232: Buyer Brokerage How To’s

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Talk of buyer brokerage is consuming the real estate industry right now and we are here to offer our how to’s for improving your buyer brokerage process.

Whether you’ve always had your buyers sign a buyer brokerage agreement or if you don’t think you ever will, this chat about how to better serve your buyers is worth a listen. As the industry shifts and changes buyer brokerage agreements have emerged as a first step to bring more transparency to the process for our buyers. In this episode we are quickly recapping the ever growing list of real estate lawsuits and the DOJ investigation and what they mean for the market. Then we are taking you through our recently created buyer brokerage cover letter. Consider this your new favorite tool to help your buyers understand the market and how we get paid plus have them less afraid and more empowered to sign a buyer brokerage agreement with you. We are giving you the exact breakdown of our letter so you can make your own. If you would prefer to grab our letter, you can do that at hustlehumblypodcast.com/bba. We want our listeners to be ahead of the curve on any changes and always provide excellent service and clear communication to the public!

In the episode, we discuss:

  • 4:30 Explore real estate lawsuits, DOJ impact, and ongoing NAR litigation updates
  • 10:29 Delve into the significance of real estate buyer brokerage agreements and consumer protection
  • 13:26 Discover the process of creating a buyer-friendly agreement document, addressing client concerns
  • 17:48 Explore real estate agent commitments and transparency to buyers, including a buyer loyalty agreement
  • 23:18 Delve into real estate agent responsibilities, proactive communication, and understanding fees
  • 30:14 Embracing Professionalism and Business Focus in Real Estate
  • 36:12 Strategies for Effective Client Communication and Real Estate Systems
  • 39:37 Navigating the Significance of Buyer Representation Agreements

The following is a rough transcript provided by Otter.ai.

Y’all still don’t get Are you surprised?

They still don’t get it. And then if they can find someone else who wants to work for free, I guess you get what you pay for.

Me people were saying I’m free. Yeah,

I would push you are totally not allowed

to say must stop. Hey, you have this form. You

have to sign this to

sign this now because we’ve been sued.

Yeah, she’s like, I’m trying to make sure you still have a job. And you’re over here wearing your underwear on the outside.

Hi, y’all. Welcome to hustle humbly. It’s Alyssa and Katie. And we are two top producing realtors in the Baton Rouge market.

We work for two different companies where we should be competitors. But we have chosen community over competition. The goal of our podcasts is to encourage you to find your own way in business to stop comparing yourself and start embracing your strengths. Hi, Alyssa, Haiti. I’m stressed out about this topic.

It’s a big one. Okay, it’s

episode 232. I’m gonna do my news desk, shuffle my papers vibe. And then we’re going to talk about our favorite topic. Real Estate lawsuits.

That’s not the topic actual epic today, and we are not diving into all of that. No, no.

The topic today is how to use a buyer brokerage agreement. Right. Yeah. I think there’s so much backstory to this. I don’t exactly know where to begin. But first, I would like to state for the record. This is not common in our market, as of the recording of this correct in the year 2023. And previously, I have never had a buyer sign one. Same. Okay. So disclaimer, yeah. But I think there are going to be a lot of people agents who are still tuning this out saying that’s not common in my market. Yeah. And and now what we’re going to talk about is why that is not the right mindset to have here. Like, we need to know how to do this. And we need to start implementing it. Before you are forced to write by your broker or your board or your state or a federal government mandate.

The podcast is listened to globally, globally. So we do have some listeners that have a lot of snow, it is required in their market already correct. And had some of them it has been for a long time. Yes. In our market here in Louisiana, we have not had this as a requirement. We have not yet started seeing people use it. But we are certainly preparing for it.

No, we, you and me. Yes, are preparing for it. And my office and Connie is preparing for it. I’m going to tell you a little anecdote, because I popped on to one of our local realtor Facebook groups that to be honest, I’ve been ignoring for a while, but I’m like, Oh, let’s see what’s going on here. Sure enough, one of the first post was about can you believe this? You know, listing in the MLS is offering no buyer side compensation. And then I got to read all the comments. And I’m like, Y’all still don’t get you surprised. They still don’t get it. They’re still angry. They’re still saying this isn’t going to stick like this lawsuit outcome isn’t going to change anything, that sellers are still going to pay buyer’s agents, which maybe some sellers will. But that’s why we’re going to learn about how to protect yourself if they don’t, what if they don’t even further? What if that’s not an option? What if the government says you seller cannot pay buyer’s agent?

