Let’s address a critical topic: how to make sure you get paid as a buyer’s agent. With recent changes in real estate, including lawsuits between the Department of Justice and the National Association of Realtors, many realtors are confused or concerned about their compensation. While the process might change, the necessity for buyer’s agents to demonstrate their value remains constant.
Buyers today are highly focused on affordability. They need to understand what they’re paying for, how they’ll pay for it, and what their payments will be. This involves decisions about loans, pre-approval, property location, price, and other factors like insurance. As a real estate professional, you’re the one guiding them through these decisions, making your role indispensable.
“Buyers today are highly focused on affordability.”
Changes in compensation will likely involve updated documents provided by state real estate commissions and realtor associations. You may no longer see cooperative compensation offers within listings, meaning your payment might be negotiated directly with your client and potentially included in their mortgage. It’s crucial to have buyers sign a buyer representation agreement before showing homes. This agreement could cover a single day, one property, a week, a month, or longer, ensuring you’re compensated when the deal closes.
To secure your compensation, clearly articulate your value proposition to your clients. Make sure they understand the importance of your role in navigating their property search and purchasing process. This clarity is essential for getting a buyer agency agreement signed upfront. While open houses won’t be affected by these changes and still offer a great opportunity to connect with potential buyers, the formal agreements will protect your interests and ensure you get paid for your work.
Remember, the key is to provide undeniable value and communicate that effectively to your clients. If you need help with your business, do not hesitate to give us a call!
