I want to get paid by my client!!!

By
Real Estate Agent with Long & Foster Real Estate Inc

I have noticed a trend recently whilst reading different posts that there is a frustration in the industry with agency and  if we practice true agency will remove the problems of getting paid by our clients.

I am tired of being paid by the opposition and having my client wondering who I am truly working for and second guessing any advice I give when representing buyers. I am tired of my buyer clients wondering what I bring to the table because so many agents have told them that their services are FREE. I am sorry I am not independently wealthy, although if I won the lottery I would still do real estate but travel more. I need to get paid and would prefer to be paid by my client.

Now, I know many will say, "You are, they fund the transaction and without the funding you would not get paid." Whilst I accept the thinking I still find this mis-leading and confusing for the client. If when I meet my client and we go over the consumer notice and my client signs a buyer agency agreement we actually discuss what I am going to do and agree a fee, we can remove all their fears about helping them with For Sale By Owners, New Construction, Short Sales, Foreclosures, Sherrif's Sales etc. We have an agreement of what I am going to do and what they are going to pay, and how that is structured is negotiated according to my brokers policies and what I am willing to accept for my work. No longer am I interested in bonuses, or what the seller is willing to offer I have an independent agreement with my buyer for my services and he understands what he is paying me to do. It removes the lure of dual agency and working with a listing agent who is not going to represent my client fully and in their sole best interest.

If all buyer agents did this, it would remove the arguements over fees that are offered and whether an agent will show a property because the fee offered is low. How about no fee being offered, then truly your services will be free, but you probably won't show the property and the MLS would refuse to list the property as no compensation is offered. Another mistake and blockage to true agency representation.

Too many of us live in the past and are unwilling to look to the future and consider what our clients really want, if we did maybe the present would look a lot more hopeful. As I said in my title, I want to be paid by the person I am representing in the transaction, my client and no one else and to have no shades of gray. I know I can explain my value and I am willing to work with clients in ways that suit them, not the industry. And I will go on stating that until I see the reality of what I am proposing happening on a day to day basis.

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Ambassador
760,780
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Great post.  Buyer's agency needs to change a bit IMO letting the client know that we do, in fact, expect to get paid.  It's a bonus to them that 90 percent of the time, we get paid from proceeds out of the sale, but the buyer's rep agreement spells out exactly what I will do to earn my pay and if they breach that agreement, they are still liable to pay.  I wrote a post a couple of weeks ago about buyer's rep agreements and "working for free". 

Have you checked out the Accredited Consultant in Real Estate site?  You may like there philosophy and business model :).  Suggested by the way.

Sep 26, 2011 10:39 AM #1
Rainmaker
248,943
John Meussner
Total Mortgage Services, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Costa Mesa, CA
Making Mortgages Easy Costa Mesa, CA 484-680-4852

I completely agree with your premise, as there are many, many times I do 100% of my work on a file and for a reason completely out of my control I dont get paid a dime (Just had an arms-length transaction where 2 weeks prior to settlement, the seller (parents) just decided they didnt want to see the home to their daughter anymore!- OUCH!).

One problem that would rise is with buyers, especially first time homebuyers that are short on assets-  many can barely afford closing costs, let alone additional costs on top of that.  Proceeds paid by the seller certainly keeps the door open to more buyers who have a tough time saving a lot of money.

Sep 27, 2011 10:33 AM #2
Rainmaker
283,894
Nick & Trudy Vandekar
Long & Foster Real Estate Inc - Devon, PA
Realtors - Selling the Main Line, PA Lic AB067198

I think there are many ways to find this if the buyer is short of funds, and mortgage companies are fubnding it already when the buyer is "over-paying" so the seller can pay the buyers agent. So it just needs some sensible thinking that the buyer agency fee be built in to the mortgage amount or be a seller assist which is already acceptable to the banks with the buyer commission showing on the HUD on the buyer's side. Many brokers already do this for the addon amount they charge buyers for paperwork etc.

Sep 27, 2011 10:45 AM #3
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Rainmaker
283,894

Nick & Trudy Vandekar

Realtors - Selling the Main Line, PA Lic AB067198
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