Yeah, what have you need this? So

again, we’re still coming from a place of what if, which is fine, we’re preparing. But don’t be the agents that are the comments I read, I was very disappointed. I was just disappointed in the fact that you should be thinking about this from the angle of the consumer, you should be preparing, you should not be waiting for some big, big wig up on high to tell you what’s going to happen. It’s time to take control of your business. You own your business, and what happens tomorrow. If you’re not prepared, and all of a sudden you’re working with buyers and you’re not going to get paid. Sure. I mean, that’s not a very viable business. So we’re gonna we’re gonna go at it from that angle. Are you ready for updates? Yeah, we’re

just going to do a very quick update as of where the lawsuits are right now. We have done a whole episode when it first began. 214 Yes, Episode 214. Just making sure that everybody actually knew

what was going on. I feel like we were on we were pretty ahead of the curve here where

we weren’t there. We’re not going to spend a whole lot if you didn’t

listen to 214 I highly recommend And it because the interesting part about 214, as we talk about sites are Burnett, that lawsuit that was starting in October of 2023. From the pre trial perspective, yeah. And we go through that whole survey that Inman did that’s asking for what we think the outcomes are going to be. So that’s really it’s a really good eye opening exercise to think about, well, what does all of this impact right and now that we know the result, which y’all might have heard about a time or two, the result was that nor lost, yeah, that the big brokerages lost they were told to pay $5 billion in damages. It is being appealed. So it is not finished. Okay, so let’s go through the quick rundown of our for our bar commission lawsuits. Alright, so the first two were what they refer to as the bombshell lawsuits y’all these were filed way back in like 2019 It’s not like they just showed up seitzer Burnett, which is the one we’ve already heard outcome of and Merle which starts in the beginning of 2024 Those two were the originals right now we have this whole slew of copycats so so many it’s a fun little game. It’s gonna keep going with it. We’re gonna play now and I’m gonna spin through them really quick. So those two were sellers suing the real estate companies and NAR okay they weren’t suing Alyssa Jenkins or each individual agent they were suing these big companies and they were suing NAR and if you recall REMAX and anywhere who is Cole banker settled before the trial started okay but Keller Williams home services and nor are they lost Okay. New copycats. Gibson is also in Missouri so the same exact lawsuit basically except bigger and now adding every company every major company that wasn’t mentioned before their their defendants in the new one. Okay, that’s Gibson. Baton one is now homebuyers suing realtors or companies or NAR? Baton two is is one that’s trying to get a class approved and y’all the class would include home buyers across the entire United States who have purchased since 1996. Unbelievable. Literally, for the most people who are listening to the show, that would be every homebuyer that you have ever worked with. Correct. Okay. Burton is another suit. This one’s in South Carolina. March is in New York with homesellers que je team is in Texas, and it is the builders versus the Board and they’re naming specific teams. Wow. And then Phillips is in Georgia. That one is also sellers and no select. Okay, so Wow. Know what that’s like. 10 more lawsuits? Yeah. Okay. Underpinning all of this, and more important than any of this is the ongoing Department of Justice investigation, which is started in 2020. And 2021. They decided to settle they came to terms it was over, it’s popped back open. And now Gnar is trying to say you can’t do this. But y’all it’s the government. And if they want to investigate it, I’m pretty sure they’re gonna. And as I read in my Inman article, and I agree with wholeheartedly, regardless of every one of these other lawsuits, the greater disruption in the industry is going to come from the Department of Justice, yes. Okay. Have the most control because they can just come in and say, This is the like, this is the rule, like you can’t do this anymore. So that’s what’s gonna happen there. And Gnar is, you know, trying to fix their house. So the CEO is now early retire gone. They did get in a new I think it’s an interim though. person she came from like Chicago Sun Times, I think so that looked like a good replacement. I read then this week, in December, that they just hired a new communications and marketing person. And so in that article, this is what they’re talking about the new the new suite communications person who’s decided to step into this Hornet’s Nest, right. In addition to the harassment scandal Nora is also dealing with a growing dilution of antitrust commission lawsuits, y’all I’m reading from the article. The suits generally attack the practice of having sellers agents offer Commission’s to buyer’s agents and accused NAR of conspiring with various franchisors and brokerages to keep costs high. The first of these lawsuits goes to go to trial was known as seitzer Burnett. The trial ended in October when a jury ruled against NAR and various franchisors NAR has vowed to appeal the sites or Burnett outcome for for now, the verdict and the many similar cases represent a major question mark about the future have real estate work generally and are specifically against this backdrop, a number of big name industry players including Redfin, and REMAX and others have begun leaving NAR or giving their brokers the option to end membership in the trade organization. Nar also has currently has to contend with a number of more general industry headwinds such as a uniquely slow year for home sales in the Related trend of declining membership numbers. Yeah, it’s

like it all happened at one time,

I have all of this to say that Bahia This is the new communications, it comes to Narada uniquely challenging time, and that her role will likely intersect with many of these challenges.

