#working with buyers

[thelonesgroup]

Mastering the Buyer Brokerage Compensation Conversation

Mastering the Buyer Brokerage Compensation Conversation with Both Sellers and Buyers

Since August 17th, new rules have been in effect regarding Buyer Brokerage Compensation, I have been keeping up on new issues that are cropping up across the country:

Listing agents are trying to determine creative ways to share the compensation their seller is offering that does not require them to be on the phone, explaining it again and again for buyer agents wanting to show the property.

Real estate companies are pursuing potential buyers, enticing them to get out of their signed buyer brokerage agreements (yes, it is illegal, but it's happening).

Buyers aren't sure what they signed and therefore are signing multiple agreements.

Offers are being submitted that don't represent buyer or seller intentions when it comes to paying compensation (due to confusion around the issue).

Some of these issues are regional (different MLSs are handling their requirements for disclosure differently) while others are issues seen nationally (confusion around forms, companies and agents taking advantage of this confusion). The overarching issue when it comes to working with clients is this: Communication around the process and the topic. I am finding that agents are either overcommunicating with their buyers and sellers about this issue and scaring them into not taking action or they are under-communicating and causing confusion during the offer and negotiations - not when you want to spring a surprise on them that they need to show up at the closing table with more money.

Every agent in every market should pay attention to what I am about to tell you:

Explaining the current situation isn't cutting it. You need to have visuals that explain the concept and articulate the value of working with you.

You, as agents, are in the fight for your careers right now. Large companies are putting millions of dollars into taking away half of the market (buyers). They have tools that are capturing buyer signatures at open houses, their AI is targeting interested buyers prior to making an offer and offering significant compensation discounts, and unless you can show compelling reasons for working with you, they are going to capitalize on this market.

The other threat you have is the buyers themselves. They don't know what they are signing and therefore, they are signing multiple agreements. Agents who are in business to capture signatures and not cultivate relationships are not working in the best interests of buyers, but buyers who want to just have a door opened don't know any better.

Furthermore, I am seeing sellers across the country offering low or no compensation to the buyer broker simply because they heard in the news they didn't have to anymore. Although that is true, listing agents who aren't providing compelling information about the barriers that can cause and the potential lower net proceeds that may be obtained as a result, are not doing their sellers any favors.

I have had the benefit of listening to agents in my ENCORE group talk about the challenges they have had talking with both buyers and sellers over the last several months since our MLS rolled out new forms and process last January. The Lones Group has put together a whole new suite of tools to help agents have these conversations and to provide a framework that is consistent with their business model. If you are having a difficult time, have been burned by a buyer or regret not having a tough conversation with a seller, then this suite of tools may be for you:

CONVERSATIONS WITH SELLERS

Conversations with sellers can take a variety of formats, from listing presentations to selling strategy meetings. Pay attention to these opportunities and consider including these visuals as part of your fee conversation.

Listing Presentation - 4 Strategies Format

First, make sure your listing presentation no longer refers to sharing compensation between the listing agent and buying agent. These two percentages or dollar amounts do not belong under the same umbrella. Instead, I encourage agents to really look at their listing process and services, and group these under three categories:

Home Preparation Strategy

Pricing Strategy

Marketing Strategy

These three strategies are what comprises YOUR fee for listing the property.

Then, add a fourth strategy, the Buyer Attraction Strategy. In here is where you can talk about concessions offered in terms of credit for condition (such as $10K towards roof replacement), mortgage rate buy-down, seller financing, assumable mortgages, and yes, buyer brokerage compensation.

We have been doing a lot of listing presentation package renovations over the last few months to reorganize existing content into these categories. The presentation afterwards is smooth and easy-to-follow. You may not need a whole new listing presentation, it may just need to be reorganized.

Home Selling Strategies - 6 Options to Consider

There is another prop that you might consider, especially when talking with a seller about barriers that can cause a home not to sell. Sellers have choices - choices that make a home harder to sell will ultimately have an effect on the sales price. For example, if a home has very old carpet that is causing the house to smell, that can have an effect on the sales price. How a home is priced, how it is photographed and marketed (which is dependent on the agent they hire), what they are offering to the buyer, what limited they put on showings, and how they want to handle offers will also affect it. Having a prop like this helps facilitate this somewhat-difficult conversation.

Listing Fee Sheet

Many agents are already uncomfortable when talking about their fees. Having your fee, along with a summary of what the seller will receive (reference your listing presentation for the full outline), makes it a lot easier to have the conversation because the punchline is already right there, in writing, so you don't even have to say it!

Also, having a visual makes it seem like it is part of your process, and not just a number you have pulled out of thin air.

CONVERSATIONS WITH BUYERS

Like sellers, your buyers also need to be aware of their options and responsibilities when it comes to compensating you for your valuable services. Consider careully these opportunities and props for explaining the buyer process, articulating your value, and discussing commission.

