BA Compensation Training

0:05Good day. Good day. Good day, guys. So,

0:09welcome to broker to broker compensation

0:12the discussion. Um, that's what we'll

0:15call this particular um training on

0:18today. Um, for those who not able to

0:20make it, um, thank you for watching the

0:23recording because if you're hearing

0:24this, that means that you're watching

0:25recording of this particular trans um,

0:28training today. Um so broker to broker

0:30compensation guys has changed your

0:32opportunity hasn't

0:34how to represent buyers confidently in

0:37the new environment.

0:40So what I want to start with is kind of

0:42a highlevel um discussion of why we're

0:46even having this training on today. Um

0:48the purpose of this session is because

0:50the real estate landscape it continues

0:52to change. It continues to evolve and we

0:56have had um a number of changes here in

0:59the state regarding our forms and we

1:02have another significant form revision

1:05that is coming. Um the state promulates

1:09or puts provides forms that those within

1:12the industry as realtor members can use

1:14within their practice [clears throat] in

1:16the state of South Carolina. there's no

1:18obligation to use their forms and um

1:21however if you utilize their forms and

1:23have a legal issue related to language

1:26that is in the forms then um you have an

1:29ally and someone to quote unquote back

1:31you up in the defense of that particular

1:35language. So for a long time there have

1:39been a lot of assumptions regarding

1:41buyer compensations that we in the

1:44profession have relied on for a number

1:46of years. Those particular assumptions

1:50don't apply any longer in our current

1:52market.

1:54But here's the reality. The reality is

1:56this is not a setback. This is really an

1:58opportunity for those who are strategic

2:02to shift their mindset to shift how they

2:04do business and to prop themselves up as

2:09prepared professionals versus those who

2:12are not. So understanding that

2:14wellprepared agents who understand how

2:16these changes um you know are how these

2:20changes are being implemented and adapt

2:22their approach will outperform those who

2:25do not within this market. So the

2:27purpose of this training is to equip you

2:29with the knowledge um with um you know

2:32potential um help you to um create

2:34prompts and create scripts um and and

2:37help you build your confidence so you'll

2:38continue to thrive. Just remember that

2:40change doesn't remove opportunity, it

2:43just removes the shortcuts.

2:46So the old model what agents were used

2:48to buy compensation traditionally worked

2:51where a listing agent would list a

2:53property. would list it at whatever the

2:57fee was that they listed at as a total

2:59compensation and oftentimes would share

3:01a portion of that fee with a buyer's

3:04agent. That's what has been familiar

3:07within our industry for a very long time

3:10since I began before I began. It was the

3:13most familiar structure um back when I

3:17first joined as well as up until fairly

3:19recently. uh MLS MLS's displayed the

3:23offer of compensation. So, it made it

3:25easier for a buyer's agent to know going

3:28in, okay, well, look, this was an offer

3:30of compensation from the listing agent,

3:33you know, and from their commission from

3:35the seller, and I know what they're

3:38paying me going in. So, that provided a

3:42level of security. Um, some say an

3:45artificial crutch, if you will. buyers

3:47really had to question how their agents

3:49were being paid because agents quickly

3:50and swiftly said, "Well, I'm the

3:53seller's agent pays me or I'm being paid

3:55in a transaction." And for a long time,

3:58it was said by many, "Well, you don't

4:01you don't pay me. The buyer the buyer

4:03doesn't pay me. I'm paid in the

4:04transaction." So, again, it was assumed

4:07that it was handled automatically by the

4:09seller. So, compensation discussions

4:13really were fairly moot. They usually

4:15didn't happen or they if they did

4:18happen, it was indirect. Agents were

4:20often buyer agents were often afraid to

4:23have a full-blown direct conversation

4:25with uh with the with the buyer. Um as

4:29far as their

4:31necessity or or or making sure they had

4:34understanding that they're responsible

4:35for paying their fee. Again, the

4:37prevailing assumption was that sellers

4:40effectively dictated the buyer agent

4:43compensation through the listing

4:44agreement and everyone for the most part

4:47operated within that framework without

4:49conversation or any other negotiation.

