I have for several years now used a consulting approach with my clients, who are mostly referrals. For sellers, I utilize Merv’s SmartSeller Plan in listing appointments. First, we review which services will fit the needs of the seller and the property. If it is a traditional sale, usually the sellers choose the shared risk plan or traditional commission for payment. If it is a short sale, they pick the traditional commission plan. I haven’t had any sellers choose to pay for services by the hour yet. With buyers, I have gone through the SmartBuyer plan and use it in showing the value that I will bring to clients when working with them; however, I had not offered a choice in payment for buyers until recently. I want to share my experience with two different buyers and the choice of being paid by the hour.
Recently in "Consulting with Buyers"
All comments would be greatly appreciated! I have been role playing and feel very comfortable with all discussions with potential clients regarding a consultant interactions with; a homeowner who is not considering selling; one who is considering selling; the FSBO; but I am having an extremely tough time with a buyer. The analogy of the boss giving a specific task to one employee versus a number of employees is excellent and easily understood. The discussion regarding a potential buyer who is not sure wheather they really wish to buy also makes sense. My difficulty (potential mental block) is explaining the advantages of using an accredited consultant for the buyer and explaining how or why a fee(not absolutely necessary but again a potential of working for nothing) is advantageous to them when in reality on paper(assuming my potential competition practices fiduciary counsel earnestly) it appears no different than a Buyer Agency Agreement willingly accept by thousands of agents; but with costs!.
What am I missing?. Please comment!
Hi ACREs,
Glenn just put up a new video "Let the Buyer Eliminate the Risk". Really good job Glenn with the dialog - I hope ACREs take a few minutes to watch it and pass it along.
I decided to expand the moving truck analogy to an entire post which you can find on Active Rain or the Times Community.
I'd welcome your comments either place but please keep in mind that the Times Community is public, so if what you have to say is directed at the ACRE® Community, it would be much better if you comment here.
When I first sold real estate in 1984, buyer’s brokerage was rarely practiced and even more rarely compensated. The theory was at that time that if the buyer wanted an agent to represent them, then the buyer should be the one that pays for it.
I posted a blog on active rain https://actvra.in/ffn.
It's alo posted on the Community Exchange, your comments are appreciated. Thanks in advance to Cindy, who has not missed one yet!
Although some states ban the practice, called dual agency, in which the same real estate broker represents the buyer and seller in a real estate transaction, most states have settled for a kind of disclosure Band-Aid that doesn’t work well for consumers.
It’s a little like the warnings on cigarette packets about the dangers of tobacco that really don’t make much difference to those who really want to smoke.
The problem is — and all real estate agents understand this — when consumers find a house they want to buy, they become so emotionally involved in the purchase that they barely listen to the legalities because they are focused only on two things: price and purchase.
Read more
https://realtyconsults.wordpress.com/2011/07/16/dual-agency-disclosures-fail-homebuyers/
Do you work with buyers? Then don't miss this webinar!
Join Industry Partner Glenn Freezman of Nucazza for a powerful webinar focused on gaining new buyer clients. Glenn will demonstrate how ACRE®s can access a whole new pool of home buying clients through the relationships they have with banks, credit unions and other lenders.
This 1 hour webinar is scheduled for Wednesday, July 13th at:
4:00 PM AST, 3:00 PM EST, 2:00 PM CST, 1:00 PM MST, 12:00 PM PST.
I just posted this on Active Rain and I would like some commments if possible, here is the link, thanks in advance, Short URL: https://actvra.in/dxJ
Glenn
Check out my new post on the Times Community. Comments are welcome!