Getting Paid What You're Worth

Cloud, and we should be good to go here. All right, so let's, let's get into. This is one of our. I just love this topic. And maybe it's because I was trained this way when I first got into real estate. It's a weird industry when you're coming into real estate. I came in in 2007, March, and I got a coach in April. So I went to my first Craig Proctor event in April 2007. And I can't remember who planted this seed in my head, but it, but my first couple of years was mainly working buyer deals. And so maybe it was my coach, but I don't, I don't know who it was said, what would you do if there was no CO broke? Like, what would you do as a buyer agent if there was no co broke? Like, how would you get paid? You know? And so the whole philosophy that I used out of the gate was you have to be able to, in a sales process, sit down with somebody before you work for them and show them that you're their best option and get them to hire you as an agent before you get to work for them. And that was my first, you know, 27 transactions in 10 months. And then 44. Of the 71 transactions I did when I started in real estate, I think only two were listings. So I just figured out some easy buyer legion. I used like Craigslist back in the day, which, which worked and then like an ad in a newspaper for distressed sales. And I sold like 71 homes and, you know, by the end of my first full year. But I sat down with, with every one of those buyers and I got them to commit to work with me before I did anything for them. And I got them to commit to pay me a commission that was not linked to the CO broke and I got them all to pay me a transaction fee. And so when I got to work on the listing side, I, you know, I had that same mentality, you know, like, what. What value could we provide and how could we get paid? You know, where we're not just playing the, the game, right? The standard X percent commission and, you know, and co brokes and considering, you know, guiding your sellers on what they want to co broke and transaction fees. And I remember. Does everybody know who. Here, raise your hand. I've only got one screen up, but raise your hand if your broker has charged you a transaction fee. Raise your hand. Yep. Everyone keep your hands up because I want to see people. Yeah, keep your hands up if your brokers charge you transaction fee. Put your hand down. Now keep your hand up. If you charge your clients a transaction fee. Okay, so, so it's the weirdest thing where like we're okay paying a transaction fee to a broker and, but, but not charging our clients a transaction fee. So we're going to go through that. The mindset of it, for some of you, it's going to be really uncomfortable. When I started doing it, this was when I was new in the business. I struck it out of my agreements 10 times in a row because it just freaked me out a little bit. Asking for more money than like what seemed like a ton of money, like 3%. Remember, I did my first buyer transaction was a father son. They flipped a house. We paid 620 for it. We flipped it at 900 and they had identified the house. I remember getting paid $18,000. This was my first nine months in the business. And I'm like, this is not right. There's no way. And of course, every deal is not that easy. And some of them, you'd give the money back rather than actually do the deal. And I charge them a transaction fee. Right. So I think a lot of this is mindset and it's really timely because we actually have like major litigation. Raise your hand if you've heard of the litigation where like every major real estate company is being sued because of like collusion around buyer co ops. Raise your hand. Okay, so literally there's major like industry impacting litigation that says it's not. And I'm not a lawyer, so don't quote me on this, but essentially it says it's not. You're not allowed real estate brokerages to sign a listing agreement, let's say for 6%, and you're giving 6% to a buyer agent. So the implications of the lawsuit is that it's going to be, you know, you go into list a home and you negotiate a list rate. And buyer agents are out there working with buyers and they negotiate a rate to work with buyers, which is really super scary for a lot of you because you've only relied on like, yeah, whatever it is, if it's 2% or 2 and a half or 3%, I'll take any of it. Right. Because I didn't really have to meet with the seller to get them to agree to pay me, but they pay me. So imagine a world where that goes away. And I'm going to give you some tools today that you can swipe and deploy in your business that will allow you to. On the buyer side, we'll start with the buyer side, I'll run through the entire process. I'm not going to give you every tool because that would be a lot, but I'm going to give you three or four tools on the buy side and then three or four tools on the list side that you can swipe and deploy and use in your business right away. Chris, do you have your hand up for any specific reason? Sorry, no, I'm going to take it down. Sorry. You're good. You just saw you hanging out there and so any questions, any challenges, mindset set wise, put them in the chat so I can address them in real time. And this is, you know, this is going to be workshop. I'm going to pull up links and I'll make a folder afterwards where you guys will get access to all of the tools that I'll go through. So the mindset on the buy side, raise your hand. Again, I've only have one screen, but raise your hand if you go to work for a buyer before you have them as a client and be honest. So, okay, raise your hand if you've ever shown a home to a buyer that hasn't been a client of yours. It happens to everyone, right? So, so I did that, you know, from time to time. I was like, oh, this is a good price point. Let me just run out and show the house. And then it's like you're screwed from that moment on. So the mindset here is that we list buyers. So would you ever like, oh, I heard my neighbors listing their home. Let me just be proactive. I'll take some pictures and I'll market it for them and let me just see if I can sell it for them and hope that it sells. You'd never do that on the listing side. So we're going to have the same mindset around buyers. We're just never going to work with a buyer until they're an actual client of ours. And there, there are some people that, you know, say one showing, you know, and then they have to commit. It's always hard to get them to commit to your process after you go out of the process. So you're essentially sitting down with buyers and listing them. And so I'm going to show you what that process looks like. You're getting them to agree to pay your commission. If there's a shortfall, like if you charge three and a half percent, which is what I charged back in the day, if the CO broke is 2 1/2 percent, I'm