Step One: Know your worth! and the worth of your brokerage. Coldwell Banker Vanguard offers buyers a PREMIERE service. Our agents are experienced, trained and highly competent. You were hand selected to join this brokerage which means you have what it takes to do an excellent job for your buyers and you deserve to be compensated accordingly for your time, expenses and expertise. Other buyers' agents may be happy to be a tour guide/UBER driver, but that's not who YOU are.
Step Two: Convey your worth to buyers. Never skip the initial buyer consultation. A sit down before you go house hunting sets the tone for the rest of the relationship. It establishes you as the expert and the trusted advisor. Talk with your buyer about the representation you will be providing, go over the home warranty, disclosures and the PASA. Talk with them about the need for pre-approval in a sellers' market, and talk about the home buying process (binder, loan processing, appraisal, home inspections, etc.). Set realistic expectations about your service and ask them a lot of questions about their motivation, timeline, expectations, preparedness to move, etc. so that you know if they are a buyer you want to take on. It is okay to say NO to a buyer who isn't willing to pre-qualify, has no immediate need to move, is unpleasant or unrealistic.
Step Three: Convey Your Worth to Builders, FSBOs and "Discount" Listings BEFORE Showings. Even discounted brokers, builders and FSBOs want to get their inventory sold, so BEFORE you show the listing, check the co-op commission offered. If it’s less than 3%, make a phone call before setting the showing. Let them know you would be happy to bring a buyer, but that you cannot accept a low co-op. If they are willing to change that, get it in writing signed by the sellers BEFORE the showing. (E-signature is a wonderful thing.) It's also a good idea to print out the private MLS sheet for every showing because if they change the co-op later, you have proof of what it was on the date you showed the home.
If they won't change the co-op, let your buyer decide if they like the home well enough to pay the difference. If they don't, don't show it. If they do, have them sign the MLS sheet and show away. You've disclosed.
Step Four: Getting paid. If you are getting paid by the buyer for part of your commission, submit the buyer broker agreement with the PASA to the title company or closing attorney and let them know the buyer has agreed to make up the difference between what the seller offered and what you are charging for your services. Also, put it on your pay at closing so the office admin knows what to tell the title company or attorney what to cut the various checks for.
Why have an Exclusive Buyer/Broker Agreement?
1) Buyers have a short attention span They are excited about their home search and are more likely to get caught up in the moment while at a builder, FSBO or open house and make a poor buying decision.
2) Discount brokers, FSBOs and Builders They are out there. In force. They are buying listings by taking less, so you are getting less in co-operative commission. Some are as low as 1%. They are not helping their sellers and frankly, my dear, they don't give a good gosh darn about you or your operating costs.
3) NAR Code of Ethics. Did you know that just working with a buyer is not enough to bind them to you if there is a dispute over who gets the commission? The Code of Ethics says we should ask, "Are you under contract with another Realtor®" not.” Are you working with another Realtor®" because unless there is a written contract between the parties, then that buyer is up for grabs.
4) It's better for your buyer. Once they sign with you, they will no longer be hounded by your competition. All they have to do at a model home or open house is hand the host your card and tell them, "Please tell my Realtor® I was here." No more spammy emails or phone calls during dinner.
5) It sets expectations that make it easier for you to close your buyer. The exclusive buyer broker agreement has responsibilities for both the brokerage (and you) and the buyer. They understand that this is a professional relationship with real obligations on both sides. It says, "We mean business" and that we will earn compensation for our efforts.
6) Only written contracts are enforceable in court. No further explanation needed.
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