Buyer Agreements and Commissions Aren’t as Complicated as You Think

by Steve Shull

All summer long, I’ve been talking about buyer commissions and agreements.

Well, now it’s fall, and I’m STILL banging this drum…and I’m going to keep banging it, because most agents are still worried and confused about it all. 

It’s scary, I know. These lawsuits and rule changes have put a big spotlight on how you get paid and how much you get paid. It’s a referendum on your value as a real estate professional, and it all seems very complicated.

But from our perspective at Performance Coaching, it’s actually very simple...

You negotiate your fee directly with your client, period. 

When you’re a listing agent, you negotiate your fee with the seller. When you’re a buyer’s agent, you negotiate your fee with the buyer. End of story.

As you know well, in the past, buyer’s agents didn’t do that. The seller offered the buyer’s agent a commission, and that was it. 

I used to encourage agents to move towards the listing side of the business for exactly this reason—because representing sellers was almost always more lucrative than representing buyers.

Now, instead of having someone else control your fee, YOU get to decide what you get paid.

It doesn’t have to be true anymore that the real money is on the sell side, and representing buyers is for new or less skilled agents. Those old narratives can get reset.

All it takes is a very simple conversation: “Mr. or Ms. Buyer, ultimately you are responsible for paying my fee.”

Yes, there are various possibilities regarding exactly where that money comes from. But in the end, your buyer has to find a way to pay you.

That’s the conversation you dread having with a buyer…

Because you’re coming at it from a place of FEAR, not CURIOSITY.

Before the conversation even begins, you’ve already decided it’s going to be an issue. You’ve already assumed the buyer doesn’t want to pay your full fee. And in your mind, you start to panic and wonder how you’re going to survive if they don’t want to pay you.

When in fact, so far, based on everything I hear from the agents I coach…

50% of the buyers simply say, “Send me the agreement and I’ll sign it.”

They’re not questioning anything.

The other 50% might have questions, and there’s nothing wrong with that. This situation is new. Everyone is learning how it works. A question doesn’t necessarily indicate an objection or dealkiller.

This is where CURIOSITY comes into play.

Rather than fearing what they’re going to say, FIND OUT what they’re thinking and feeling. 

What is their perspective? 

What are they hoping for? 

What are they worried about? 

What are they willing or not willing to do?

Right now, I see a lot of agents working really hard to keep things from changing. Everybody wants to encourage sellers to offer buyer commissions and encourage buyers to ask for them.

But as Chris Voss likes to say, ignore human nature at your peril.

Now that sellers have a choice between whether to pay or not, there is the distinct possibility they are going to choose not to. When the dust settles, chances are good that sellers will be paying listing agents and buyers will be paying buyer’s agents.

I’m not trying to predict the future—just telling you to be prepared for what might come next.

Are you going to approach it with fear or curiosity?

Are you going to try to preserve the status quo, or take this opportunity to raise your standards?

Are you going to buy into the illusion that something is better than nothing and continue to compromise, rationalize, and give away your value?

Or are you going to protect your time, knowledge, and money by working ONLY with people who are willing to commit to you and pay what you feel you’re worth?

At Performance Coaching, our mission is to help you build a real estate business that’s sustainable, scalable, stress-free.

We do that by teaching you how to be a full fee agent, build a repeat and referral business, and enjoy the process no matter what.

We will NOT take part in the conspiracy of turning you into a commodity—which everyone else is doing, whether you realize it or not.

If you want to break out of the race to the bottom and learn a better way to do business, join us for the next 3 months of Daily Accountability Calls.

You’ll get access to three live, large group coaching calls every day: business fundamentals in the morning, and role play in the afternoon and evening.  

Real estate rewards consistency, and these calls are designed to help you produce a more consistent effort in your life and business. 

Would I be wrong to think you could use some help in that department? Enroll now to get the support your business needs.