Buyer Presentation

Do you sit down with a buyer before going out to view properties and explain the buyer process? Do you provide them with a packet or book of information they need to be prepared to buy? Does this outline your processes…or that of your brokerage or company? Too often, agents are relying on others to do their educating and you are appearing less valuable as a result!

Having a completely custom buyer presentation for your business and operations is one of the best ways to begin establishing your value at the very first meeting - remember, that is when you should be having them sign a buyer services agreement!

Transaction Expenses for Buyers

Although you might have a page for closing costs IN your buyer presentation, having this page as a stand-alone will help with your brokerage fees conversation. This outlines the typical closing costs buyers may need to budget for INCLUDING broker compensation.

Buyer Pledge & Buyer Fee Sheet

These two sheets go hand-in-hand OR you can simply refer to your buyer presentation if you don't want to have a separate pledge of service sheet. Similar to the listing fee sheet, having a prop that outlines the fee for your services and what buyers get for that will help buyers understand that you have a system and process for working with buyers. You are explaining your business model and are less-likely to agree to a lower number because it is right there on the table. The pledge is merely there to back you up and remind the buyer what they are getting.

Buyer Brokerage Compensation - The Gap

What if you and the buyer agree to a fee, but the seller is offering less than that, or even no buyer brokerage compensation? Agents are afraid to just say it, are dancing around the issue, and therefore are overexplaining it. What you need is a prop!

This prop we have created uses marshmallows instead of a percentage (this can be customized for your fee) but you get the idea. This allows a buyer to quickly understand that there may be a difference between what the buyer and seller want, that there is a negotiation moment, and the buyer still may need to bring money to the table to close. This is the fact of the matter!

Remember…

Buyers are hiring you for your service…service that goes well beyond showing homes and writing up some paperwork. They are hiring you for your expertise, your experience, the problems you have the ability to solve, the professional relationships you have cultivated, your managing broker, your continuing education, how you give back to the community, and your insight.

If you don't have the tools to clearly articulate your value to buyers and that worth to them, then buyers are going to compare your generic services with any other agent and choose the one that costs the least.

YOUR NEXT STEP

I didn't write this Zebra Report to freak you out, but the industry is changing under our noses. You don't have a moment to lose. You need to get your tools in order beginning TODAY. We have made it easy to get the ball rolling:

Listing Presentation and Buyer Presentation Assessment: Email us your listing and buyer presentation to support@thelonesgroup.com to get a quote for bringing it up to today's standard.

Additional Buyer and Seller Props: Want the Home Selling Strategies, Listing and Buyer Fees sheets, Buyer Transaction Expenses, Buyer Pledge, and Buyer Services Agreement - Marshmallows props? We can build those for you! We can build them in your brand in the format your other materials are in or in Canva for $995 (ENCORE members get a 30% discount). Just email support@thelonesgroup.com to discuss options.

Website: Of course, having a robust website that outlines your processes and services is also an important part of your suite of tools.

Denise Live September 17th - October 8th: Over the next four weeks, I am going to be addressing how to use these tools on my weekly Denise Live webinar, Tuesdays at 9:00 am Pacific:

September 17th Addressing Your Fees with Buyers - There's a Prop for That!

September 24th Addressing the “What Ifs” with Buyer Brokerage Fees - There's a Prop for That!

October 1st Addressing Fees in Your Listing Presentation

October 8th Addressing Buyer Barriers with Sellers - There's a Prop for That!

Join Club Zebra now for $9.95 and benefit from all four of these important conversations.

From the initial interaction to giving over the keys, you need to appear polished and professional, with processes and systems that point to your experience and expertise. There is too much at stake to assume that buyers and sellers understand what is going on and what is in their best interests. They are looking to you for guidance. Make sure you have the visual tools to provide it.

Join Club Zebra

By Denise Lones CSP, CMP, M.I.R.M. The founding partner of The Lones Group, Denise Lones has over three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development and more, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

[burningtheroots]

I‘d suggest to read the entire thread, especially if you still don’t understand that prostitution is slavery, exploitation, a hate crime against women & a human rights violation in some of the worst ways.

[sassafrassrex]

oh my God i just tried out the tumblr mobile website on my phone's internet browser and holyshityouguys were you hiding this from me??

i just deleted the app fr

[movie-robotnik-positivity]

The description of the Sonic 3 teaser mentions Robotnik being accompanied by a gang of armored henchmen with laser guns.

And in "Knuckles" we see an entire underground operation using Robotnik's techology and alien DNA to make weapons and armor. Could this be how the series ties into Sonic 3?

[kerizaret]

That Saki side story is SOOOO swet tho bc :((( tenmaaaaas WAAAH....

