Article courtesy of Scott Hoyt. Scott is someone I respect and used to work with!
The other four percent ( I am being liberal here) are consumer focused. The difference is outcomes, one desires great outcomes for agents, the other creates great outcomes for clients.
Want to know what an (out of touch) agent focused company says in the wake of serious changes* in todays real estate market?
First some context.
Buyer Agent commissions are being removed from MLS systems and most listing contracts. A sellers willingness to pay a buyers agent to negotiate against them is no longer listed in the MLS? There are many arguments against sellers paying a buyers agent, but for expediency lets get to the quote:
“We value agents who show our listings and appreciate the offers made to our sellers through buyer agents. We believe buyer agents deserve to be compensated for the value they bring to their clients. We plan to strongly encourage our sellers to provide for that compensation in their listing terms with us.”
Yes, you read that correctly, a large firm sent that love letter to agents and an agent forwarded it to me. I do not entirely disagree; buyers agents should be compensated appropriately for services rendered, by the buyer.
They said they will work their sellers for buyers agent commission up front, before seeing the terms of an offer, before the showing. Who do they work for?What email did they send to their clients?
The same clients they have a fiduciary duty to represent. The same clients who entrusted them to do the right thing. They said our clients will give up a percentage of their sales price before you even ask.
The brokerage said we do not believe buyers are strong enough to pay their own fees. We will take the low road and enable weak buyers agents that can not prove value to their clients. We are not going to focus on building the most irresistible listings possible.
Think about what the rest of the process, transaction, sale looks like if this is how they solve problems. Worst part this company is not alone this is more than common.I can and probably will go on forever about what home buyers and sellers should do to get a stronger outcome.
The next 36 months are going to be awesome!
*Prior to August 17th Multiple List Services across the country are eliminating the buyer agents compensation from listings. In the past this listing was an easy way for agents to boycott listings that did not pay them enough.
Now that is not possible, buyers must now sign a form recognizing the costs of their agent and responsibility for payment prior to touring any home. A huge paradigm shift is the way real estate commissions are handled.
