Establishing Your "Why You"
Define
Exercise
Objective: Define your unique value proposition.
Exercise: Write down five reasons why a buyer should choose you. Keep
- Keep it concise and in bullet points.
Collaboration and Sharing
Objective: Recognize the commonality in value propositions.
Activity: Share your "why" statements.
Discussion:
• - Realize that many agents have similar value propositions.
• - Emphasize the importance of standing out to potential buyers.
Questions:
• - What makes you unique?
• - What visuals can you put together?
• - How many times have you practiced your Buyers Presentation?
• - How to position your experience?
• - How to leverage your reviews?
Partnering with Lenders
Objective: Understand how lender partnerships can enhance your proposition.
Discussion:
• How are your lender partners helping you prepare to convert more signed buyer broker agreements?
Insight: Evaluate the support and strategies provided by your lenders to see if they align with your goals.
Key Point: As soon as the Buyer Brokerage Agreement is signed, I need to know so I can figure out your commission and how to pre-approve the client.
Preparing for Buyer Questions
Objective: Be ready to answer critical questions from buyers.
The Four Questions:
1. Commission Concerns: What happens if the property offers a low or no commission?
2. Price Adjustments: What happens if we increase the price to get you paid, but the value doesn't come in?
3. Interest Rates: What happens if rates stay high?
4. Competitive Offers: What is your plan to win against other offers?
Preparation: Develop clear, confident responses to these questions.
Buyer Agent Compensation
Objective: Understand and present the different ways to receive compensation.
Overview: Discuss the five ways to pay your buyer agent compensation.
Seller Compensates Both Agents Equally (Same as Prior to NAR Settlement)
1. Key Point: This compensation structure must be disclosed to both parties.
Buyer Reduces Down Payment to Pay Buyer’s Agent Commission (Finance in Mortgage Balance)
2. Key Point: The buyer offers a fair purchase price but reduces their down payment.
Buyer Increases Purchase Price to Cover Buyer’s Agent Commission (Built into Purchase Price)
3. Key Point: The buyer increases the offer price and requests that the seller pay this increased amount.
Buyer Pays Buyer’s Compensation in Cash
4. Key Point: The buyer negotiates the best purchase price and pays their agent’s commission in additional funds.
Seller Compensates Listing Agent and Partial Buyer Agent (Blended Option)
5. Key Point: The seller pays listing agent full compensation and only a portion of the buyer agent’s agreed upon compensation.
Buyer’s Responsibility
Responsibility: The buyer signs a buyer brokers agreement agreeing to a total commission for their agent.
Method Used: Use the higher purchase price in this example.
Clarity: Ensure all parties know and agree to the compensation structure.
Guidelines:
- Clearly outline the agreed compensation method in the Buyer Broker Agreement and other transaction documents.
- Adhere to the new NAR rules and local real estate regulations.
- Ensure you can clearly explain these options to your clients.
Thank you
