When the Going Gets Tough

Seismic shifts shake the earth. When the dust settles, those still standing command more appreciation for their resilience.  There will be those that are damaged by the shift; in that group there will be those that never recover.  In a shift similar to the NAR settlement, which real estate agent or brokerage are you?

Initial responses to the NAR talking points related to the settlement have had the effect that now EVERYONE is talking about buyer agency, agents, brokers and consumers alike.  Rather than a negative thing, this has helped the real estate industry as a whole discuss buyer agency more effectively.  Frankly, it is much easier to address buyer agency when everyone is aware of what buyer agency is in the first place.

When the laws changed to ensure a better home buying experience for buyers (1999-ish), we evolved into an industry with agency options for buyers and sellers. Although the way that buyers agents were compensated did not change significantly, the benefit to buyers was that the home buying process did change for them and the representation gave them confidence in the transaction. Buyer Representation agreements were usually presented but not in a uniform fashion. This is mainly because it is difficult for a buyer to see an agent's value until they are further along in the buying timeline.

Consumers may still have a difficult time signing the buyer representation (agency) agreement prior to seeing homes. 

One of the biggest challenges to getting a buyer representation agreement signed is the relatively intrinsic value that a buyer’s agent has. Unlike an exclusive listing agreement, there are rarely any tangibles (photos, staging, MLS access, advertising) and the buyer has to quickly develop a level of trust with the buyer’s agent.  This is where a formal buyer's presentation takes on tremendous significance. 

To be an effective presentation, the buyer should walk away with a sense of confidence about buying a home and using this agent to represent them. Questions they have about the process or the market should be answered to their satisfaction. Attached to this presentation should be a list of deliverables including what to expect from an exclusive agency agreement and what to expect from a non-exclusive agency agreement (if offered in your state).  Definitely add in paperwork, including the real estate contract to your materials; understanding this paperwork in advance of having to negotiate the contract will give your buyer a lot of confidence as they move forward.

Buyers will learn pretty quickly that there are several ways to go into the home buying process.  Will they buy on their own (similar to a FSBO)? They could if they have confidence in their market knowledge and understand the contract.  Will they use a minimum services provider? They could. Will they choose to work with an agent who has the market knowledge, can keep emotions at bay, understands the intricacies of the contract and is able to negotiate well to help them reach their goals? More often than not, they will! 

There is no time like the present to update your buyer presentation, the base of your buyer activities. Shore up your base and no matter what seismic shifts happen, you will be standing tall.