going to show you how to get paid the Deficiency. I'm going to show you how to get paid a transaction fee. Some of you are going to mentally freak out around all of it. So I want to hear you in the chat around why it won't work. But you have to convince yourself and you have to be able to show buyers that you're really valuable. And the reality is, with what's going to happen in our economy and just the shift. I was going to say shitstorm. It's what I meant to say, but it's shift storm that's coming. You're going to have to be able to, you're going to be in a better position to just sit down with buyers and like, you need an expert to help you navigate this market. Right. This is the kind of market that we're coming into that true professionals will just dominate. And if you don't have an actual sales process on the buy side and list side, you're going to be at a major disadvantage. All right, Ashley is not paying attention. Called her out, she's chatting and she's really into her call. I don't know if you guys can see her, but she's really working hard on getting someone under contract. All right, let me share my screen. All of these will be posted and you'll have access to them. Where the heck is my screen? All right, can you guys see my screen here? Yes. All right, cool. So let me put you guys on this screen so I can still make you answer questions. All right. Raise your hand if you have a buyer. Like a really sort of step by step buyer system. Raise your hand. Like, starts with a presentation. You sign every buyer. Raise your hand. Oh, perfect. All right, so. So like 90% of the 1 screen does not have it. So this is going to be amazing. So I'm going to give you a copy of this. It starts with a presentation. You can, you can use this, you can modify it, you can make your own and just be inspired by this. But you have to actually have a sales process on the buy side. So gone are the days where your, your process is getting in front of a buyer at a house, and you're, they're just gonna, you're gonna befriend them and they're gonna want to do business with you. You're going to put your actual value proposition in a presentation and you're going to get them to literally sign. You have a buyer packet and they're going to sign a buyer listing agreement, essentially where they're going to be loyal to you before you go out and spend A lot of effort. So this is a presentation. I had a less glitzy version of this presentation when I was a new agent. But I would sign over 9 out of 10 buyers that I would meet. So not every buyer would agree to meet with me before showing a home, you know, but I would get really good at why it was in their best interest to do that. So, you know, why. Why would you choose our company? So, you know, Larry, I appreciate you guys sitting down, you know, for a minute. Before we get out and look at homes, we're definitely going to look at those few homes that. That you wanted to look at. Our state requires that we go over agency and how we work with buyers, and that's literally the intro. So I've just put together a presentation that kind of outlines that. This will take, you know, maybe 12 to 15 minutes, and then we'll have some time for questions. So here's. Here's why you'd consider allowing us to help you. You know, and you just kind of do that. You know, in our business, we do. Our intention is to serve you in a way that goes above and beyond the average agents that are out there. And we call it the, you know, we have a promise and a document. I'll show you guys that in a second. And when you work with us, there's a few things that you get. We'll negotiate a home warranty on your behalf. You can cancel the buyer to loyalty agreement. Any agreement we make with you, you can cancel it if we're not doing a good job, and if you're not happy with your home, we'll sell it within 24 months, which is pretty awesome. So here's the process that we use to help you get from sitting down today into the home that works best for your clients. And we've got a team of folks that help us. If you don't have a team, you can put lenders in here, you can put inspectors in here, you can modify it. There are seven distinct steps that we'll go through. It's a proven, repeatable process. And you're kind of just walking through this. Number one, you know, we're going to figure out really what's in your best interest, what are your needs, what's going on the market, what's going on with your financial strategy in terms of paying for the property, cash or a loan, selecting the right home, negotiating your terms, protecting your investment, closing on the home. And then ultimately, my goal is to become a lifetime resource for you guys. And then we have a buyer survey that they fill out. Actually we would run these virtual, we'd have all of this recorded. I can send you guys a sample. And then we would make them fill out a buyer survey while they're sitting in the consultation room. All of the consultations happened in the office and then we just go through it. I'm not going to go through all of this. But you know, you want to make sure that you align with an agent that's going to give you the right advice. You want to make sure that your financial strategy is in place before you do any of this work. We want to come in as close as we can to a cash ready buyer. If you're getting finance, you want to be fully pre qualified and then we're going to get you access to all the homes in your area before even other agents do. There are different types of properties you'll see out there for sale by owners. New home construction. We can help you handle all of those. This is key, guys. They will go out and go to a FSBO or go to a builder and they were, they will forget that they signed an agreement with you. So you're preempting that and saying, hey, listen, the last thing you want to do is go to a FSBO or to go to a builder and they're going to take advantage of you. They're happy to work with agents, right? You're sure you're just preempting that. It doesn't happen all the time, but it happens enough times. If you do enough transactions where you want to get away from it, then in terms of making an offer, this is really where we get, you know, technical. I'm a, I'm an expert negotiator and I'll help you work through that part of it. And then there's due diligence, right? So you know, we're going to get you under contract, but then we want to make sure that the home is what they say it is. The home inspection, the appraisal, clear close from the lender and then the closing process, what that looks like, you know, who will be a closing, what will you need. And then ultimately it's about being your lifetime resource. And you know, do you see how all of these things I just, just went through with you will help you get the right home for the best price with the lease hassles. And then we actually had a one page visual that was pretty good that I can share with you guys as well. So let's put a win win agreement in place and let's Start the process today. And then you literally go to this, just as you would a listing, and you would open up your buyer packet and you would say, okay, so there's a few documents that we want to have you review. First ones, our buyer loyalty agreement. Any questions on this? I don't care what it looks like. I don't care if you rebranded. I don't care if you use most of this. Change out your words. You must have a buyer presentation. Who here is not going to do a buyer presentation? Raise your hand. All right. 