4:52So now we no longer have that structure

4:56that we once saw as being our guarantee

4:59no longer in the MLS. So because

5:02compensation is no longer in the MLS,

5:04you don't know what the other

5:06compensation or if there's compensation

5:08even being offered, it is necess is it

5:12necessitates the conversation with the

5:14buyer to say, "Hey guys or Mr. Message's

5:18buyer, you're responsible for paying me

5:20and then this is what my fee is and this

5:22is how I earn my fee."

5:25So at a high level, what is going on

5:28currently is that compensation is being

5:30removed from our state forms. So with

5:32the new release of forms that will take

5:34place the first part of March, brokerto

5:37broker compensation is long no longer

5:39embedded in the language in our state

5:42approved um forms. Obviously

5:46compensation is still not in the MLS as

5:48well. So there's no more assumptions or

5:50presumptions that compensation is even

5:53being offered by the other side of the

5:55table. Um but more importantly at this

5:58junction there is no mechanism or model

6:00in our forms for another agent to pay

6:03you. You will only be paid through

6:05negotiation with the seller either

6:08through the transaction and closing cost

6:11for the buyer or with a direct offer of

6:14com a request of um compensation from

6:17the seller with a seller to buyer broker

6:19form. So buyer agent compensation again

6:22must now be actively discussed. There's

6:25no reason and in this particular

6:28[clears throat] market and climate,

6:29there is no reason why agent should be

6:32shown away from having a conversation

6:34about their compensation.

6:36If it's properly disclosed in writing,

6:38discussed, and explicitly agreed to

6:42before you get into providing service to

6:45the consumer, you'll be better off. So,

6:48how we approach buyer agent compensation

6:52is very important and should be part of

6:55your early, if not your very first

6:56compensation, excuse me, conversation

6:58with the consumer. So, don't assume that

7:01compensations will just quote will just

7:04work themselves out. It no longer is

7:06automatic, but your representation still

7:08is.

7:11So, what did not change? Amid all this

7:13change, it's crucial to understand what

7:16remains constant. All right. So, what

7:18has not changed? Buyers still need

7:20professional representation. A real

7:23estate transaction, we all know, is very

7:25complex. Um, there's moving parts. As I

7:28um had a recent conversation on

7:30yesterday with a consumer, they're very

7:33complex transactions.

7:36The consumer, the buyer needs someone to

7:38protect their interests, to help them

7:40get to an informed decision. your

7:43fiduciary responsibilities still haven't

7:46changed either where you still have to

7:48provide loyalty, disclosure,

7:50confidentiality, reasonable care,

7:52honesty, um all those things that you

7:55have to provide to the consumer.

7:58Our agency agreements remain valid and

8:01legally binding. So that is the

8:04mechanism that you all have that we all

8:06have to help us to protect not only

8:08ourselves but also our clients and

8:11negotiation is a fundamental part of

8:13every real estate transaction. You have

8:15two in most times opposing parties

8:18between buyer and seller. Seller wants

8:20the most money, buyer wants to pay the

8:22least. Typically if you get them to real

8:25terms and you have an opportunity for

8:26them to do a deal to work together, you

8:29have a deal put together. Essentially,

8:31you're practicing the art of the deal.

8:34Seldom is that much different than when

8:38having the conversation with the buyer

8:39as a buyer's agent. You still want to be

8:42paid, so you you're looking to get

8:44compensated. The consumer ideally

8:47doesn't want to have to pay you, but you

8:48have to get them to an understanding so

8:50you can get to an agreement. So

8:52understanding again that the buyer needs

8:54representation, your fidiciary

8:55responsibilities are still there, the

8:58agreements, the contracts, everything is

8:59still valid and you still have to put in

9:02some effort to negotiate.

9:06So why is this change actually healthy?

9:10All right,

9:12the market tilts. You know, there

9:14there's there's a saying in in regards

9:16to the odds shift to those who are

9:18prepared. um not exactly the word or

9:21words but is similar in that those who

9:24are prepared find themselves more lucky

9:26than oftentimes those who are not.

