a lot of attention
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  you can have that
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  but then when that offer comes in and it's higher
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  the seller can accept it right
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  the seller can at that time be like
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  okay well
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  this is my net this makes sense
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  it's our only offer and go with it
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  or if it's a multiple offer situation
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  the seller can say okay
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  well that's great
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  I don't really care what I'm paying the buyer's agent
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  I only care what's coming to me at the end
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  so let's look at that with each contract individually
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  and what's being offered
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  or what's being asked of me to pay and go from there
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  the seller could save a lot of money
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  if buyers agents are going low to win the win the bid
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  right but as a buyers agent
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  now that eliminates that whole awkward conversation
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  right hey
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  you know I have this listing agreement at X
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  but they're only willing to pay
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  you know P right
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  and so you have to bridge the gap
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  so do you wanna see that
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  if you're going to absolutely have to bridge the gap
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  knowing all full and well
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  that everything is negotiable
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  at the time of the contract
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  between Byron Seller
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  and that is the take home point
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  why are we putting ourselves through this
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  hazard of having these conversations
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  and it's important to have conversations
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  that the game has changed
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  this is compensation it's now variable
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  this is what I charge this is my value
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  so on so forth buyers and sellers
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  but having putting numbers to it
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  when we absolutely have no numbers that could come
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  when we don't have a buyer in a seller
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  we don't know what those numbers could or should be
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  or what they are required
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  like essentially
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  we're just guessing right as a buyers agent
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  you're if you have to have an agreement sign that says
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  they're obligated to pay this amount of money
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  and you can take less but you can't take more right
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  if we have to have that and then the seller is saying
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  okay well
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  I'm reading the headlines
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  I don't have to offer as much
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  I don't have to do this then what
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  it doesn't matter right
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  this buyer could have signed an agreement for
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  X percent
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  and this buyer could have signed for less than that
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  and this seller could say
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  I'm only gonna accept this
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  or I'm only gonna offer this
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  and this seller could send
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  I'm gonna offer this much
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  now it's a conversation with the seller
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  if we're going to divulge that information or not
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  because if we're using as a marketing tactic
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  in my opinion as a seller
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  I'm not gonna want that number floated out there
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  because I'm going to say okay
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  let's just see what comes in right
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  because if I get X I'm I'm more than willing to offer
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  you know that percentage
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  but if I get less than that I I mean
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  my numbers not necessarily work out
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  so
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  I'm not really gonna agree to putting that out there
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  and and be hamstrung by that
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  let's talk about it when we see the actual numbers
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  when it comes down to business
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  and that's the take home here is
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  you have to understand that it is a negotiation
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  we are professional negotiators
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  we are paid to do that by our clients
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  and we can now have this negotiation conversation
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  without saying this is what it is
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  this is what it is if he doesn't pay
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  you're paying me then the story right
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  well at the time of contract
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  if the seller comes back and says hey
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  I'm only gonna pay this then you say well
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  you're you're you owe me this
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  so do we wanna ask for a concession
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  do we wanna upper off for a little bit
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  there's a time to negotiate that
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  and change how that looks
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  and I will truly believe
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  now that I've actually step back and thought about it
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  this is exactly what the DOJ and industry wanted
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  and I think eventually they'll get it right
• 12:53
  the DOJ the plaintiffs whatever
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  they're going to get what they want
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  and so why don't we as an industry
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  take these step forward to change our business
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  it's a little bit uncomfortable
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  but honestly
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  I believe it's a lot less uncomfortable than saying hey
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  depending on what the sellers gonna offer
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  your might have to come to the table with you know
• 13:12
  20 grand
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  or you might have to come to the table with no grand
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  right instead it's like okay
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  let's look at the situation
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  let's see what it is
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  this is what I charge this is what I charge over here
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  this is what I charge over here buyers agent
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  so we can have that
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  and it's all negotiated in the contract
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  now I understand that
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  all states have not put it in the contract
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  but I truly believe that Colorado EXP Realty and
• 13:36
  you know
• 13:37
  this whole settlement is they're really ahead of what
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  where we're going right it's not the workarounds
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  it's not that so we will see how it plays out
• 13:46
  but I want this take home message to be that
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  as an agent at EXP Realty
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  there will still be
• 13:54
  a seller offering compensation for a buyer's agent
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  so none of the stuff you read in the groups
• 14:00
  none of the stuff you're reading online
• 14:02
  none of the stuff is absolutely set in stone
• 14:05
  there has been watchdog articles
• 14:08
  you know watchdog
• 14:09
  consumer watchdog articles written that says
• 14:12
  EXP got it right what they're saying got it right
• 14:14
  look at the CEO Leo Perez video with Tom Ferry
• 14:18
  what he's saying there is that
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  this is where the industry is going
• 14:23
  so let's get there
• 14:25
  let's get to 100% transparency for our clients
• 14:28
  and let's be fiduciaries to our clients
• 14:30
  as we get compensated so well to be
• 14:33
  and at the end of the day
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  that's where it needs to be
• 14:37
  if you have any questions if you have any comments
• 14:39
  let's let's start the conversation
• 14:41
  but when you step back and look at this
• 14:43
  remove the semantics from it
• 14:45
  there is still buyers agent compensation available um
• 14:48
  through brokers at EXP EXP is just not going to pay it
• 14:52
  they're going to have the conversations
• 14:54
  the right conversations
• 14:55
  the transparent conversations with their sellers
• 14:58
  in order to have the sellers decide
• 15:01
  and then the buyers decide
• 15:03
  and then bring those together in contract
• 15:05
  and hopefully do what we love to do
• 15:07
  and that's get people into homes
• 15:09
  what I love to do
• 15:10
  help people build wealth through real estate
• 15:12
  but stay tuned this is an ever changing thing
• 15:14
  I will continue to
• 15:15
  update with the changes and what's going on
• 15:18
  but at this point in time
• 15:20
  don't believe the hype
• 15:21
  step back and look at the details
• 15:23
  and understand that it's not the blanket statement
• 15:26
  that EXP is no longer paying buyers agents
• 15:28
  so like comment subscribe
• 15:30
  we'll see you next time and don't worry
• 15:33
  it's all gonna be okay agents
• 15:35
  call me if you need me bye bye