100% buyer. That's amazing. All right, and here's the thing. Having an actual sales process, ultimately, if you can grow and scale your business from a systems perspective, like having an actual buyer system allows you to scale. Maybe you can scale out of working with buyers and just focus on listings. And you can have a couple buyer agents take over your buyers and they can run this system. The reason why agents don't scale is that they're the one trick, not one trick pony. What's the expression? They show up and do magic. Like, it's like, I'm a strong enough agent. I can convince a buyer at a home to work with me because I've done it for many years. But it's not scalable and it's not repeatable. And so I just think you're going to struggle with that sort of mindset. So let me show you. Let me show you the SO buyer packets. You will literally, just like you have listing packets, more likely have listing packets. If you're running out the door to take a listing, you should have, and I'll show you what they look like here in a second. A stack of listing packets. So you can just run out the door and you have everything you need to list a property. You need the same thing on the buyer side. So you show up, you give this presentation, you open up your buyer packet and everything you need in there to look like a professional and list your buyers. The most important thing, this is the first thing you'll go over. So, Christian, this is how we work with buyers. As your buyer specialist, we're going to do all of this stuff. And you summarize this. We're going to get you the best financing. We're going to give you updates on what's going on in the market. We're going to. We're going to allow for private showings on all of the properties, distressed sales, new construction, even for sale by owners. We're going to discuss the best strategy for making an offer. All the Terms, all that stuff. We're going to prepare the offer. You know, we're going to negotiate in your favor. Like I said, I'm an expert in that area. We're going to give you competent affiliates and we're going to be available to answer any questions that you have. And the three bonuses, like I said, you're going to get these three bonuses. And you know, we get paid via a successful transaction and our commission is three or three and a half percent, whatever you decide it is, of the purchase price, minimum of $5,000. Also at closing, there's a $795 transaction fee. That's to handle the internal processing of your transaction. And like I said, remember that we can get you into for sale by owners and builder closeouts, new construction as well. So. So if you guys would go ahead and just sign here, both of you, and just date this document. It's literally as complicated as it is. Half of the people will be totally okay. They won't even ask about the transaction fee. They won't ask about the percentage or if there's a commission deficiency. Half of the other half will say, what's the transaction fee? I've, I've purchased home before. I don't ever remember paying that. And then you have to explain it. And we actually have a separate document that explains it. But for most of my journey, I didn't. I would just say, I know what you're thinking. You're thinking it's like going to buy a car and it's like some junk underwriting fee. That is not what this is. I've got a team that handles the contract to closing portion of the transaction. And this is to make sure that, that, that part of the transaction goes smoothly. Sounds good. And more than half of the half will move forward. And then there's like 10 to 20% that may be like, ah, I don't know, I don't want to pay that. And then I would just say, why don't we do this? Why don't I write in here that the transaction fee is paid, is only to be paid at the sole discretion of the buyers. If you think we earned it in the contract to closing portion of the transaction, I'll initial it. I'll put two lines and put X's there. Are we good to go? That's the extent of this. And you'll get 90% of people to sign up to work with you. And so the presentation and this one page is pretty much all you need. Any questions on that? I know, I went through that quickly. But I want to. I want to go through the commission deficiency question and then I want to get over to the listing side. Any questions on that? Oh, there are questions or something. All right, let me see here. Yeah, so. So good question. So online we went for a period of time there we went, we recorded these presentations. So we have high quality recordings of these presentations. It's just a voiceover where you're going from slide to slide. You're recording your voice. So on Zoom, you can just record it. And we would send. We framed that out in a Google form. We put the actual buyer survey in the Google form with the video on top. It said, watch this video and then fill out the information. And we would do virtual buyer consultations. And it worked really, really well. It was inspired by Covid and then we just kept it. So you can do anything with this. The whole point is that you want to be able to at least come into the same, like decade as, you know, everyone is for the most part, you know, people are getting people to commit to them before they get to work for them. You know, as an industry, we just not have done. We've not done a good job on that. On the buy side, can we edit? Yeah, so I'll give you. Wait, can we edit our out closing attorney? Yeah, this is editable. So you guys will all have access to this. You just, you just go in and change it. Well, this version is not editable, but you can click. Okay, real quick, because I'm not going to give anyone access to any of these documents. Stacy and I have said this a thousand times. Do not ask for edit access on any of these documents because then you would be editing a document that is my document. Go to file, make a copy entire presentation, rename it to J.R. mcGee, you know, buyer presentation. Make all your edits in there. And then it's just point and click. You click on this and you put your logo in. Right. So this is really. Google Slides is really super friendly. I use Google Slides over Keynote these