9:30Transparency builds trust. Having clear

9:33concise communication conversation with

9:36the buyer client is going to help you to

9:38have a better relationship with them.

9:40There's no guessing there's no there's

9:42no him and there's no harm. It is merely

9:45this is what my fee is. This is how how

9:47this works. if I don't get it here, this

9:50is what it's going to look like. It will

9:52cause the most serious buyers to quote

9:54unquote rise, if you will, to the top.

9:57Those people who are just tire kickers,

9:58who are not serious about actually

10:00making a purchase, are going to want to

10:02shy away from having a situation where

10:05they may be responsible for paying you.

10:08If they legitimately need your help,

10:09legitimately are looking to purchase a

10:11home, they're going to be shaken out of

10:14that entire crowd of people who aren't

10:16interested, who aren't willing to

10:18commit, and that will help you make your

10:20business more precise.

10:22Clear agreements reduce disputes. When

10:26you're documenting the compensation

10:27upfront, which is in your buyer agency,

10:30when you're having a conversation about

10:31who pays it, who's responsible, I'm

10:34going to work to get this done. that

10:36eliminates the misunderstandings and

10:39other potentially conflicts that may

10:42arise during the course of the

10:44transactions. And just understand that

10:47strong agents will differentiate

10:49themselves from those who are not. Those

10:51who are weak in this particular arena of

10:53having a conversation with the buyer

10:55about their compensation. Not from a

10:57point of hostility, not from a point of

11:00you know extreme firmness, but from a

11:04conversation of this is what my fee for

11:06service is. So this change rewards those

11:10who put forth their skill and

11:12professionalism and there is no more

11:14outdated assumptions.

11:17So the new bio representation reality

11:20is this is early conversations about

11:22compensation.

11:24Are you paid? You discuss that during

11:26your initial intake with the buyer,

11:30during your buyer agency presentation.

11:32That's where these things points are

11:33made.

11:35You should have a structured meeting

11:39with the consumer. The fly by night, the

11:42this, the that, just showing up, showing

11:44property, and not having to have this

11:46conversation up front. Those tactics are

11:49going to provide you more issues than

11:54having giving you more assistance in

11:57putting yourself forward in the most

11:59professional manner alike. Making sure

12:01you explain to buyers, hey, this is what

12:05I do. This is my value. This is what I

12:07bring to the transaction. However, this

12:10is what my fee is for the value that I

12:11bring to the transaction. Set your

12:14expectations early. If you expect that,

12:17hey, it's going to be difficult for us

12:20to negotiate my compensation in on a

12:23transaction or in any transaction, then

12:25have that conversation upfront and work

12:28to find alternatives in order for you to

12:31be compensated. Meaning, can we increase

12:35the purchase price of on an on an offer

12:38in order to get closing costs to help

12:40offset or pay the fee? If the seller

12:44won't pay the fee directly

12:46through seller to buyer broker

12:48compensation, then what are other

12:51alternatives? Can we find down payment

12:54assistance? Can we find some other

12:56assistance elsewhere in order to roll

12:58that in to the purchase? Does the lender

13:02allow the buyer to roll that particular

13:06closing cost into their loan? Agents

13:10must shift their daily practice. No

13:14longer waiting till you're in the car,

13:17waiting till you're on the way to a

13:18showing to have this conversation about

13:22representation. It's extremely important

13:24that we do this upfront, remembering

13:27always that your buyer consultation

13:31is the foundation on which you build

13:33your business.

13:35Your entire working relationship with

13:36the consumer is oftentimes predicated by

13:39that initial con consultation. Not

13:41necessarily conversation, but

13:45that initial consultation

13:48about how you work, what do you do, what

13:51your fees are, your processes, and all

13:53those other things as well.

13:58understand that in my opinion buyer

14:02consultation is is a mandatory. This

14:04should not be an option anymore. Making

14:07sure you're explaining the agency which

14:09is identifying and clarifying your role

14:12as a buyer's agent. What's your

14:14fiduciary responsibilities?