Their parents apparently couldn't come to Leo/need's debut show because of work, which made me sad, but tenmama was super apologetic about it too.. but Saki wasn't bothered by it at all and just took it as motivation to work hard for all their future shows and said they'll have a lot of chances to come again because l/n will be doing lots of shows from now on. And tenmama promises to be there for her with their dad too to see it ;-;;

Then tsukasa starts crying bc of how sweet saki is, as usual

And then they message the dad who's still at work and send a picture of them all with the starry sky, to which he replies with his own where he does a silly pose too 😭😭 and then they all go to make their famous tenma curry together bc they wanna help their mom cook ;-;;

JUST AUGH THEYRE SO SWEET :(( they appreciate their parents sm even if they can't always be there for them and help them out whenever they can I love tenmas :*(( and they're all absolutely silly too

[pancakeke]

ngl its been a bad week already and last night i decided today was the day i start looking for a new job. but that was 50% because i felt hopeless about dev's communication regarding database updates considering how they directly stated that they have no intention to ever keep me up to date with changes. like not even quick "heads ups". but maybe this will make this fucking job tolerable again.

[raceweek]

no but please tell us more about the graves, or just graves in general in property law, it sounds fascinating

the truth of the matter is that in the uk there’s absolutely fuck all legislation about it!! there’s like five pieces of really old statute collectively called the burial acts which almost solely deals with the plague so you basically have to go….sooooooo its not a plague pit so far as we are aware……….let me know if you have any questions :) x

[fjordfolk]

We've been a tad worried that Melis has gotten into some improper resource guarding, after growling at both Luna and my mom over things in the house. Which sounds serious. But we also know that Melis came with a lot of growling and sharp reactions preinstalled (without necessarily having any intent to follow through or even being that serious about it) which is really why the breeder switched her to us in the first place.

But I'm wondering if this new bout of sharpness is less 'this is how serious I am' and more 'this is the fastest way to get what I want'. When she's with Troj and Sparty, who are a lot stricter re:boundaries and won't be pushed around, Melis goes for the opposite tactic when she wants something. Then it's endearing, soft eyes, chin licks, etc. I watched Melis and Sparty trade a soggy chew back and forth several times today and at no point did anyone threaten anything.

I've been thinking it's ironic for Melis to growl at Luna and not Sparta, considering Sparta is the only one serious enough to justify some sharp tones potentially. But maybe it's not, because it's definitely efficient. And with Sparta she might have to actually mean it. But instead she moderates herself and actually shows a really nice range of appropriate signals - when it's required of her and she knows she can't just bully her way through.

[taxonomicons]

everything I love about Aziraphale can be summed up in the fact that he draws on a cartoonish mustache to do human magic, when he can easily miracle both of those things to be real. He is a savant of showmanship and joy, thrilled by the whimsy of the mundane.

[thelonesgroup]

Buyer Brokerage Agreements

This week's Zebra Report is an important one. With all the laws changing around buyer-brokerage agreements, it is so important to know that soon, before a buyer can even go look at a house with you, that you will need to get them to sign a buyer-brokerage agreement. Even today, I recommend that when you begin providing your buyer with real estate services that you have a buyer services agreement in place.

Now, the challenge with that is that they may not know you very well. Maybe they are calling you because they saw your sign in their neighborhood and are thinking, "Hey, I'll just give this agent a call and maybe they can show me a home." That means that you need to be able to have these kinds of discussions. It also means that many buyers are going to go online, they are going to go to your website, and they are going to want to check you out.

Just this morning, as I was preparing for today's Zebra Report, I looked at twenty-six real estate agent websites. Just random ones that I found in search results for various areas. Some here in Washington, others in California, Florida, Arizona, Texas, and elsewhere. As I visited these websites, I was imagining that I was a potential buyer that was going to buy a house. So as I visited these websites, I looked for a buyer services page for more information.

And you know what? Not a single one of the agent websites I visited today - a big fat ZERO - actually explained anything about what the process really looks like when you go to buy a house.

Now here, in Washington State, it is even more important because of the law regarding buyer brokerage agreements that went into effect at the beginning of the year. Agents here need to be able to explain:

What is the law?

How does it benefit buyers?

Why should buyers want to be committed to an agent?

While you are working on how to answer these questions you need to consider the very first place that buyers are going to find you - at your website. Back in March 2021, NAR's Home Buyer and Seller Generational Trends stated that 97% of home buyers search online first. Today it's likely more and that means that your online presence matters. Your website matters. You need to update your website.

The biggest thing I'm seeing this year is that this incredible, essential piece of information is missing or just not detailed enough on too many agents' websites. Now, more than ever before, you need to get your website evaluated, address these issues, and get a website makeover!