days. So it's really, really good. And you can, I think on the footer, like you would double click the footer to be able to edit out and put your. Your logo in the, in the bottom. All right. Yeah, all of it's going to be shared. No worries on any of that stuff. Work a lot of time buyers. Yeah. So, Jill. So what I would do, Jill, I don't know if I can find it easily, but what I would do is I would create a Google form where you could record this. You Presenting it, record it, upload a YouTube video. On the top of the form, just say, Jill Lindstrand. You know, what do we call it in here? Give it a name. I know I drive Peterson crazy with some of my wacky names. She's like, can you just call it the regular thing instead of like the smart optimized home buying processor system. So Jill's seven step home buying strategy. Right. And then that will be the title. The video would be underneath it, and then the form would be underneath it, you know, saying, give me your contact information or if you have any questions. And then you can kind of capture that so you can easily, easily create it. Yeah. And I would say, like, Andrew made a good point. Just the simple act of presenting yourself professionally, you know, is the buy side of the business has just become a bunch of door openers. And you just don't want to. You don't want to be that way, especially with, you know, a shift coming and, you know, people are going to take advantage of you just opening doors for them. Yeah. So Paul asked a really good question. So when you, when you sign, when you put in an offer, you sign a state. This is the way we would run it. We would sign the loyalty agreement before we signed our state agreement. So we would operate in good faith off of this one agreement. You probably couldn't take someone to court over it, but it just establishes loyalty. When we put in an offer, we would have them sign the state buyer agency agreement. In that agreement, it gives you the ability to negotiate on your client's behalf. So in negotiations, the seller might come back and say, we're not paying for home warranty and we're countering at 310,000. All you ask, the agent would be fair to say that your sellers would be okay taking 310,495 for the home if we had a home warranty included and be like, yeah, totally fine. You know, so it's. So you have the ability to negotiate that into the deal. So you won't pay for any home warranties. And the market's shifting guys where all of that's coming back. I forget who it was. I was on the phone with somebody recently and they said, I just got seller to pay closing costs. Like the first time in like two years, the seller was happy to pay closing costs. There was only one offer on the property. You know, it was on the market for three weeks. So all that stuff is coming back, which is just awesome. Yeah. Glenda asked me to increase the. You guys will get access to all this. So I'm not going to spend. Yeah. So hopefully that was helpful. Jessica, what was the verbiage? The second. Okay, so Kevin asked the question the second 50%. So 50% will just agree to this, Right? Let me see if I can zoom here. All right, so this is the way I presented the first time is literally as quick as I'll spend on it, I'll say. All right, Renee, So the way we work is that we're based on Commission. So 3% of the purchase price of the home, we're paid as commission upon a successful sale. There's a $795 transaction fee due at closing only upon successful closing. That's for the internal processing of the transaction. And then any home that you look at for sale by owners, new construction, builder, closeout, bank owned properties, make sure that they know you're working with an agent so we can represent you. Get a, get the best deal on, on those homes as well. Go ahead and sign this document and we'll be good to go. I don't like the transaction fee. I've never heard of that before. I know what you're thinking. You're thinking it's a junk fee. It's not a junk fee. It's. It covers, you know, the contract to closing portion of the transaction so we can make sure that that part of the transaction goes smoothly. You don't really want a salesperson, you know, dotting eyes and crossing T's. That's not our natural skill set. So I have folks that help us with that. And you, you should. If you want to make more money in real estate, you shouldn't be closing out your files. So you should charge 795 or 595 and pay 300 to 500 to a qualified transaction coordinator. All of the time you're in a file, you're not making 500 bucks an hour, which you're all. You're all capable of making. Andrew said, I just got 17,000 in seller concessions on a $400,000 property. That is amazing. Amazing. Yeah. So. Yeah. So Zach asked the question. The people who catch the fine print, do you just lose them as clients if they, they don't want to pay the fee or they just don't want to pay the commission difference. We've had some savvy buyers recently who we've had to change stocks to appease them. Yeah. So you, so you, you make that decision at the time, you're going to have 90% of people north of 80% of people agree to do Business the way you want to do business. You want to do business with loyal clients that know they can't cheat on you, that know you're valuable, that know you're different than other agents that know you charge. You're going to get paid 3% and they're willing to pay a transaction fee. That's your perfect scenario. And then you have the ability. And I'll show you our marketing fee menu on the listing side. That'll increase by a full percentage point what you get, because you're starting with the way you want to do it. And then you're a salesperson, right? You get to make the decision, usually in your sole discretion if you're going to come off what you want. So you always have that ability. One missing document here, and then I'm going to go to the seller side. Oh, this is just super cool. I got to show you guys this. I did not come up with this. I don't know who I stole it from. This is guaranteed, guys, to make you money. Can everyone see the screen here? The children's buyer agreement and the children's listing agreement. If your clients have children. Stacy, do you remember who we stole this from? I have no idea. Anyway, it's totally stolen, so I'm not. If anyone comes back and they're like, I made that up in 1997. I didn't make it. But it works amazingly well with anyone with kids, Even, like under 15 years of age, they get to agree and sign this agreement for themselves. That they're going to be polite and quiet while mom and dad make a decision. They're not going to touch crap in the houses that we look at, and they're going to pick out their new room. And when they do that, only like if the agent and the miniature client agree at closing, you'll get a $20 gift card to wherever you want. And