Understand that Buyer Broker Agreement so your client can also.

31 Aug 2024 · 1 min

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1:01

Steve D. Valentine explains how to frame a buyer broker agreement as an investment in representation rather than a charge. He describes his buyer consult process—showing homes, walking clients through a drafted contract with their name and qualifying price, explaining expectations, and then presenting the buyer broker agreement (typically 3–3.5% with sellers contributing 2–3%). His approach reframes fees to make clients comfortable signing.

Chapters

When somebody signs a buyer broker agreement, they are agreeing to invest in representation. You are not charging them. I want you to take the word charge out of your vocabulary because what's the worst thing? So we all ask, how much do you charge? Charge is negative. I always tell people, whether selling or buying, your investment for my representation, in my experience, is X, whether it's three or three and a half percent. So when I meet a client, I'll typically show them up to two homes. Before I do a buyer consult, I will walk them through a contract. The contract is drafted, their name is on it, it's a potential price of what they're qualified for, and I will go through a buyer consult and tell them all the things to expect during this process. And at the end of it, I will simply bring up the buyer broker agreement and I will say there is an investment for my services. Most people think that the seller pays me. The reality is part of the purchase price in the house pays me. What you're paying for the investment for me to represent you is 3.5%. The great news is, is that this seller is going to contribute between 2 and 3% of your investment. So it doesn't cost you as much as you think. And most people at that time are great with signing it.