She’s got a lot of work to do. blesser Yeah,

good luck, my friend. Good luck. I mean, we, I almost said, and we just get to sit here on the sidelines. But that’s actually the exact opposite of what I think we should be doing. And it’s the opposite of what we are doing. Right? We need to like be your pinkie ring, because you need to protect your livelihood, I still stand firmly by that. Consumers need a realtor to buy and sell a home. Agreed. I don’t think that has changed. The way you get paid is probably going to change maybe how much you get paid might change. Maybe but we need to protect consumers. Right? Because they’re actually also suffering even though they think they’re winning. I feel like they’re, they’re headed in the wrong path. They don’t realize you right, yeah. Because we’re not so good at describing what we do. That is accurate, which I think is a good lead into this. Yeah, so tell him what we’re gonna talk about.

today. We are going to talk a little bit about the buyer brokerage agreement. It is a I have just printed a sample one. Okay. It is lengthy. It is wordy. It was written by attorneys. I’m just going to briefly read a little bit to you. And you’re not supposed to be able to be like Oh, that makes perfect sense because it’s so wordy. Okay, that’ll like the sound of this the amount of compensation shall be blank of the purchase price of any agreement to purchase purchase option to purchase lease or exchange that may be negotiated during the term of disagreement, compensation shall be payable at closing. This compensation shall also be earned if any such agreement is negotiated within 90 days after expiration of this agreement involving any property introduced to the buyer. During the term of this agreement, the designated agent broker is authorized to negotiate for commission paid by the seller or listing agent the payment of which shall be credited against the buyer fee obligation under this agreement. However, the payment of any commission by the seller will not make the agent the sub agent or the broker of the seller agent shall promptly disclose any bonus to the buyer. But in any events prior to this contract ratification.

Is this the did did your office write this? Or this? Is the board one just the standard standard

and in the know any? If you read the listing agreement quickly like that, it sounds like it sounds very similar. Um, that’s why when I send the purchase agreement electronically, I send an email recap like layman’s terms of Listen, look at these lines. This is what this means. These are all the things we’ve talked about in person or over the phone like these documents are wordy word intimidating, and they are written from a legal perspective by attorneys to protect all parties involved. Yeah,

so put yourself in a homebuyer shoes, they get this document and they’re just like, oh, I don’t want

I don’t want to and you know, that while the goal of these forms is transparency, it can sometimes do the opposite. It can intimidate someone out of signing aggressively if they’re like, well, the other realtors aren’t aren’t making two L’s has made me do this. Right?

So and we get that I’ve heard that argument a lot actually. And seen it not well, they’re just gonna go. But I’m like, but did you try? Did you even give it an attempt? Like did you explain it to them? Did you tell them what like the you don’t work for free? Right? That they’re asking you to work for free? And then if they can find someone else who wants to work for free, I guess. Okay, yeah. Or you get what you pay for?

Did I share the story of how this was born on the other episode? Yes, you did. Okay, but can it can you? Yes. So, months ago, I had a girl who I knew from college reached out to me to help her buy a home. The funny thing is, it was like the third time that she kept forth. She kept reaching out. She would initiate the conversation over the years this went on for years after we graduated together. She met and we we were friends. Did you ever work together? Never Never. Okay. We were friends in college. We worked on some projects and a saint in the same group. And so she messaged me and I want to buy and I was like great, I’m so excited. This is what we need to do next. Crickets. I follow up I follow up finally I get a message from her. Oh, I bought with somebody else right really? I’d like That’s weird, but I didn’t really waste a lot. I never met with her. So I never even responded. Fast forward three years. And this is all happening via Facebook Messenger. So it’s so funny because we don’t otherwise. So it’s like, you know, a few years later, she messages me. And the previous message right above that from three years ago is where she rejected me. And let me know she had bought with somebody else fine. I wished her the best. Three years later, she reaches out again, you know, can you help me sell and then I need to buy? Sure I’d be happy to that here. Let me know how your schedule looks. Let’s chat crickets. So when she reached out, I think this was the fourth time over the core like this has to be a joke. Am I being punked too. So I thought, you know, this is the type of person that I would need to have sign a buyer agreement. Right? Because she didn’t get it. She was not understanding. But I didn’t want to just send over this scary documentary legal documentary was certain to ghost you on that. Right. So I made a pretty cover letter. Right?

