Latest / The Real Estate Agent Playbook / Transparency & Trust: How Buyer's Agents Can Succeed Post-Lawsuit

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Transparency & Trust: How Buyer's Agents Can Succeed Post-Lawsuit · The Real Estate Agent Playbook

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we have reached the week that everything changes
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and I just wanna come across to you as a colleague
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as a friend as a mentor coach
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whatever you see me as here on the channel
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and issue a word of calm it's all gonna be okay
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we're all gonna make it
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we're still gonna make a living doing this wonderful uh
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career of real state
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and some things just need to change right
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and as you know the built in commission
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the home run commission
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um just as we always have said list or die
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um when we got that buyer on an exclusive right to buy
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uh chances were we were gonna get them pre approved
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and we're gonna get them under contract
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and we're gonna get paid
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and I think that that still exists
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it's just going to look very different
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and the conversations we need to have
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are just a little bit different
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so take a deep breath buckle up
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cause we're gonna talk about
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everything you need to know
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um everything that I'm doing as a buyer's agent
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uh to help uh
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make sure that not only my buyer gets a no home
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but I'm able to put food on my family's plate
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so stay tuned
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what's up guys Jeremy Kane
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Real Estate Agent Playbook
1:11
coming at you with
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all kinds of different ideas and strategies
1:15
all the time to help you win
1:17
every single day at the game of real estate
1:18
whether you're watching on YouTube
1:20
following on a social channel
1:22
or listening on the podcast
1:23
please show me some love um
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I love putting this content out for agents
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and I hope that uh
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we are building a community
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that you can rely on for just tidbits and new ideas
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maybe some motivation some mindset as we go
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so let's get into it the truth is that one data form
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in the MLS is going away across 600 MLSs
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and the truth is
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the commission lawsuit still is kind of up in the air
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so that one piece of data
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has flipped our industry upside down
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this is what everyone's talking about
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this is what everyone's focusing on
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the truth is
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is that it's instill panic among a lot of agents
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and I get it it's your livelihood
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it's how you put food on your family's plates
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I totally understand that
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but just because that
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place of advertisement disappears
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does not mean
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that the whole industry is going to disappear Overnight
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August 17th we will wake up
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things will be different August 18th depending on
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you know some markets already changed
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but the sun will come up on August 18th
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and we will continue to be able to serve our clients
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and make a quite fine living in this industry
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so what I'm urging people to do is
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ensure that you are worth the compensation
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you are asking up front right
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do the things that you need to do show
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take the actions and make sure that
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you are worth the compensation that you are
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you know
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asking your buyers to agree to pay you in the event uh
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the seller is not offering a buyer agency
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this is absolutely the forefront of what it can be
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what are you worth right
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and I hate to be the guy
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but I did a simple chat GBT search
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like
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average home prices went from 3:17 in Denver to 6:50
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in the 10 years you know
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from 2,013 to 2,023 since we did
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and have gotten paid by a percentage
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that has been quite a fancy increase right
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and I get it you do a lot of things
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you you help a lot of people
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you take on a liability you do a lot of things
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but let's not forget that
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there's people
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in other industries that help a lot of people
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and do a lot of things so I went to
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back to my old career said
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what was the average salary of a teacher in 2,013
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$50,000
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but which is the average salary of a teacher in 2,000
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23 $68,000
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so um
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we have to step back and understand that
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this is part of the reason that
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you know a lot of this is coming under
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under fire and probably with good reason
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um I'm not saying we get paid too much
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I understand there's liability
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understand you all work hard
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understand you made the choice to get in real estate
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but just take that into account
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when your you know
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your argument is we just help people
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we do so much for people when you step back from it
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teachers also do the same and they're not able to
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you know negotiate their own commissions
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in fact haha
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um they they would have to you know
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go on strike through the unions actually had an aunt
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my my most awesome pure
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wonderful loving
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never said a negative word about anyone
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aunt
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actually had to fight for her pay and go on strike
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and she actually ended up in jail
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funny story if you knew my Aunt Chris
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you would you would understand why it's a joke
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but the point is is that it's gonna be okay
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understand that we as agents have seen a very um
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steady pay increase due to the way we get paid uh
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grandma
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there's a lot more coming at us and all the things
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not here to argue that just take a step back
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and really think about that for a minute
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and think about how okay
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this is a little bit of a change
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but we can probably deal with it
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we could probably adjust our
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our verbage and our value stack
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and all the things in order to get to the next level
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so let's talk about the major change
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of the unilateral compensation being offered
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on the Metro List service
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there is over 600 MLSs in business today
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across our 50 states in the United States
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so you can imagine this is quite a
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you know there's a lot of people saying things
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there's a lot of people doing different things
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there's a lot of MLS rules
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every agent that um
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subscribes to an MLS
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signs a contract abiding by their rules
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so just make sure you
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as an agent know what that looks like right
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but
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what we are hearing is there will be some work around
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compensation will be offered on
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you know third party sites
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and signs and keychains and all the things
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and so my question is like
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how much impact does this actually have on you
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if you have a contract with a buyer