this is like a referral generator. I promise, if all you guys do from this call is use the children buyer and the children's listing agreement. And it just makes it fun. All right, so let me. Let me show you one more thing, and then I gotta hustle over to the seller side. Where is the. Here's another document I'll share with you guys. If Zachary, to your point, this was only created to legitimize what the. What the transaction fee is, is for. So. And this may be enough to get all of the super high C, you know, personalities over the hump. And you got to have a little bit of confidence around how you present this. Most of 80% of people are going to be fine with it. But you get to just explain what this extra fee is for. And you could take this language or you can adjust it, you can make it your own, but this is just another document that further explains what that fee is. I had no problem getting it. It was a one liner in the listing agreement and a one liar in the buyer loyalty agreement. But it's mostly mindset. You're going to freak yourself out. Same way that I crossed it out for the first 10 times. I literally, I was like, I can't do this. Everyone's going to say no to it. So I'm just going to say, you know, Eric, you look like a really nice guy and I think it just benefit you if I'm going to give you the, all the benefits of the transaction fee. But I'm going to go ahead and just give you, give you this one on me. And I did that for 10 times just so I could say transaction fee out loud in front of a client. And I'm like, all right, for the next 10, I'm going to go for it. I'm just going to ask for it. And then it was game over. 2 95, 3 95, 495. Because you guys should be getting transaction coordinators involved. Let me make sure that I can. Where the heck is offer summary sheet? Let me just Google it. Offer summary sheet. For some reason it's not in the file here. All right, so this is the missing link. And guys, you can always decide that you're going to take what's in the mls. It's just, to me, it's not a smart way to run a business that you're just going to, you're going to kind of do what, what a listing agent has decided you're worth. And I think it's going to be pretty soon that you're going to have to. There is no co op and you're going to have to already have negotiated what you get paid. So this is when the moment of truth to write an offer on a property is. So the intention here is to get the details for the offer, but to also let them know that, you know, you've got your file there. They've signed the loyalty agreement. There's offering 2.5%, you charge 3%. So, you know, Larry, on this property they're offering 2.5%. That's the good news is that, you know, Most of my 3% is covered, but there is the deficiency. And we're going to ask the seller to Pay it on your behalf. In addition to the transaction fee, which is 795, are there any other closing costs that you think you'd have the seller pay? No. Okay, so we're going to take the 1500 plus the 1795. That's 20, whatever, 2295. That's going to be the. Let's just round it up to 2,300. That's the total closing costs. We are going to get that home warranty for you. And is there anything additional that you want to include in the offer? Nope. All right, good to go. This is the missing piece that you guys have to be just comfortable, you know, saying that they agreed to pay you 3%. You said. And one thing you can say on that, on that one pager, this one pager is. I think it actually says it in here. So 3% home you buy. Commissions are paid by the seller, negotiated as part of the purchase agreement. You're giving us permission to ask the seller to pay our commission on your behalf. If there's a commission deficiency and the seller is not willing to make a difference, you'll be responsible for the shortfall. So. And I wouldn't spend a lot of time. I'm probably not as little as I spent with you guys, but I would go through, you know, if there's any deficiency, we just ask the seller to pay for it. And then you literally just move on to transaction fee. And then you literally just move on. You go over all that stuff pretty quickly. Not with the intention to get them to sign something they don't understand. But this is the way that you do business. And your high C, people will read it and they'll ask you questions about it and just answer the questions and then make a decision if you want to go out of bounds on how you do business. All right, let me get over to. Let me see if there's any other questions here. I have agents on my team get. Yeah, so Andrew says, I have agents on my team get sellers to pay for the commission deficiency and the transaction fee on a $250,000 here. Yeah, it's not. It just feels. If this feels like if this triggers you in a way and you start to get a little clammy and, like, nervous about it. It's not because this is not normal in business. It's only because you've probably been in the industry long enough where you've just accepted, you know, the fact that there are. It's normal to do a 50, 50 CO broke. It's normal that there aren't transaction fees. Right. But our industry in three to five years is not even going to look the same as it does now. Right. So nothing's going to be normal. Got a lot of people. Yeah. So Catherine makes a good point. And I don't know what states that would be. I know in most states, so I will say this. I know in most states you meet with your buyer before. So this could be totally California thing. And that's a really good point. So you guys need to make sure all this is legit in California. We have people in California charging transaction fees. My understanding you guys know better than I would is that it's additional commission. You can't call it a transaction fee. So literally when you're presenting, it's, you know, we get paid this commission and we get paid an additional commission of 795 or we adjust our percentage to account for it. But there are ways. There's no price fixing is my point. The overarching strategy here, or mindset is that there's no price fixing. Yeah, Mike, I'll post these documents. Let me see if there's. Yeah. What would you do if the seller won't make up the difference? So you just have a decision to make. You can. The buyer pays for it. I've had buyers pay for it on $500,000 homes. They pay a 0.5%. They pay an additional $2,500. I was okay with it because I know that I'm worth what I charge. You just have to mentally wrap your head around, are you worth what you charge? If you're going out and showing homes and just like hoping to generate buyers and you have no process and no value proposition, and it's not a step by step process and you're not presenting yourself professionally, you would definitely think you're not worth 1% on some of these transactions. You do a $700,000 transaction and you get 2% cobra, you're