That was simple. Yes. We spent a whole day on this. We spent and getting the word, getting the wording right. Yeah, we

spent a whole day me and Katie together. I was supposed to be here for podcasts. And it turned into that, yeah, where we were just making this so I could send it to her. And it would look friendly. And it would look approachable. And it you know, had the thing, all the things that we needed her to know on there. Yeah. And then under it would be attached the buyer representation agreement. Love it. So that way, what we have created here is a cover letter for this very intimidating document. Yeah. So that it is more approachable easier to understand. Yes. You know, if the time comes, we are required to present you.

This is like your listing presentation. Yeah, it’s your buyer present, like how does this work? Yes. Yeah. They need to know how it works. Because they don’t? Yes. And to be fair, I think we’ve kind of enjoyed that privilege of not having to explain it a lot, because they weren’t putting any skin in the game, as it appeared, you know, the seller’s gonna pay you to have an agent. You know, so we don’t really like maybe people were saying, I’m free. Yeah, I would push you are totally not allowed to say must stop. But that only became a rule here recently. Yeah, in the last couple of years. We’re not free. You’re not free. We’re getting paid. Yes. Getting paid. And all right. So the letter comes to me just

like you have a listing appointment before you list the house and you go to the house and you sit down at the table and you go over the documents and you explain everything, as we hope you are here at hustle, homeboy. And if you know someone who’s not please refer them to the podcast. Right? We’re happy to help. Yeah, we’re here to help. Okay. Instead of more listing appointments, you’re going to be having more coffee dates. Yeah, it’s a buyer consultation. It is a buyer consultation.

I think we should look at this as a moment though. We’re this is a good thing.

Okay. On that note, it 100% Is I have not yet officially started using this either. It is not quite in our market yet. But I will tell you what I have started doing which had gotten a little lacks after COVID. Okay, I am back to someone reaches out, hey, I want to buy a house. Okay, great. What is your schedule? Like? Because we need to schedule a consultation, you have to meet me in my office have to meet me. We’ve been meeting at coffee shops. Okay. We have coffee, it takes about 45 minutes to an hour. We’re talking about the housing market. We’re talking about what they want. I may even open my laptop and show them a few things. We’re talking about the process. We’re talking about how I get paid what that looks like, we’re we are deep diving and having a full on consultation. Okay, we’re not just going to say, okay, great, we’ll get pre approved. And when you see a house you want I’ll just meet you there. And we’ll just look at houses like that is gone. Right? We are we are reviewing this and even this cover letter whether or not you are having them sign the buyer representation agreement at this time. This cover letter tells them the things they need to know about working with you with it. You know, it’s not an official legal document. It’s just a buyer presentation of things that they need to know with the goal being transparency. I like

that. Shall we talk through what’s on this letter? Yeah. Okay. So I’ll go back a little bit. In my listing appointments. I do a seller folder. Yeah, one of the first documents in that folder is my commitments to listings. And that goes through what am I going to provide? I’m going to get you a lockbox, I’m going to have a professional showing service. We’re going to do a staging concert, whatever I’m providing professional photos, whatever it is, it’s a whole list of what I Katie and providing to you as a seller before you sign this document that says you’re going to be Amy Correct. Okay, this has the same thing for buyers. So what are your commitments to the buyers? That’s the first section? What am I going to do because buyers to be fair, aren’t really sure what you’re doing. And if they already are just searching on Zillow, and they think that all you do is help them find a house, they’re thinking, Well, I know how to find a house. Okay, so we need to tell them what you are actually doing. So we have a whole section of that.

Yeah. And it’s just written how we would write it, if we were just writing an email or talking to a friend. Yeah, this buyer representation agreement that I got from our board also has a section that says designated agent broker agrees to and it’s, you know, coordinate all aspects of the sale and closing, keep your personal information confidential at all times to assist and represent the best interest of the buyer arrange for necessary property inspections. So it’s covering it goes even more in depth here, on the legal things, a legal thing that you know, but this is just like, my personal commitment to you. Yeah, how you operate, right? What are you going to do? And we have made this form as such that you can edit it Yeah. To how you work, write what you want it to say? And what your commitment to your buyers, right,

let’s get I’m gonna give you one example. Okay. Okay. So from the letter, let’s go with this. I will commit to giving you my honest feedback on your search criteria, as well as the soundness of any investment. Yes. Oh, I could see now, the buyer be like, well, I need to know if this is a sale an investment? Correct. That’s what you’re doing right?