14:16Going through your scope of services,

14:18what does working with you? What what

14:21advantage is that? What is your value

14:22proposition? essentially is what that is

14:25and what you'll provide.

14:28Obviously, compensation is a part of

14:30that. If I'm telling you what my role

14:32is, giving you an explanation, defining

14:35my scope of services, obviously with

14:37service comes compensation. So, explain

14:40how agents are typically compensated,

14:42what options are available. You may have

14:44a consumer, a buyer that may say, "Hey,

14:47okay, and I'll pay you." And also

14:50discuss the possible outcomes. What can

14:52happen? What happens if you can get it

14:55paid by the seller? What if the buyer

14:57pays it? If you can negotiate or any

15:00other hybrid or combination of those

15:02particular scenarios.

15:04Think of your buyer consultation guys as

15:06the very first appointment.

15:09You know, it is, you know, for me it's

15:11the the it's the scene I set where I

15:13usually kind of decide, you know, help

15:15them decide what it is they want to do

15:17or give them things to think about. And

15:19sometimes I bring a buyer in twice.

15:20Sometimes I consult with them twice

15:22before. Think about it like a doctor

15:25consult consultation. If you have a

15:27surgery coming up, typically you're

15:29going to meet with the doctor prior to

15:31the surgery for a consultation. They're

15:33going to ask you questions. They're

15:34going to make sure they address your

15:36concerns. All those things. If it is a

15:38significant surgery, you may have

15:41multiple consultations to make sure that

15:43you have full understanding. you're a

15:46professional just like your doctor, just

15:47like a lawyer or what have you. I always

15:49tell people you typically don't go to

15:51court, get a lawyer and go in go into

15:53court and and for a trial. Normally

15:55there something that happens prior to to

15:58make sure they understand the aspects of

16:00your case. So similar with your buyer to

16:03make sure you understand what they're

16:04doing. Remember, if you skip this step,

16:07if you skip doing a buyer present, the

16:09buyer consultation, if you don't invest

16:11the time, you're taking an unnec

16:14unnecessary risk with your time um and

16:17also your commission.

16:20So, how buyer compensation can still be

16:23handled? Again, this new landscape still

16:25gives us flexibility. It's not

16:27necessarily a restriction. Now, I will

16:30be clear and concise at this moment to

16:33say this, which is under state law,

16:36broker-to-broker compensation currently

16:39is still a legal practice. However, it

16:42is an unnecessary risk for

16:46selling agents, selling brokers, listing

16:48brokers to compensate buyer brokers. A

16:51lot of the angst, a lot of the things

16:54that came from the settlement and even

16:58arguments that's currently being being

17:00made in current cases that are still

17:02pending regarding agent compensation,

17:04agent conventions, a underlying factor

17:07in all of those is broker to broker

17:09compensation that home prices consumers

17:13are overpaying because they're paying

17:14the listing agent who's paying the buyer

17:16agent. That is one of the underlying

17:18premises and the Department of Justice

17:21is very very very very

17:23um adamant in their positioning that

17:27they no longer want broker to broker

17:29compensation to exist. They think it is

17:32an injustice possible antirust violation

17:36for compensation to be shared between

17:38agents um in a transaction.

17:42Hence why we are where we are. So how

17:45you approach compensation in your

17:48business individually is up to you. Each

17:52transaction may be different depending

17:53upon the property, upon the seller's

17:55position. A seller with equity may be

17:57willing to negotiate closing costs or a

18:01buyer buyer broker compensation in order

18:05to sell the property. If they don't have

18:08the room, then they may not be able to

18:10do that or may not be willing to come up

18:13with the funds to do that. Also, what

18:15does your buyer prefer? Does your buyer

18:16prefer you to get the other person to

18:19pay you where you know it may be quote

18:21unquote somewhere in the price of the

18:23home? Maybe they try to negotiate a

18:25lower price for the home and in turn pay

18:27you so they don't end up paying interest

18:29on that money they would have negotiated

18:31extra to have you compensated. Those are

18:34things that you need to factor in. Also,

18:36what are the market conditions?