like $14,000. Are you kidding me? You know, I just get paid 14 versus like no. When I work with buyers, I get paid, you know, 3%. It's just the way that it is. You know, you could always come off it, but it's more of a mindset than anything else. 475, page 30. Yeah. So WIC. So in terms of getting paid that commission, it would just be on the, on the disclosure statement, whatever you guys call that in your state, and it would be paid. Attorneys can confuse that. So you need to let them know that, you know, when you negotiated those Additional closing costs. You need to let the attorney know that those closing costs go to pay a commission deficiency and a transaction fee and just show them the buyer loyalty agreement. And you know, it's, it's not a problem. When you try to just hope it works out and you're not forthright with it and you don't have that buyer offer summary sheet, then it does get squirrely and it could, it could, it could blow up in your face if you don't handle it the right way. All right, so Pozzi Eva's question. Implementing the buyer loyalty agreement and transaction fee was a game changer five years ago. 90% of. So 90% of people don't even question the fee as long as you demonstrate the value. Other 10% get on board also. Yeah, so the 50, 50 example is probably being. Yeah, so you just call it different things and just go, go to your broker and ask them, hey, I'm going to charge an additional fee. What do I have to call it to be legal? And if they say they've never heard of it, just show them what it is. Show them these documents and say, I'm going to start charging this because I'm going to start paying a transaction coordinator. And what do I need to call it to not get in trouble. And if you have like a crusty old broker, they may be like, oh, that's not how we do things. But they can't tell you what you can do. Generally, how do you go about asking the seller to pay the additional commission transaction fee? So, Brian, you must have just missed this here. You're just asking for it in seller paid concessions. So you calculate the deficiency here in front of your buyers, you put in the transaction fee and you say, in addition to these two fees, or are there any other closing costs that you want to have the seller pay on your behalf? And that's it. Nope. All right, so we're going to do 2295 and then, then you're responsible for negotiating in your fees. And guys, when it goes to 100%, you need to negotiate all your fees. And there's no co brokes. I promise you're going to be happy that you wrapped your head around this. So this is like an existential. I think everyone uses that word a lot. This is like an existential threat to you as a buyer agent if you don't do this. I truly believe it. I just so happened to learn it in 2007. But as we speak, this is like an actual threat to you being able to get paid on the buyer side and just work for free. And then you'll have that awkward conversation at closing, like, oh, there's no buyer co op. Like, do you guys want to pay me anything? Like, no, I mean, it'd be better if I didn't pay you. So I have to pay you out of my pocket. It's like, yeah, that doesn't sound good. And so I think you have to be able to navigate these conversations. And I'm going to pull an audible, I'm going to go a little bit deeper on the buyer side. And then in October, we're going to do the listing side. And the listing side is 10 times better than the buyer side. So that is like the carrot to get you guys all to show up to that one. So let's keep asking questions on this, and I'll go through and see if there. Stacy, is there anything else that I left out of the buyer side that is super helpful? The types of turbulence. Let me show that. I think that's a really good one. So who's ever had a transaction. Raise your hand if you've ever had a transaction that had, like, a lot of turbulence. You have not done a trend. Larry, raise your hand. J.R. raise your hand. Yeah. You have not done transactions. If so, this is really a valuable document. And we'll share it in your buyer packet, really on both sides. And I'll show you the buyer cancellation guarantee here in a second as well. So this is part of the buyer packet where you are essentially just preempting, like, there's all these things that can go wrong, and we just have to be aware of them. My job is to we're going to take off. This plane is taken off today. We're going to commit to work with each other, and we're going to land this plane and you guys are going to move into your home in between. Chances are we're going to hit a little bit of turbulence. And so just know that all these things could happen. My job is to navigate. I'm the pilot. I'm going to navigate this turbulence on your behalf and get you to successfully close on this home and to be able to not hopefully throw up because the turbulence is too much for you guys to to stomach. And it sort of just sets the stage for, you know, not everything's going to go smoothly. So don't get all pissed off if, like, the seller doesn't agree to pay for a drippy faucet, you know, like, it's going to happen or it might not happen. Right. Don't freak out if, you know, have these conversations preemptively. So you don't have that client that thinks everything is an emergency. And now they're all out of bounds. They're texting you like the, you know, inspection report came five o' clock on a Friday and, and they're wanting to talk to you on a Friday night. Say, like, the inspection report is going to come back. It's going to have a million things on it that like, need to be fixed. Most of them don't. This home is in really good shape. You guys can see it. So we're just going to read through it. We're going to make our decision. You know, you can have conversations ahead of time with folks to kind of preempt some of this stuff. Let me show you the cancellation guarantee on both sides, buyer side and listing side. I've always had cancellation guarantees. So, Jennifer, if I'm not doing a good job for you, you know, you can literally rip up the agreement. You know, I'm going to go to work for you. But in return, I need your loyalty. Like, I'm just not going to go to work for 10 buyers and hope they all close with me, which is how a typical agent works. I'm going to work for one or two buyers, but I'm going to do a really good job for you. So with me, your, your agreement is risk free and the pledge is to, to deliver and work my butt off for you guys. And if I don't, you can cancel this agreement prior to submitting an offer. No, no. And nobody does it, guys. Nobody cancels these agreements. I had a guy, one guy, want to cancel a buy, like a legal North Carolina buyer agency agreement, and he just rubbed me the wrong way, guys. I made him pay me $2,000 to cancel it. I was already not going to work with it. I'm like, yeah, pay me $2,000. He's like, Are you allowed to do that? I don't know. Just make it out to my brokerage and send over a check and I will cancel this agreement. And because he was just slimy and he paid it. So that made me feel a little bit better. Not my proudest moment. I was not in a good headspace when I did that. But I knew I wouldn't go to jail for it. I wouldn't go to buyer jail. So what else, Peterson? The promise is unbelievably powerful. I'll share this with you guys as well. The way to crush, crush it in business. And let me show you a bit better Version of this is to, to provide a level of service that is like undeniably referral worthy. So we do this promise on both sides where and we have them sign it, you know, and this is a business generator, so this is a whole training in and of itself. But since it's in the buyer packet, I'll go through it and I do not want to shortcut the listing side. The listing side is going to be awesome, but let's just make that a standalone training, you know. So, Jason, our job is to provide an experience working with us that you could not imagine being better. The team and all of my resources, you know, if you don't have a team team, it's like my lenders, my inspectors, my attorneys, we're all going to focus on giving you a Ritz Carlton experience. You know, our systems, everything we do is designed around delivering on this promise. We're focusing on your wants and your needs, not like every other agent out there. A lot of agents are looking for a commission check. We're going to look out for your needs. We're going to make every effort we can to be in front of the stuff that'll hit the fan, prevent surprises and make the process as hassle free as it can be. And that's our promise. In return, we need your help. So this is where you're getting business ahead of time. This is where every client turns into two more clients. This is the virtuous cycle of creating business. Just by doing good job for every client, you should be able to turn every client into at least one other client. So instead of paying more for a lead gen, you just do a better job with a systems driven approach to service. But we need your help. Right Kevin? So sometime between now and the day we close on your house, you're going to send us the name of somebody that needs help in real estate. You know, if this doesn't happen and I just need maybe a three way text or text me their name, their email address and their cell phone number and let them know that I'm going to be calling them. That's, that's somebody that's ready to transact in the next three to six months if we, if you don't do this, I will know that I didn't deliver on this promise and I'm going to want to talk to you about it. So either I deliver on the promise and you, you feel really comfortable telling your friends about me, or I don't and I'm going to want to make it right. Is that fair and Kevin will say, yeah, it's totally fair. All right, so let's go ahead and just agree that that's, that's the intent that we have going into this relationship. And. And off we go. And again, no other agent is doing this. This was from. What the heck is his name? He's in Idaho. He's a KW agent. There's a recorded video on it. We, we made this document, but it's based on. Some of. You guys know his name? I can't remember his name. But again, this. The concept was swiped from this guy. He's in Idaho from kw. But we just systemized it and memorialized it where it's now part of the process. So if you have agents on your team, they cannot sign a buyer or seller without getting the promise signed. And we have a checklist for every folder to make sure that it gets signed. So this is gold. And then here's the thing. This is how I work. This is why Stacy and I are good business partners. Stacy's approach, which is totally correct, she would make sure the Ritz Carlton process is in place so that when she got people to sign the promise, she would feel really comfortable that there was an actual good process. I did the opposite, which is the way I do everything, and it creates a lot of havoc, but it's going to force you to get better. I make the promise and then I just see what happens. And then we do a net promoter survey and it's like they give us a 3 out of 10. It's like your promise was a complete sham. It sucked. Like, it felt like I was driving the plane. Like, forget the turbulence. Like, you weren't even the pilot. It's like, okay, so let's figure out how to plug the holes in the system. So it is a world class experience. Stacy's way is way better. Thoughtfully think through your process. Think around, like, the touch points and the gifts you can send out and the calls you can make systematically at the most important, you know, and this is where business gets really fun. When you guys are thinking about how can I deliver, you know, service to a client in such a way where they're going to send me five more clients? It would totally reframe how you think about business. And you guys will be the only ones that are still in business in the future because every other agent is still paying for Zillow leads, or they're paying 35 or 50% to Home Smart or whatever next company that's going to get in between you and another client. This allows you Guys to get clients without having to pay a third party to generate them for you. All right, any questions on that? Does these increase fee amounts become part of the whole commission split with your brokerage? Yeah, I don't know how some brokerages handle their transaction fee. Some handle it as additional commission and they'll take a split from it and some don't. The job is to make you guys all like Mega Super 10 10x over capping agents anyway where just gets you to your cap quicker and more money. It's like, oh man, I had to pay so much in taxes this year. It's like boo hoo. You know what that means? It means you made a lot of money. So it's like, oh man, I hit my cap quicker. It's like, well that's good. You know you want to hit your cap quicker so you can go 100%. All right. Any other. Yeah, some of these documents guys will just change the game completely. My kicks. That's it. Yep. Just curious how many came back and wanted household for free? Yeah, none. I mean there was like actually there was one where I actually did it because it was a divorce and it was a, it was a really bad situation and I don't even think I even had some people ask that question like what's the, what's the terms and conditions of that in hundreds of times of giving that guarantee. One time I sold a home for free and it was honestly just the right thing to do. It was once or twice. There was one where a lady bought a home in a neighborhood that she does. I didn't realize it was a crap neighborhood. There was like a shooting in the neighborhood. Just like I am moving out and I'm like, I think that