Can you sell it for me? And a few years? Like, right, I’m gonna try to help you make it all those things, right. So

that’s what that section is, is the more not just subjective, but it’s the more like, let’s really think about what am I doing because you become someone’s agent. As soon as you give them advice. Your job isn’t finding a house, it is offering advice on someone’s largest financial instrument. In most cases, this is the biggest investment that most of your buyers will ever purchase. Yeah. And you have to give them advice. That’s what they want you for. They don’t they don’t need to go there. Don’t want to go to Google.

I know I had lunch with a home inspector yesterday. And he was even saying, Gosh, I just inspected the worst house. And you know me the Home Inspector, I can’t say don’t buy this house. That’s not my job. That’s your job. That’s why they have a realtor there. Yeah, I’m here. I’m not there to say this has passed or failed. I’m just there to say it is what it is. Are you getting a good enough price for what it is? Because Are you right for the project? At the right price? Everything

is okay. Yeah. Yeah. Mostly. I mean, unless it’s dangerous, right.

And it’s like so as the realtor it is our job to look out. Yeah.

Yeah. Okay. So top section commitments to you. Next down, buyer loyalty agreement. Yeah.

This is what we have also, lovingly referred to as the buyer rules. Yeah. So if you have our email templates, you have these you have most Yeah, it’s it’s a version of the buyer rules from the email templates when you have a new buyer.

And that email template was the congrats, you’ve been pre approved. Yes. So right, do

you just start house okay, now

here are the rules. And it explains what do they do?

How do they how does the buyer needs? How

do they reach you? When do they reach you? By what means? Do they reach you? What if they found a for sale by owner? What about it? What do we do? It talks about new construction, all of

the rules. I just think it’s so good that if you use this you are having all of those conversations over coffee, y’all you’re not having to receive that phone call that’s like, Hey, I actually was out and about this weekend and walked into a builder’s office and reserved a lot. Thank you so much for your help. Like you’re not involved anymore, though.

This is what I would call offense rather than defense pro active we need to because no buyer, no matter if they’ve bought 10 houses or this is their first house, they just want to know what the process is and what you’re going to do and how what they want to follow the rules they do. They want to

know what’s expected. But the problem is, most realtors are not good at having that conversation with the buyer to where things are clear because they’re just so worried that if they give them rules, they’re going to lose them be the boss, you have to give them the rules and I think they appreciate that and

it is very professional. If I’m hiring someone to help me find my largest financial instrument I think I would want them to be professional enough to tell me what’s the process and what are the steps for me like what are the rules for me? I’m not going to be like Oh no, I’m not going to work with you because you told me I need to reach I need you to reach out to the For Sale By Owner no

they’re actually like wow I actually didn’t know that also like thank you I

don’t want to reach out to the For Sale By Owner yep, that’s what I have you I got you what I’m paying you for.

I’m hiring you to help me find a house you I am How many times

have you had to tell Have a buyer who’s like, Oh, I’m sorry, I didn’t want to bother you and ask questions about this house I wanted to see and like, that’s what you are paying me for. But it’s hard to say that when you’re trying to like weasel around the fact that they aren’t paying you I’m doing my air quotes, right? They

don’t want to bother you because it’s hard to respond with. Don’t

worry. That’s what you’re paying me for when you’ve been telling them. I’m free. Yeah.

That’s, that’s like being so sick and telling your doctor, I just really didn’t want to bother you. Because I know you’re so busy. No, yeah. Like, that’s what they’re there for. That’s

the beauty of being like, I’m providing you a service. You have to pay me. Yeah,

that’s what this buyer brokerage agreements. Gonna do?

This is what you’re gonna do? Yeah. Like you would never use our our roles. You wouldn’t hire a CPA or, or a dentist or a doctor or someone and expect them to not tell you the process. What

if you hired a new CPA? And y’all went through the whole thing? And finally, you were like, so you know, how are you paid? Oh, I’m free.

Don’t worry about that. Like what? Yeah,

I would feel very confused. Or what

if you hired like a financial advisor or someone to invest your mind? They’re like, Oh, don’t worry about it. I’ll just get a little piece of whatever. But you don’t need to know the terms. Yeah, I’d be like, just how much what? What does that mean? Does it is it affecting me? Like, what am I paying you? What am I that’s the y’all.

That is why all these lawsuits began, right? And if

y’all are all like, oh, not all of y’all some people, I’ve heard it over and over again, seller sign the listing agreement. They knew what they were paying. I’m like, agree they did. The problem is on the buyer side. They

thought we were free.

They didn’t and and quite honestly, I don’t know even as a buyer. I wasn’t. I asked my agent. What when I was a first time buyer. Well, what, how much money do I have to bring to closing? What do I have? If they had said, it’s X dollars? For my services? I would have just been like, okay, yeah, I didn’t know the difference.