Be objective. Look at your website. Don't do what I did and look at 26 of them, maybe look at five others. Then take the time to ask yourself, "Ok, if I was a buyer what kind of information would I need to find here." Or, "If I was going to meet with a buyer at their home, what kind of information do I need to have prepared to have a discussion about buyer-brokerage agreements." If you are going to discuss it in person, you need to be able to discuss it online, you need to be able to discuss it on social media. Maybe that means posting a short video that explains this to your potential buyers.

If you need help with websites, reach out to us, I'll include a link below. Our Director of Technology, Randy, is our resident expert on real estate websites, online marketing, and anything tech-related - and he understands how the real estate business works and is easy to talk to. He can do an in-depth analysis of your website and propose options to you to get it on track. Be at the front of that line to get the help you need.

Don't wait until a buyer calls you one day and you discover that you aren't ready to have those discussions and you're not ready for them to look at your website.

Book a Demo

By Denise Lones CSP, CMP, M.I.R.M. The founding partner of The Lones Group, Denise Lones has over three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development and more, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

[alackofghosts]

hrghh tex ture….

[burningtheroots]

Sex isn’t a service, and women & their bodies aren’t commodities. You can‘t morally/ethically purchase either.

Sex is only consensual when it‘s mutual. And it‘s NOT mutual when money is involved. After all, if it was mutual, and thus consensual, money wouldn’t be needed. If you removed the money, the woman wouldn’t agree to it (she technically doesn’t "agree" to it either way due to money being a coercive factor).

But "sex work" always involves an exchange between (usually) a man’s money and (usually) a woman’s sexual service. And that’s sexual coercion, and hence it’s rape.

Simple logic, right? But apparently a huge amount of people traded their brains to live on easy mode, free from critical thinking and morality.

[bri-does-art]

i know this probably won’t do much, let alone anything at all, but i’m sorry for the stress this site has caused you and so many other creators here. i’m not asking for you to stick around on here, but i hope you know just how meaningful you and your art have been on here. you’re amazing. /pos

Hey, this ask has done a lot more than you would think. Thank you, you are very sweet. <3

I've kind of made up my mind about what I'm gonna do for a while now, but I've simply been... too busy and overwhelmed to take the time to let you guys know. I'm not going to delete my tumblr, there's just. Too much here that I don't want to lose.

So far the game plan is: keep my tumblr. But do not upload anymore art or writing on it - not because it's gonna get scraped, because it was already getting scraped anyway, AI company deal or not. It's pretty much unavoidable at this point, unfortunately. I simply do not trust Tumblr with my data, if they're going to sell EVERYTHING, including private messages and such, so I'm not going to give it anything worthwhile to profit off of. Instead, I'm going to start uploading my art exclusively on Ao3, for now. I'll answer any asks I receive here on there too, as well. I'll figure some kind of system out. 🤔

The cool thing about uploading to Ao3 is that anyone subscribed to my profile or to the containment series I will make will get a notification anytime I upload something new. Having my art and writing in one place is likely going to be more convenient for you guys too, since you won't have to move across platforms to get the full experience. 😄It'll be different... but a platform getting too greedy for its own good won't stop me from finding ways to share my stories with y'all. I'll just find another solution.

(I've also been entertaining the idea of joining or making my own Discord server but. That one is a little more delicate. The idea of joining a server that has hundreds of members like a lot of this fandom's servers have, just. Makes me break into hives, lmao. (I am in the Ghost in the Machine fic server. I muted it an hour into joining, it was way too intense for me. |'D) That is way too many people, I simply cannot handle it. I'd be way more comfortable in a smaller group with a less rapid-fire rate of posting and conversation. I am also. Very picky about which servers I join, which makes asking for recommendations doubly awkward when I shoot them all down, haha... And making my own... Err, I can hardly keep up with a server I helped create for another fandom and mod for, I don't think I could handle two of them - I would need other people to handle the moderation for me, and I wouldn't trust just anyone to be a mod. I'd need to know them well enough to know I could trust them, and I... do not really know anyone in this fandom well enough to do that, sadly. I take server moderation very seriously, as someone who has had experience modding for forums back before social media was a thing. I do not know if that would make for a fun experience for everyone, and anyone who hasn't known that kind of supervised experience. It is comforting to me. It may be intimidating for others. So that's still a very hand-wavy, 'eehhhh' kind of thing still.)

All of this to say, that this isn't the last you'll see from me, far from it. I'll restrict my creative output to Ao3 for the foreseeable future, and I'll let you guys on here know when I make a new upload, so those of you who do not have an Ao3 account know when something new has happened.

So there you have it. 😊

[forcebookish]

ok book wants to play a thief but i don't think force should be a cop, he should be the mark and he catches book and traps him there to find out who his buyer is

[seomarine]

" the developers are pushing for it to finished by the new year but judging from the current state, it'll most likely require more time. "

[braisedhoney]

all commissions officially complete and sent!! hell yeah!!