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Notice To Buyer's Agents: It's Not the Listing Broker's Job To Get YOU Paid!

By Bryant Tutas

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

July 15, 2011 08:21 AM

The co-broke is an offer of compensation. It should be used to SUPPLEMENT the arrangement you should have already made with your buyer. Your fee, compensation, commission is your responsibility....NOT the listing agents.,

If agents choose to work for the co-broke only then they will always be at the mercy of the Listing Broker.

As a Listing Broker I have a minimum that I will work for. Unfortunately the short sale lenders and REO asset managers limit how much I can charge the seller. The FTC also prohibits me from charging an upfront fee. Therefore, the only way I have to pay myself is by reducing the amount of the co-broke being offered. So I do,

Buyer Agents have the advantage of being able to charge as much as they want. There are no limitations set on the buying side commission. You guys are so lucky and don't even realize it.

My suggestion is for Buyer Agents to learn how to get paid. Then the co-broke will NEVER be an issue. Just think how much better service you could provide your Buyers if the commission was taken out of the equation? What if your compensation was settled before going to work? Kind of like the listing commission. Dontcha think?

Here you go. I'll even help.

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Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

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Jessica Holtzman

Keller Williams Realty, Inc. - Moorestown, NJ

Real Estate Agent in Southern New Jersey

Good Article

Jul 15, 2011 08:40 AM

William J. Archambault, Jr.

The Real Estate Investment Institute - Houston, TX

Bryant,

They'll never be professionals until they take command of their own destiny.

"Amazing they still think this is something we are required to do." What makes you think they think? It seems to me you're doing all the thinking. It could be worse they could be working with one of their own.

Bill

Jul 15, 2011 08:49 AM

Maya Swamy

Funds Available - Long Beach, CA

Ph.D. Long Beach, CA - fundsavailable.com

Do you have a problem getting buyers agents to show your homes? I would think you might.

Jul 15, 2011 08:52 AM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

Everyone should be clear on the commission structure up front. Right you are with the limitations placed on the listing side by regulation. It's a business. All buyers agents do not have to work with you.

Jul 15, 2011 09:02 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Maya. Not at all. Most of my listings sell in less than a week with multiple offers. I offer a fair co-broke.

Jul 15, 2011 09:03 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Just today the FTC has ruled that the MARs restriction against taking adavanced fees does not apply to agents. Plus we do not have to use the MARs disclosures anymore.

Check it out:

http://www.ftc.gov/os/2011/07/110714marsrealestatepolicy.pdf

Jul 15, 2011 09:04 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Maya. You know I like you but I would hope you would get more from this article than whether or not agents show my listings. If agents don't show my listings over the co-broke then so be it. I have zero issue getting my listings sold. The point of this post is to let Buyers agent know that they dont have to be slaves to the co-broke. My agents use BBAs and not only have a minimum commission but in some cases will even take a retainer fee AND we charge an additional transaction fee. It is not an issue at all., Buyers want to work with us.

There are no surprises and no limitations with what propertries we will show them. FSBOs, $100 co-brokes. It makes no difference at all. We get paid regardless. And the best thing is that he buyer knows it. And because they know it they also can rest assured that we are not eliminating good properties because the co-broke is too low.

Open up your mind and explore a golden opportunity to become better at what you do and get paid accordingly. Or not.

Jul 15, 2011 09:12 AM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

Bryant: Do you conduct much FHA business? Does FHA allow the buyer to pay any money to the buyer's agent? For some reason, I'm thinkin' that FHA will not allow it.

Jul 15, 2011 10:42 AM

Karen Luke

South Metro Property Management, LLC - McDonough, GA

Henry County Real Estate

It's rare that I even come across any short sale listing that doesn't explicitly say 50/50 commission split in the hidden remarks.

Jul 15, 2011 10:45 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Karen. On my short sale listings I offer a set percentage as the co-broke and it never changes. It's guaranteed. I don't believe it playing games with the buyer agents co-broke. On some sales I make more and on some sale I make less. The co-broke stays the same.

Melissa. I don't know if FHA limits or not. Most agents in my market just take the co-broke whatever it may be. I do know the FHA will allow the seller to pay 3% of the buyer's closing costs. A portion of that could be used to pay the buyers agent. See that's what most buyers agent don't get. The buyer can ask the seller to pay some of their closing costs. One of these costs can be extra commissions per the BBA. It really is a simple thing to do.

Jul 15, 2011 11:21 AM

FN LN

Toronto, ON

Hi BB - A very simple solution is for the buyer's agent to get the client or customer to sign a Buyer's Representation Agreement or Customer Service Agreement, as they are titled in Ontario, or a similar equivalent in the buyer agent's jurisdiction.

Jul 15, 2011 01:03 PM

Rob Arnold

Sand Dollar Realty Group, Inc. - Altamonte Springs, FL

Metro Orlando Full Service - Investor Friendly & F

Interesting subject. Any more on short sale listings, I offer the buyer agents a little less and charge myself a little more. They take so much time and energy on the seller side that I figure I deserve more.

Did you see the news on Earlybird this afternoon? Looks like the FTC is going to exempt Realtors from the MARS rules. That means upfront fees can go back into play hopefully. Good news if it does.

http://www.ftc.gov/os/2011/07/110714marsrealestatepolicy.pdf

Jul 15, 2011 01:58 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Rob. Unless Florida overrides the FTC we acn charge upfront fees once again. I too take a larger chunk of the pie on short sale listings.

Marc. Not sure why agents in my area are so against using a BBA. I think it's fear and not knowing how to present it. Buyers have no issue at all with signing one.

Jul 16, 2011 12:44 AM

Kimberley Kelly, SFR, HAFA, GREEN

HK Lane, Christie's International Affiliate, 760-285-3578 - La Quinta, CA

I do Real Estate like I played polo-to WIN!

Here in CA, commission is always negotiable, but a standard 3% co-op is expected. However, on a Short Sale Listing of my own, I am now increasing my side by .5% because the List side does ALL the work! Buyer's Agents are fine with 2.5% and Lenders approve 6% as a norm. Any reductions are split 50/50.

Jul 16, 2011 09:10 AM

William James Walton Sr.

WEICHERT, REALTORS® - Briotti Group - Waterbury, CT

Greater Waterbury Real Estate

Bryant,

People needed to hear this. More people should, I think. Kimberly's comment has some thoughts racing through my head. Hmmm...

Jul 16, 2011 12:10 PM

Gary L. Waters Broker Associate, Bucci Realty

Bucci Realty, Inc. - Melbourne, FL

Eighteen Years Experience in Brevard County

Real estate agents are "independent" contractors. "Independent" means....a lot of lattitude.

Jul 17, 2011 01:03 AM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

BB: Just got back to look at your comment. We do a lot with seller closing cost credits on short sales (and 'traditional' sales) in our market. We are seeing the banks pay those closing costs credits. Not sure whether the banks would allow that money to go towards the commission though. That would be something to explore.

Jul 17, 2011 04:22 AM

Brenda Mullen

RE/MAX Associates - San Antonio, TX

Your San Antonio TX Real Estate Agent!!

I have never heard of closing costs going to help pay commissions. Interesting. May be something to look into just a Melissa said. Always learning something new around here :).

Jul 17, 2011 09:38 AM

Renée Donohue~Home Photography

Savvy Home Pix - Allegan, MI

Western Michigan Real Estate Photographer

I have a feeling that the environment of distressed sales is going to change the way we work. I toss around the idea of charging in the BBA :)

Jul 17, 2011 01:17 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Melissa. My experience is they will. Now there may be some exceptions. FHA PFS for one.

Jul 18, 2011 12:47 AM