How does it work?

I didn’t hire an agent, because I thought they were free. No, I hired one because I needed an agent. Correct.

And even on this actual legal form, there’s that’s what the next section is that the buyer agrees to furnish the agent relevant information regarding financial information, home type criteria, their preferred terms and condition necessary to purchase just much wordier.

There’s so much wordier we’re really making it easier,

just trying to make it approachable, and exciting. What’s

on this letter is what you would literally want to read through and say to your buyer at that coffee date. Yes, this is what’s gonna happen. All right, next section down, the all important. How do I get paid?

That is actually what the title is? How do I get paid? Like, wow, we’re just don’t be afraid to ask that question. We’re actually going to ask it for you and answer it, because we’re in a very weird

transitional time. So look, I also can love and appreciate that in most markets, the seller is still paying the buyer broker commission, right.

And I will say, me myself, even if things change as long as I am allowed to have my seller offer it. I plan to have that conversation why I think it is important for them to that’s me, Alyssa Jenkins, I would like my listings to have something for the buyer. Right?

I think it’s gonna be very interesting to see how long changes take in the industry if like, the DOJ comes down and says, Hey, you can’t you can’t do this. Right. And it’s a it’s like a light switch. Yep. Then we’re all going to have to get a buyer brokerage agreement buyers are all but your the whole point is, as a buyer’s agent, you can charge whatever your broker allows, right? Or whatever you want to charge if it’s just you. Yeah, that’s that was the whole point of the lawsuit. Why isn’t the buyer allowed to negotiate the way the seller is? Because the seller can negotiate your commission? It’s allowed? If you’re, I mean, and this is again, you got to go to your broker and your board and your local policy first, like what are the policies? And then you’ve got to thank your business what are what are you comfortable with? What like how much time are you going to put into every buyer? How much do you feel like it is appropriate for you to get paid? So I think explaining how you get paid to your buyers whether or not your market is still having the sellers pay commissions you still have to tell your buyer how it works and you know what’s nice about this section is that it basically covers your for sale by owner Yeah, so now because I don’t care where you are, I know you have for sale by owners. Yeah. Now your buyer understands how that works. Well, hey, if we find it for sale by owner, you and I have agreed to pay me X. If they’re not willing to pay any of it, then you have to pay me X. Correct. That’s how it works. Yes. Yeah. Okay.

So simple. So simple. What’s funny is that’s like, the smallest section on there. Right? So

in the one we’ve been hiding from simple, well, I don’t know how many years it’s gone like this. 50 Plus, I shouldn’t look this. No, it was not always this way. I hear and I don’t want to get this wrong. But the seller, the sellers agent used to represent both parties, or both. No, both agents worked for the seller. So the buyer came with, I’m like, I don’t really understand how that works. But anyhow, it’s been like this for a long time. Okay. Okay. Next section down. What happens when we find the one? Yeah, like, what’s gonna happen? Now? We

found a house. How does this work? Yeah, so

that part kind of talks us through? Well, what if the seller is offering? Not anything, something like what’s going to happen? And it also brings up the importance of me helping you know, your budget? Correct. So I’m not just gonna be like, write an offer, it’s fine. We’ll look and see what you’re gonna pay me later. Like we need to know,

for every house because every house will be different. Right? Right. We know your budget. Is this seller offering anything? If not, or if they are, regardless, what is your responsibility for this house based on what the seller is offering? Yeah. And we

have it all written out there. Yeah. So you don’t have to think of the word they’re there. And then the bottom section is just like your general practices. So your office hours where you want to be communicated, like whatever. And then I feel like I want to read the last sentence, though. Okay. Are you ready? Yeah. At the very bottom, after you’ve gone through this delightful presentation with your buyer, it says, if you feel as though we are a good fit, and you would like to hire me, please see the terms on the attached buyer representation form.

What you don’t say, Yeah, sign here.

Hey, do you want to work with me?

If you actually went through all of that, and then said, sign here, they’ll be like, okay, but if you’re just like, hey, I have this form. You have to sign this to sign this now because we’ve been sued. There’s been a lot of lawsuits. Please don’t say so. We have to sign like It literally makes my skin crawl. I cannot even they Oh my gosh, because I y’all

please share this episode with everyone that you know, the thought of what agents are going to say?