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that says that this is how much you get paid
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for the value that you provide
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then who cares where the conversate
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where the commission is advertised
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most states and pretty much every state has gone to the
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the compensation will be negotiated at time of contract
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um you know
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there are certain companies that are still
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you know
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and states that have put out broker to brokerage
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to brokerage agreements and things like that
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my company will not be doing that um
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but at the end of the day
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the seller and the buyer
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are going to have to negotiate and be
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extremely aware of what's going on right
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so last I checked the buyer
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typically brings the contract to the table
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and presents the offer to the seller right
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so why are we even going to find what
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these people are looking at on these workarounds
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because nothing that was signed earlier really matters
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and nothing that was signed earlier on the cell side
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really matters right
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certainly there is a stipulation that if
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you have a lower amount on your buyer's agency
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you cannot make more than that whatever you you know
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take from that whatever your broker says on that
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you do you do you
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but the truth is that the final commission
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where the dust settles is transparent on the table
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on the offer that the buyer presents to the seller
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so as a buyer's agent
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why don't we just put the offer that you know
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that is best for our client right
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and that would be that the seller pays it okay
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as as
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listing agents will talk about that in the next video
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how we're gonna react to that
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and how we're gonna present that
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but we just present the offer right
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there's no there's no fancy fancy to it right
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we present the offer we say hey
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this is what it looks like
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you got this as a positive thing
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you got these dates are really good
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you got this appraisal gap
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you got you know
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this whatever it is
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and this is what the commission structure looks like
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once you have that and it's all out there
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then it's negotiations back and forth buyer
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seller buyers agent
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listing agent and it's all hammered out
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it's okay that it's gonna be negotiated
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but I think that we are doing a lot of things that
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are making it more difficult on us as agents
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you know putting it out there
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that are sellers willing to take less
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by offering X amount of compensation
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or be willing to even offer compensation right
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the buyers agent having all these conversations
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well if this guy offers this percentage and
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and this says this and
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you know you'll have to pay that
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why are you having that conversation till
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you know till the buyer and the seller
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the transaction is is on the table
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and you can have that conversation right
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and the truth is
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if you present your value as a buyers agent
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by the time you're writing that offer
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you should have demonstrated that value right
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you've got them to that point
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it's a long road from hey
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I'm thinking about buying a house
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to submitting an offer on the house
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so understand that
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you have lots of opportunities
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to demonstrate your value
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and one of the ways is to not you know
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nickel and dime be like oh
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this person's only offering this
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because I guarantee if you bring them a great offer
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and see only offer on the table
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and you say hey
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this is what our
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this is our highest and best is where we're at
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it's likely that if it's good enough
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the sellers gonna take it
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regardless of what the agent gets paid
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as long as their net satisfies their needs
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so that's
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kind of the mindset that I want you to have
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as a buyer's agent is
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I understand gathering the data please
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please please understand the rules
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listen to your manager broker
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listen to your state
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make sure you're following your MLS rules
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those could get really expensive
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make sure you're following your Realtor board rules
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all of that
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but I ask you to just focus on the transaction
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do what's best for your buyer in most cases
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and she now have to have an agency agreement
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before you show a house in most states
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not all check with your state there
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um then you
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you can just have that agreement
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and
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you can use that agreement in order to draft an offer
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that makes sense for your buyer
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and here we are and so I just hope that
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that puts some people at ease
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and understands that all we have to do
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now is focus on demonstrating that value
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bringing that value so that's not like well
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why do you deserve that much money right
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if they're asking you that question
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there's problems so
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that leaves us with the general discussions
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and scripting that we're all looking for right
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when we sit down
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and we have the conversation with the buyer
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we can talk about this do not hide from it
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do not hide from the fact
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that this is something that could come up right
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you have access to data you don't have access to if the
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the buyers agent was paid so say
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you know here's a great scenario
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there's a neighborhood that your clients looking in
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why don't you pick up the phone
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just like you do when you send comps to your buyers
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far as value pick up the phone and say hey
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you know what was the
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what was the compensation structure on that
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did the did this seller pay
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you know the co op
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how much was it whatever you can do research right
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and we are allowed to disclose that information
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at this time no one's ever said we couldn't right
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so if you have a close transaction
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and you're trying to figure out okay
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how's this what's the average in here
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wouldn't it be cool if you had actual data
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for the last six months hey
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there's been five houses that sold
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this is the average commission
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and it was paid for by this party right
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wouldn't that be a good thing to have
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as a buyer's agent going into this meeting saying hey
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there's a lot of talk about commission
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I'm sure you've heard if you haven't
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this is what's going on um
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the point is that the commission is out in the open