18:38Does the property does the current

18:41market allow you to ask for or negotiate

18:45a higher price for in order to get

18:47concessions or is it a market where you

18:50normally see concessions? Your job is to

18:52know these possibilities and recommend

18:54the best strategy for each unique

18:57situation. It's not a one-sizefits-all.

18:59There is not and won't be a single

19:02correct way or best method, if you will,

19:06in order to make sure that you get to

19:09the the goal of getting the buyer

19:11served, but also being compensated.

19:14Understand that you have to know and

19:16should know the market, the climate, and

19:19otherwise how you can best serve the

19:22needs of the buyer. Strategy and

19:24communication are key.

19:27So, what shouldn't you do? This is that

19:29risk management piece, right?

19:32So, don't promise without an agreement,

19:35you know? Don't don't don't tell a tell

19:37a buyer, hey, the seller will pay me.

19:39Nah, you ain't got to pay me. That you

19:41ain't got to worry about that. That's

19:43that's a risk to to them and also a risk

19:46to you. Making assumptions could get you

19:49in a quagmire, if you will. Don't rely

19:53on MLS assumptions, which is if I see a

19:56property in MLS, oh, they got to be

19:58paying. No, let's not do that. Um,

20:02don't avoid the conversation.

20:05Delaying, you know, falling back. I

20:08don't want to have this conversation.

20:09All those other things that you some

20:12that we sometimes avoid because we have

20:13a degree of angst. Make sure that you're

20:16not avoiding putting off the

20:18conversation because you could find

20:20yourself further in than you desire to

20:23be without the way to get out. Don't

20:27just wing it. Don't show properties. And

20:28we should not we the mandate as of a

20:33year and change ago we don't show

20:34property without assigned buyer agency

20:37or at least a relationship disclosure

20:42because compensation in South Carolina

20:44is not required to show property.

20:46However, if you expect to be

20:47compensated, you have to have a

20:49compensation agreement and you have to

20:51have a client to represent in that

20:53particular um scenario. So, make sure

20:55that you are discussing this. Don't just

20:58be out here winging it, per se. And make

21:01sure you document it. You know, not

21:04having a buyer agency and going to show

21:06property and writing a buyer agency when

21:08you're going to write a write a contract

21:10is not is unacceptable. Please, please

21:13don't do that.

21:16So, here's a couple of prompt starters,

21:19if you will, for scripts. you know, you

21:21you want to kind of, you know, uh figure

21:26out how to ease in and you got to get

21:28comfortable with it. An idea is to have

21:33a partner name here in the office here

21:35in the office. Please don't use another

21:37agent somewhere else or do role playing

21:40with an agent outside of the company

21:42because that could be an antirust

21:44violation. Um that could be collusion

21:47quote unquote between agents, between

21:49different companies. So, conversation

21:52starters like let's talk about how

21:54representation works and what this means

21:56for you in this process. Um, another

21:58one, um, there are a few different ways

22:00my compensation can be handled. Um, in

22:03the process, we'll choose what is best

22:04for your specific situation. My job is

22:07to protect your interest and negotiate

22:09the best deal possible. Here's how I'm

22:11compensated for that work. These

22:15conversation starters

22:17can help you to get into that

22:20conversation to have it and to be better

22:22prepared. So remember that you need

22:25something that's straightforward, that's

22:27professional, that's focused on the

22:29client. Having a conversation about your

22:32compensation should not be about you. It

22:34should be about them. If you make the

22:36mistake of making it focused on you that

22:40you know, as I've heard many agents say

22:42over the years, oh, I gotta get paid. If

22:45you make it about you, then that is a

22:48turnoff for the consumer. I literally

22:50spoke to a consumer on yesterday who has

22:55had the experience of someone not

22:57wanting to meet with them because they

23:01didn't know where their credit was and

23:02all this other stuff. And that is by

23:05that's that's their business. That's how

23:07they do it. But it's a turnoff for the

23:10consumer. If you make the conversation

23:11of compensation about you, it's about

23:14them. It's about, hey, I'm going to work

23:17for you. This is what my fee is. This is

23:20how I'm paid.