It’s gonna be cringe worthy. So cringy so super super cringy Yeah, I think it’s time for a light hearted story,

please. Are we gonna Yeah, I think I know. I think I know what’s coming he’s

been taking this all very seriously. Your broker should be taking this seriously all of your brokers out there shouldn’t 100% Be tell us what counties doing honey has been sending out these emails for the buyer representation agreement class lessor. And you know, it’s the the subject is always like big letters buyer representation agreement. Okay. So it’s everywhere. And then it’s like, you know, B ra B Ra is everywhere everywhere. So you know, being the mature people that we are all we could think about in the office was bras you know, bras. So some of the ladies in our office found it particularly amusing and got together to shoot to get some fancy bras. Fancy negligee and wear them over their clothes to the for the class

the class buyer representation agreement. So

it’s like you walk in and you’re like, what? I don’t I don’t advise everybody got that happening here. Why is your browser now inside of your we’re here for the bra class. You because

what is going on here?

We’re just really mature like that. We also talked about how like your bra can really show it’s like a personality test. So you know like some are dazzled some people just work sports bras, some are still in their nursing bras like what stage of life are you at? Here’s your bra. Here’s your bra. Kind of got to see them all. She has since changed it to be be a buyer brokerage agreement. She

was like a fun all fun and games y’all but this is very serious. A very serious topic. We

need to get back to business. Yeah, she’s

like, I’m trying to make sure you still have a job and you’re over here wearing your underwear on the outside.

Bless her time bless her.

Oh my gosh. Okay. Is there anything else that we logistically you want to talk about?

Um, you know, people love to get on Facebook and rant about how poorly things are being handled. Mm. In every MLS, if you go in and you look, you will see how many licensees you have in your area. And how many of them do not sell homes. It’s a lot. It is a lot. Okay. I was, you know, I’ve served on our board. And so I at those meetings, we get an influx of we have people, we have to approve that our new licensees, and then we also have a separate list of people to approve that are asking to resign from the board because they are not renewing. And during COVID It was a long list of new people. Yeah, people still getting long for out, yes, now the sides are swamped. And we are seeing more people exit and so there’s always we can do nothing about how people run their business that we disagree with. Okay, I mean, we’re here to do the podcast, I’m gonna do something. We’re doing the podcasts and you can share the podcast to do your you can do something about it that way. Yes. But we don’t need to worry about those people, you know, we are here to worry about ourselves. And if you are doing it the right way, you will only see your business thrive. So

yes, the best agents will survive and and be doing better. Like because the agents who don’t want to comply, who don’t want to make change, who don’t do things professionally, will eventually leave at

the end of 2022 when you know, whispers of recessions and crashes and this and that. And even my dad who has like been an appraiser and seeing the ups and downs. He’s always told me Alyssa, I know that you just like real estate is your thing. And you just you’ve taken off. But I’m telling you, it will have downs. Yeah. And so he’s also very conservative too. And I went to the top producers in my office that have been doing this for 40 years. And I was like what, tell me what this looks like, I want to be prepared. And they looked at me and said, You will be fine. Yeah, yes, you need to prepare. Yes, you need to save money, but you are a professional. And you are full time. And when everybody else is getting out, you’re going to be taking that excess. Because someone has to help the people. Yes, they were like you are not one to to worry. And it just made me feel so good to know. Save your money, prepare, stay on top of it. Spend more time asking yourself, How do I make this? How do I handle this situation? Instead of I hate this situation. I don’t want to be here. I don’t want to do this. Like stop the complaining and be the one that’s preparing?

Yeah. And look at it from the consumers perspective. They still need you and they want your help. I do have a logistical tip, if you will. So an agent’s systems, we do buyer folders, we do seller folders, that’s our listing presentation, we do buyer folders, it’s our buyer presentation. This is so easy. That’s the reason why I’m so good at getting my agency disclosure signed, yeah, because it’s in the folder presentation, I go through all the things that are for them. That’s resources that explains the process that has like my vendor, the whole thing, everything’s in there, all the things are in there, you just now have two more documents. To them, it’s super easy to add to it. I just put this in there. In fact, it makes it even more clear this letter makes it very clear what I’m doing, what they’re doing, how I get paid. What’s going to happen when you find your house. Wow, here’s our contract. Here you go. So if you’re having struggles thinking about I don’t know even how to do this, I’m gonna feel so uncomfortable. Maybe take one step back and start doing some type of buyer presentation. Like get get comfortable with the parts that maybe are going to be not so hard to explain. And I don’t think this is hard to explain.

I’m actually excited about it. I love that I am like even when we made this, I was like, Can we record this episode now? Right? It is really great. So it’s what I wish everybody well, here’s the thing, whether or not the buyer rep agreement is signed immediately. This neat has I wish I would have had this from your one no doubt in my business. Because it

not only does it tell your buyer how to behave, it reminds you what your commitment is reaffirming, what are you doing for these people. And I think knowing those commitments, makes it easier for you to speak to your value. Right? Because you’re not just like, oh, maybe I’m not doing anything.