one. She bought another home with me. So that was one of my conditions is that you have to buy another home with me. So I'll make, I'll get a commission on that side but I'll sell your home for free. But yeah, nobody takes you up on it. It just gives them. It's like, man, you would do that if I just bought the wrong home. You would actually guarantee it. It's like, yeah, I would do that. The worst case is that you're selling a home for free but you're going to get another referral anyway from that. So it's really, really, there's no losing it. And a lot of times we psych ourselves out. This is really good too. A lot of times we just psych ourselves out because it's different to us. But just think of like how many times you spent money on stuff and the sales process that you were taken through. You know, like, some are good sales processes, some are not good sales processes. You know, I bought new cars, I bought used cars, I bought from auction. And like I bought a car from auction, it was cheaper, but it was completely dirty, wasn't cleaned, engine light was on, you know, but I got a discount on it versus like, you know, actually getting it ready for sale. And you can charge 25% more. Right. So you just have to decide where, where you want to play in the game. And it's my fundamental belief that if you're going to chase everything to the bottom, once this co op delinks on the buyer side, it's going to. There will be agents out there. There are agents in my market that offer. Apparently it's legal in my market to offer rebates that will offer a 2% rebate on the buy side when they're getting 3%. So they want to get paid 1%. And I'm like, you do that on every transaction. They're like, yeah, every transaction. I'm like, golly, that sounds awful. And they get a lot of business. So they have to sell three times as many homes because they're only making a third as much commission. So are they busy all the time? They are busy all the time. They're busy all the time with people that don't value real estate agents and think that they're not worth much. So it's definitely a mindset game. How's the co op paid? If the seller isn't paying anything in the event you had to sell one for free, how is the co op paid? Yeah, so same situation, you get paid on the buy side, so you would still present the buyer loyalty agreement and you would still get paid on the buy side. And guys, worst case, you'll get 10 times more business offering some of these cancellation guarantees and some of the satisfaction guarantees. Then you will having to. What if you legitimately had to for free help a seller because they had a divorce and they're both moving out of the market and you said, hey guys, listen, I understand you're getting divorced. I'll sell this house for free. Let me refer you to two amazing agents in the two states you're moving to just to recoup some of my costs, Would you let me do that? These are real people. It's real conversations, you know, and you just say, normally I do it when they're staying in, in town so I can earn a commission on the on the purchase because they're buying the wrong home. But I'm going to do this for you guys. Just let me refer this business out and I'll find you a great agent. I'll interview, you know, three agents in both your markets. Right. So there's definitely ways through it. Yeah. So Glenda made the comment, this is definitely something. We'll give you all the tools around it. I normally let's stuff it all down their throat and I would try to fit the seller part into this as well. So I'm glad that I actually caught myself because there's going to be a lot of goodness in here. So this is another prop in the buyer packet and listing packet. This is a trifold, like a third of a piece of paper. On one side it just says, we're growing our business, we need your help. On the back it says, do you know someone that needs help buying or selling? And you know, we actually, you know, can you guys think of any right now? So there's actually spots on here to remind you to always be asking for referrals. It's little props like these, the children's buyer's agreement, this document, the high performance promise that will just elevate your game over time. And you, you know, you're not even going to be like in the same league as any agent trying to. Because this is, this stuff is not taught anywhere. Certainly when you get your license, you don't know any of this stuff. It's, it's crazy. Buyer survey. The buyer survey. If you're going to do a virtual consultation, we would even have people come into the office, buyers, we would play the video and we would give them a printout of this and say, watch this 12 minute video, fill out the buyer survey and I'll be back in 15 minutes. The video is 12 minutes. It'll take about three minutes to fill this out. And you could do something, check your email while they're going through the consultation. That's one thing. None of this stuff. It's only your imagination that will limit your ability to do business the way that you want in the future. And I think that's the coolest part of this. You guys all run your business and as long as you're not granted, we don't want you doing something in your state that gets you thrown in real estate jail. But we want you thinking about your business as you're different than other people. And nobody even asks us this. Like nobody has a thoughtful. Like before we get to work together, you know, let me make sure that we really understand what you're after here. So if you take a few minutes together to thoughtfully fill out this new buyer survey will make sure that we really do a great job for you. And they're already in watching the video. They're already going through a new buyer survey. Any questions on the video? You sit down, you open up your buyer packet. So if you guys are cool with it, let's just get to work. Let's put a loyalty agreement in place so I can get to work for you guys. So it's like you're in the game of getting people to become clients of. Of yours before you're going to work for them. And then this allows you to scale. If you ever want to scale, this allows you to scale. Because now you have people coming into your world, you know, that can pick up these systems and run with them. And all you. All you need to do is make sure they follow the system and they can watch you do it, you know, five times. Or you can record yourself doing it and you're off to the races. All right, my friends. Crap it. We're out of time. Hopefully this was helpful. We will probably. I don't know which one, but we'll. We'll do the listing side of this listing version of this. I'll figure out how to easily make all these documents available. I'll post them in the respective groups in a Google Drive folder. So much love, guys. Much respect. And we'll talk to you guys soon. Be good. Appreciate.