23:22Not, hey, I ain't going to do nothing

23:24for you. Um because I need to get my

23:26money. And if I don't have my money, you

23:28know, th those kind of things, guys, are

23:30a huge turnoff. So, please make sure

23:33that you do not um start off a

23:36conversation like that, that you ease

23:37into it, but you're clear, that you're

23:40straightforward, guys, and that you

23:42deliver the professionalism that we all

23:45possess. Practice makes perfect. Go back

23:50and forth, even if you got to do it in

23:51front of the mirror. Um, maybe you turn

23:54on chat GBT and you go back and forth

23:57with it, but make sure that you're

23:59getting comfortable with having a

24:00conversation. Remember to stay calm, be

24:04professional, matter of fact, and treat

24:06this as routine business. Um, once you

24:09get to that point, then it will no

24:11longer feel uncomfortable, and it won't

24:14feel like you're begging or asking

24:15someone for a favor.

24:18So, here's some common

24:22questions that buyers have, right? So, I

24:24thought the seller paid you. Well, this

24:26was often the case historically, and it

24:28may still be in some transaction.

24:30However, it's no longer automatic, which

24:32is why we're discussing all

24:33possibilities upfront. So, we won't have

24:36any surprises.

24:39Buyer again, why do I have to sign this?

24:41Well, this agreement protects both of

24:42us. to clarifies exactly what services

24:45I'm offering to you that I'm providing

24:47to you and how I'm going to be

24:48compensated. So, we both have clear

24:51expectations throughout the process. And

24:54then here's a here's here's a good one.

24:56Can't we wait to figure this out? Well,

24:58I wish we could, but industry

25:00regulations now require these

25:02conversations to happen before we start

25:04working together. And doing it up front

25:06actually benefits you because everything

25:08is transparent from day one. So, this

25:13helps you to address some of the

25:16objections that you may may get, but

25:19it's also going to help you to identify

25:22in your presentation, in your buyer

25:25agency consultation, where you need to

25:27spend more time educating the consumer.

25:30If you finish a buyer agency

25:32consultation and the consumer, nearly

25:36every consumer that you have has a lot

25:37of questions, that's indicative that you

25:40have not done as well of a job as you

25:42could have in addressing all questions

25:45in your presentation.

25:47Make sure that you are are having the

25:49conversation what happens when

25:52talking through giving examples if

25:55necessary in order to not only set the

25:58person at ease but also deliver true

26:00value to the consumer at the end of your

26:03consultation. There should not be a

26:05tremendous amount of questions. One of

26:07the primary questions they should have

26:09is where do I sign? And if they're not

26:12ready to sign after you finish talking

26:14to them, then reanalyze what it is that

26:18you delivered in your presentation to

26:21identify where you may have either

26:23missed the mark, gotten yourself hung

26:26up, or otherwise been off target in

26:29delivering a professional consultation.

26:34So, let's talk about how this impacts

26:37listings, right? I mean, obviously,

26:39there's two sides of a transaction. Now

26:41again, the new forms have not been

26:43released, but they'll be coming here

26:44very soon. Understanding that this does

26:48not just impact buyer agents. It also

26:50impacts your listing presentations as

26:53well. Sellers need to understand that

26:56buyers may request that concessions be

26:59paid by the seller to cover their agents

27:02compensation as part of the negotiation

27:03process.

27:06One thing that I am very sensitive to is

27:08this. There's some that when they they

27:12don't look at the whole picture. They

27:13only look at one side or the other.

27:15Meaning, if I'm a buyer agent, I feel

27:17and think that all sellers should

27:19compensate the buyer's agent. If I'm a

27:21listing agent, I feel that all sellers

27:24should not compensate the lists

27:26compensate the buyer's agent. That

27:28compensation can vary. It can be one end

27:31of the spectrum to the other or whatever

27:34it is somewhere in the middle. Having a

27:36conversation with a seller does not

27:38obligate them to pay compensation. If

27:41they decide they want to, if they feel

27:43it's in their best interest once you've

27:45explained it, then that's what they

27:47should do.