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and that the buyer and seller agree to it um
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and everyone knows who's paying who and
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and how and so at time of contract
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will have those negotiations
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will do all of that
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but wouldn't it be really good for you to even
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on both sides to have the data of hey
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this is this how it shaked out in this neighborhood
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right real estates hyperlocal
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so you can use that
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and then when you go into write the offer right
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you can use some of that data
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as long as it's in your favor
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to talk to the listing agent say hey
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I did this but here's the deal if you know
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if you're looking at talking to an appraiser
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and giving them data think about this right
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think about that you know
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this house had this commission
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this house of this commission is paid for by XYZ right
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because it'll help the appraiser know what the net is
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and all of those things
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and so you can do a little bit of research
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just because it's not there within a click or your
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you know
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you can't have it printed out by pressing a button
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pick up the phone and call the agents
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so that you have that market knowledge
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if you can come into that
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and you become the market expert
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and you can provide a data set to the blissing agent
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to talk to their seller
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for you to talk to your buyer to have that information
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just so that you have a talking point
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and so that you can basically formulate a plan
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and just let him know this is gonna be negotiated
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a contract
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were required for you to sign this agreement
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this is what I charge this is my value um
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it is my intention to hopefully as your fiduciary
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have the seller pay that but in the event they can't
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we can work on all kinds of different scenarios right
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we can go back to your lender
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and see if there's any tricks they can throw in there
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we can you know
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do a lot of different things and at the end of the day
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we're gonna make this happen
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regardless if you are unable to pay and the house that
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you know you're negotiating on
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if you can't come to terms on the negotiation
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this included
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maybe that's not the house and go from there
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and so as we continue to work through this
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just make sure you're having open dialogue
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but you don't have to put numbers to it right away
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you can have the average talk
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you can have the statistic talking
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have the data because that's super important
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and you can have these conversations based on the data
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and based on what's going on
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in your market at the time
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based on all the rules that we are now subject to
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so ultimately
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if you're taking this you're picking up the phone
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you're doing a little leg work
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this could be a huge opportunity
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for you to add that into your value stack like hey
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I'm gonna I'm gonna do some research
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I'm gonna make sure that you know
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we're we're within line we're competitive
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my pricing for my value is competitive
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that's what we're gonna hope for
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I'm gonna I'm gonna get as much information I can
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certainly
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there will be agents that don't return your call
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don't tell you whatever but I mean
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at the end of the day if you're a buyer's agent
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you're on the on the MLS and your buyer just
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or your buyer just bought a house in there
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it's in your best interest to help
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understand how that goes so that the next house sells
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you know for that value or more cause if there's
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you know something that wasn't
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you know above board and you know
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it is what it is like then
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then you could be affecting the value of that house
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because the next house and the next house
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the next house do not have that information
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so go get that data
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don't be afraid to provide that information
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the more information and the more value you provide
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the better will be I just want you to know that
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the previous system did work
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it was an amazing ride
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it was you know what it was in Colorado
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we've always had the conversation on both sides that
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hey the sellers is can pay
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the buyers obligated to pay
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in my contracts that I've written um
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so we've had these conversations
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it's just now coming to fruition where it's more known
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and the seller you know may may raise a hand be like
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hey
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I saw that headline I don't wanna pay anything right
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so as we move through this as we go
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just understand that it's
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it's not how anybody wanted it to be right
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it's it's not easy
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it's not gonna be easy changes and easy
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but our justice system decided this
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the plaintiff came brought a case
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the justice system cited on their end and then our
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you know
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governing Realtor Board of ethics came out and said
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this is what you know
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this is our settlement since they were a large
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named commodity in that lawsuit
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this is what we are going to do
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now they're handing down the rules to us
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now our states are taking it
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and the laws
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and all the things are taking it and chopping it
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so make sure that you're attending
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all of your state meetings and
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you know paying attention to those you know
16:45
blasts at the you know
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governing bodies send out but at the end of the day
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there is a way for this system to continue to work
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and be an amazing lucrative career for you
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and that's what we need to really focus on
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I'm here to help it's not at all comfortable
17:04
I've been telling agents alike
17:05
that I have not had these specific conversations
17:08
I've sold a lot of houses
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so technically myself
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and maybe you that's washing
17:13
have sold zero or 10 or 100 houses
17:16
the playing field is level
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so go out there understand what is being asked of you
17:22
understand the rules
17:22
the guidelines and everything that's happening
17:25
be present
17:27
understand that
17:28
things are changing on a day to day basis
17:30
so make sure you are in the know so you don't you know
17:33
get yourself in trouble
17:34
but just develop a strategy
17:36
just develop how you're going to do about do it
17:40
and I would highly suggest
17:41
not going for the work rounds
17:43
just understanding okay
17:44
full transparency it is you want full transparency
17:47
this is how I'm gonna operate
17:48
it's not tricking anybody
17:50
there's no fancy script
17:51
that's gonna get you better conversion
17:53
it's just this is what it is
17:55
this is how we're gonna do it
17:57
this is how we operate
17:58
this how I do business as a professional
18:00
and I'm here to serve you
18:02
and my goal is to get you into the home and you know
18:06
have it be the best financial possibility for you
18:09
my goal over here is listing agent
18:10
is to sell your home
18:12
and put you in the best financial position possible
18:16
buyers Wanna buy sellers Wanna sell they come together
18:19
it's called negotiation it's a beautiful thing
18:22
and don't forget you real estate agents
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you are the professional negotiator
18:26
so take this as an opportunity
18:30
and let me know if you have any questions
18:31
but I can't wait to see you on the other side of this
18:33
and don't don't worry
18:35
the sun will come up on August 18th
18:37
like comment subscribe we'll talk to you next time