No matter how the whole commission landscape shakes out going forward after all the legal issues are settled, there is no question that the buyer agent/client relationship has been changed forever. Whether that’s a good thing won’t be determined for a long time. But truth be told, as usual, the strong will survive.
As mob boss Tony Soprano growled in an episode of “The Sopranos” when irritated by all the non-stop reminiscing going on at a dinner with too-talkative associates, “Remember when…is the lowest form of conversation.”
That may be, but for quite a few agents, “Remember when…” will refer to a time when the buyer agent/client connection was all smiles and positives. What’s changed? Money. Remember when the relationship with a new client was blossoming, and every aspect regarding buying a house was discussed except the money you would earn for your services? Having it baked into the closing contract meant the buyer knew there were fees paid, but the split between seller and buyer agents was not their concern.
Up to now, you still emphasized your skills to new clients, showed off previous sales accomplishments and shared how you would help get them into their dream house. Now? Probably before anything else you will give them that information but include what it will cost to contract for your services.
If you’re not on top of your game, that can change everything. New homebuyers who don’t want to go it alone and thus have to dig deep into their pockets just to begin the process of viewing homes for sale may now see you as their quasi-employee. Instead of having your commission paid at closing, when they will usually be thrilled with what they bought, grateful you helped get them there and happy you will be compensated, they are now potentially having to pay you in advance, and expect results. That’s a whole ‘nother smoke.
Money changes everything. Consumers demand they get what they pay for. If they buy a television or a refrigerator, they expect it to work as advertised. If they pay whatever a health professional charges, they expect to be made well. And now, if they pay a buyer agent’s fee, they likely expect to be guided into the end result of buying a house.
You will now have to be contracting with new clients, which should spell out precisely what they get for their money, but it can be a slippery slope. That they very likely will be making the biggest expenditure of their lives makes it a much different buy than a washing machine. Or laying out a hundred bucks for a concert they may or may not enjoy. Now they’re parting with thousands of dollars right off, and will want to know, and be shown, why you are precisely the correct professional to bring them home.
You know who should see these changing times as exciting and opportunistic? You! Because if you’re reading this, you are a professional, having accessed our website. Soon you will have less competition because agent ranks will almost surely be thinned. Those uninterested in making real estate something almost 24/7 will lose traction fast unless they’re willing to work for free a lot of the time. Anyone wanting to play in the big leagues better put in the work. Most everyone can hit a fastball. But only those who can hit a curve, too, get to play in the majors.
How do you get there and stay there? Same way you learn to hit a curve. By working hard, perfecting your skills, learning from others, utilizing technology and having the desire to excel. So that when you’re having initial consultations with prospective clients, explaining why you are worth what they must pay, you’re confident because you’ve proven yourself over and over again.
Tony Soprano was a made-up character, but words of wisdom can come from anywhere. If longtime real estate pros someday soon say “Remember when…” they will be referring to the time the industry experienced a sea change that eliminated the pretenders and made their jobs easier, not harder.