27:49However, not having a conversation

27:51essentially is you making a decision for

27:53them. So again, it may become a

27:55negotiating point. Never assume that

27:58it's just built in because it won't be

28:00built into the listing agreement

28:01anymore. Be transparent with your

28:03seller.

28:05Let them know, hey, high probability if

28:08someone comes, this is what's going to

28:10happen. Have that conversation with

28:12them. Educate them early about how it

28:15might be handled and offers,

28:17giving them time upfront to consider

28:20what their strategy may be before they

28:22even get the first one. So, be prepared

28:25to explain why buyers might even ask for

28:28other concessions, let alone concessions

28:31to pay their agent. Make sure that

28:34parties understand that compensation can

28:37be negotiated

28:38and it's not necessarily predetermined

28:41because it's not it's not predetermined

28:43what the seller will pay the buyer agent

28:46if they're willing to pay at all. What

28:49is predetermined before the offer comes

28:52in is what the buyer owes to their buyer

28:54agent. That is predetermined, but

28:57compensation within the transaction is

28:59not predetermined otherwise. Make sure

29:02you're clear during your listing

29:05appointment. Make sure you give the

29:08seller strategies that can help them

29:10understand what their options may be.

29:12Remember, if you educate your consumer,

29:14you're going to have a smoother

29:15transaction with fewer surprises and

29:19with less disputes.

29:23So, here are some expectations as we

29:25move forward. All right. by our agency

29:28should be signed before you start

29:30showing property. Very plain, very easy

29:34to understand. Compensation should be

29:36clear, meaning that compensation should

29:39be in your buyer agency. It should be in

29:42your listing agency as well, but it

29:43should be in your buyer agency and be

29:46documented. Well, how are you going to

29:48be paid when you're due to be paid?

29:50There should be no assumptions.

29:54So don't start giving the consumer

29:57assumptions. Give them potential

30:00give them potential outcomes, not

30:03assumptions.

30:05Make sure you engage me early as the

30:08broker. Make sure you engage me early

30:10when you need to. If you have a

30:13question, if you're trying to have the

30:15conversation and you think you're

30:17falling on deaf ears or you're otherwise

30:19not prepared, make sure that you engage

30:21me. We're setting forward clear

30:24expectations on how we expect for you

30:26all to handle this going forward. I want

30:29to be clear, these aren't necessarily

30:31suggestions. They're required practices,

30:33things that we should be doing. They're

30:36designed to help you to grow your

30:38business to protect you and maintain a

30:42represent reputation.

30:45Buy agency agreements again must be

30:47signed.

30:49that last minute that oh I forgot all

30:52that stuff is unacceptable.

30:55You'll see more and more that

31:00builders their their companies are

31:02asking for a copy of your buyer agency

31:04because they want to document for their

31:06records if they're going to offer broker

31:08to broker compensation or excuse me I'm

31:10sorry seller to broker compensation what

31:13that needs to look like. Don't operate

31:16on undocumented assumptions about who's

31:18going to pay what and when. And again,

31:21make sure that you're touching in if you

31:23if you need any help.

31:26So, we'll be doing more training as the

31:29forms are released. I want to start by

31:32telling you that there will be a couple

31:35of town halls this month um starting

31:39with brokers and then there will be

31:41trainings that will be released once the

31:43forms are set prior to their release to

31:47give agents some insight into the

31:49changes. The changes to all forms

31:53currently are isolated to excuse me to

31:56all residential transactions forms are

32:00regulated or restricted currently to the

32:03change for broker to broker cons um

32:06compensation.

32:07So we'll get into role playing.

32:12How do you handle a buyer consultation

32:14in this age using the forms?

32:18We'll discuss further compensation

32:20negotiation strate strategies

32:23how to structure an offer under these

32:26new rules. So what does that look like?

