Make sure you still get paid as a buyer’s agent after the NAR lawsuit.
Unless you’ve been living under a rock, you’ve heard about the recent NAR lawsuit and its potential consequences. Here’s the short version: The way buyer’s agents get paid is going to change. Now, buyer’s agency agreements will need to be signed, commissions will need to be clearly disclosed ahead of time, and commission percentages won’t be advertised in the MLS.
But don’t worry because you can still thrive as a buyer’s agent in this market; you just need to adapt. Here are three steps you can take to make sure you get paid in this new landscape:
1. You need to pre-qualify buyers now. Buyers will start their home searches by calling agents. This is where you can use the LPMAMA script to set up an appointment time and secure their business. If you don’t already know the LPMAMA script, it stands for Location, Price, Motivation, Agreement, Mortgage, and Appointment. By asking the buyer questions about these key points, you can understand what your buyer wants and needs, building a strong foundation for your relationship. Reach out if you need help mastering this script.
2. Your clients need to sign a buyer’s agency agreement. After setting an appointment and securing the relationship, get your client to sign a buyer’s agency agreement. This agreement covers what services you will provide and how you will be compensated for those services. It also gives you exclusive rights to represent your client with the NAR lawsuit changes. These are no longer optional; you need to get your buyer to sign one if you want to get paid. Remember that clear communication about their agreement makes all the difference.
“Buyer’s agent’s agreements are no longer optional.”
3. Ensure you get paid. After the NAR lawsuit, more communication between the seller’s agent and the buyer’s agent is needed. While your fee is outlined in the buyer’s agent agreement, the seller may or may not cover some of that fee for your buyer. Here’s the good news: These commissions can be rolled into the mortgage, which will make negotiations much easier. However, you still need to communicate effectively with all the parties involved to make sure you get paid what you are owed.
One thing that you should do is practice explaining the buyer’s agency agreement in plain language and be comfortable discussing your fee. My mentor reminded me that cost is only an issue in the absence of value. This means that it is important not just to inform but to actively show your potential clients how you can assist them in finding their dream home at the best price with the least amount of hassle. Don’t forget to use real-life success stories from your previous clients to help establish credibility and trust.
As always, call or email me if you’d like to practice role-playing this scenario or if you have any questions about this topic. I look forward to hearing from you!
Lastly, here’s an exciting opportunity for you: On June 26, we will be having an exclusive masterclass with Coach Brian Moses at the Tower Club in Tysons Corner, Virginia. Learn how to excel as a buyer’s agent in today’s real estate market. Seats are limited, so RSVP now using this link.
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