Maybe I’m not valuable. But you are so

especially if you’re doing the things on this list, don’t just use this letter and not do the commitments. You need to be doing the things in that in that section. Yeah, so how do they get this? Oh, hustle humbly? podcast.com/bb A, I believe it is $47 for this letter. Remember we had the special during Black Friday. Some people got a lot of people got it. A lot of people got it during the Black Friday sale, but and they loved it. Good feedback. So

now we’ve had other people see it, not just us. Yes, but you can grab it at slash be be a not bra not be ra be ba Yeah, so hustle humbly podcast.com/bb A That’s correct. You can put your logo on it we have a place for your logo we have a place for your photos is a template friends. It’s a template, it’s Accelera template, make it nice. Okay, this is your buyer agreement template,

if your office hours are different changing, yeah, whatever your office hours are,

if you don’t we just have ours on there. It’s a template. Yeah,

it’s a really great template. It’s pretty much like your buyer. Resume, like, you know, but it’s not your resume. It’s just your I don’t know, I really like it. It’s your, your cover letter. Yeah. It’s your cover letter. Yeah. And it’s good. So good. Okay, anything else on this? I think it’s okay. Also to be ahead of the curve illness. Yeah, it’s okay. This is no one’s going to stop you from implementing this practice.

And that’s why I also want to be very clear, because one thing I am very sensitive to is like coaches who coach on things they don’t do. Yeah, right. So I am very, I want to be very upfront that our market we are not having the buyer representation agreement signed is a requirement at this time is Connie has she said with that’s coming for your office? He’s preparing? Yeah, it there has no there has been no Harley hasn’t made it a rule. She has not made it a rule. But I have been using this cover letter. Yeah. For a while now. I like those consultations. And it’s gone extremely well.

I think it helps you remember what you need to tell just like my seller commitments helped me remember what I need to tell my seller, this is what I’m doing. Yeah, it’s the same thing. Because in a listing, you have no trouble asking the seller to pay you correct. You’re like here my services? Yeah, this is what you pay.

And they say, Okay, fine. Same thing with a buyer.

So here are my services. This is what you pay. Yeah. I mean, I don’t think we need to be scared about this. No, I think that it’s a really a positive step in the direction of professionalism. Yeah.

And I think making this helped me get to that place. Because the more we worked on it, the more excited I got about it. Yeah. And

I think the nice thing about this is, if your buyer doesn’t understand and want to work with you after this, then they probably aren’t the kind of buyer you want to work with. They are probably going to waste your time because this is super straightforward. Yeah. And if they can’t see your value, after they read through this, then they maybe are not a legitimate buyer that you want to work with. Yeah, you don’t want them all. Yeah, and I think maybe next we’ll have to cover listings again. Because I think the other tip I would give is, if you’re not a listing agent, if for some reason you’re not allowed to take listings, I don’t know if that’s going to be a fit if changes happen in the industry. I think in order to stay alive and successful, you’re going to have to do both.

I think so too.

I just think that you’re going to need to get listing sellers are not going to stop using agents. Correct. The way buyer’s agents get paid might change. But sellers. I don’t see a world in which they’re like, nope,

nope, no more.

I don’t want an agent. I’m not gonna do this. They need you. They don’t want to do that job. They have a job. I don’t have anything else.

Great. Well, let’s get on to our toast.

Will you remember, if live here comes coming right after this the live toast from the convention. I can’t wait to hear it. I’m gonna listen with all of you. I know I’ve saved. Okay, so y’all get out there and get that buyer agreement cover letter or make your own. Just be prepared, be prepared. And here’s our toast. Bye. Bye.

Hi is Christina Kusik in Baton Rouge, Louisiana. I am the incoming president for 2024. And I would like to toast our newly appointed board of director members and the returning Board of Director members for 2024. I am looking forward to a great year and I appreciate your willingness to serve our association. I think these people are wonderful, and I am looking forward to working with them.

Thank you so much for tuning in to the hustle humbly podcast. If

you enjoy this episode, please go to rate this podcast.com/hustle humbly and leave us a review or drop a comment if you’re listening on Spotify. If you

have an episode topic or someone you’d like to toast on the show, please email us at team at hustle humbly podcast.com Find

us on social media at hustle humbly podcast. Don’t forget to find all of the free resources at hustle humbly podcast.com/resources See you next week. This is the goodbye

Two Realtors fostering community over competition through light-hearted conversations.

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