32:28Again, once we have the forms and work

32:30to help you all develop your own scripts

32:34to refine them and build your confidence

32:36so you can deliver an amazing

32:39presentation, full understanding, and

32:42otherwise be prepared for this next

32:46shift in change within our industry.

32:50Remember that these sessions will give

32:51you hands-on practice with the skills

32:54that you need most. will work through

32:56real scenarios. Um, I'll share I'll ask

32:58you to share what you guys are

33:00encountering within your own businesses.

33:02We'll address specific concerns and

33:04ensure you feel prepared for your next

33:07buyer conf conversation.

33:10So, remember that the agents who invest

33:12their time in training

33:15tend to get a better return on their

33:17investment. So, please make sure that

33:19you do everything that you can to

33:21attend.

33:24So, I want to close us out. Agents who

33:28can explain their value, can articulate

33:30their value, will never have to defend

33:32their worth.

33:35I'm going to say that one more time.

33:36Agents who can explain their value

33:38clearly will never have to defend their

33:40worth. Many agents are struggling to

33:44get paid within a real estate

33:46transaction because they don't know how

33:49to defend their value because they did

33:52not

33:54articulate their value well in the

33:57beginning. This change doesn't make your

34:00business weak. It helps you to

34:03professionalize it. Again, agents who

34:05embrace this transparency, master these

34:07conversations, and demonstrate clear

34:09value will build stronger client

34:11relationships and more sustainable

34:13businesses and careers than they ever

34:15have.

34:17You have access, you have the knowledge,

34:21you have the introduction to scripts and

34:24a support system here to help you

34:26navigate these changes. So, it's now

34:29time for you all to put them into

34:31practice with confidence. Remember that

34:33buyers still need representation. They

34:35still need your help, guys. Your skills

34:38are valuable. You are worth and you are

34:41you are worth more than.

34:45So, please make sure that you apply

34:47this. This market will reward you.

34:50Those of you who communicate clearly and

34:53continue to serve clients exceptionally.

34:58So, some next steps for you.

35:02Check your current process on buyer

35:04consultations.

35:06If you have a written presentation,

35:09take it out. See what edits you need to

35:11make, changes you need to make. Start

35:14practicing your conversations in regards

35:16to compensation again until they feel

35:19natural, until you have your confidence

35:22where you can have them. If you need to

35:23role play with a member of of the

35:26office, please make sure that you do so.

35:30Agreements will be updated to remove the

35:32broker to broker compensation sections.

35:35Make sure you review them and update

35:37your templates and your agreements so

35:39that you know where consumers should

35:41sign. Schedule your consultation with

35:43your active buyers.

35:46have those conversations with them so

35:49you can make sure that they understand

35:51even if they're signed a buyer agency

35:53that says and reflects brokerto broker

35:55compensation as possible if they're not

35:57under contract prior to the shift in the

35:59forms. Note that you'll have a new set

36:03of forms with no broker to broker

36:05compensation, which means that you're

36:08going to have you should have this

36:09conversation with your active buyers so

36:12they understand what this means in the

36:14offer and negotiation process.

36:18Make sure that you attend the upcoming

36:20trainings, the trainings offered by STR.

36:23We'll make sure we get those out, but

36:24you get those directly as well, but also

36:27the additional trainings that we'll be

36:28doing in house as these forms are

36:32acclimated into the arena.

36:35You're not navigating this alone.

36:38I'm committed. We're committed here to

36:40your ongoing success.

36:43We're going to update our resources. I'm

36:46available to support you. Our office is

36:49as well when you need it. Remember again

36:52that agents who adapt quickly and

36:54communicate will capture market share

36:56from those who resist the change, who

36:59decide they want to argue and mumble

37:01about it and end up stumbling through

37:03these conversations versus being

37:04effective. This is your competitive

37:07advantage.

37:09Do not miss your opportunity.

37:12So with that guys, we'll close out um

37:15this training for today. I want to thank

37:18you all for taking the time to take a

37:20look and for being a part of what we

37:24have been doing. Thank you all so much.