As of August 1, compensation fields have been removed from Canopy MLS and compensation cannot be mentioned anywhere in a l property listing.
And in another major change affecting the industry, agents are now required to enter into buyer agency agreements prior to showing any property – even virtually. (Previously, many agents waited to get an agency agreement signed until shortly before they submitted an offer.)
This means a buyer’s agent will need to negotiate cooperative compensation fees with a listing firm and/or seller, and will need to have in-depth discussions right away with buyer clients about the various ways the buyers’ agent can be compensated.
Rachel Brown, Broker in Charge at Keller Williams Professionals in Asheville and LOTSAR’s incoming president, has some tips for REALTORS® as they navigate these changes:
- Get the buyer agency agreement signed before ever opening a door.
This is not the time to take a shortcut or to try to find a way around the settlement terms. Getting the agreement signed right away can be seen as a positive – it provides clarity of the process with buyer clients and helps eliminate buyers who are not yet serious.
- Do a good job of explaining your value proposition.
Buyers and sellers need REALTORS®– they can’t be expected to know the market and transaction process like we do. That said, it’s important to explain this to a potential client in a concise, compelling way. And this takes practice. Do trial runs of describing your value proposition to friends, trusted past clients, or colleagues. As you practice, you’ll find that you get better and more comfortable.
- Take the time to have an in-depth conversation with your new client, going deeper than you probably ever have.
Work in the time to sit down with a new client and thoroughly explain all parts of the process. Don’t just wing it (see #2). This is the first step in showing your value and your expertise. Build trust by establishing your credibility right away.
- If you aren’t a strong negotiator, read books on the topic, take classes and learn how to better provide this essential value to clients.
And if you think you’re a good negotiator, that’s great, but we can always get better! Several books that can be extremely helpful are “Never Split the Difference – Negotiating As If Your Life Depended On It” by Chris Voss and “Exactly What to Say: For Real Estate Agents” by Phil M. Jones.
LOTSAR classes and events are a great way to expand your knowledge base, learn about best practices and make connections that will help your career. More than ever, it’s important to build a trusting relationship with the other agent in a transaction, and to grow your industry relationships in general.
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