Buyer's agent commissions are dropping, but we’re not worried.
Today’s topic is a sticky one: buyer’s agent commissions.
If you’ve been in the business for at least two years, you’ve probably noticed that buyer’s agent commissions have been dropping, and they’re under fire again from numerous class-action lawsuits. Some of the most prominent attorneys in the country are representing consumers who think buyer’s agent commissions aren’t fair to sellers. Why should sellers pay for another agent to negotiate against them?
From a consumer standpoint, that’s a fair question. We agents know how well this arrangement works for buyers and sellers, but I understand their argument. What happens if they win these class-action lawsuits, though? There will be even greater downward pressure on buyer’s agent commissions, and they may disappear forever.
“I suggest you start putting together an amazing buyer package.”
Should you be worried about this? Yes, but we at the Mike Quail Home Selling Team aren’t, and there’s one good reason for that: our VIP buyer program. This program grants buyers access to 16 other sources for homes besides the MLS. It provides more than just a guide for showing homes, opening doors, and negotiating deals. With this program, we also tell our buyers up front what our fee is to represent them. We don’t care what’s being offered out because we pre-negotiate our fees with our buyers. They understand these fees and appreciate them.
The point is this: If you’re going to continue as a buyer’s agent, you’ll have to offer a lot more value to your clients besides just showing them homes on the MLS. Otherwise, they’ll just go directly to the listing agent. If there aren’t any fees being offered to buyer’s agents publicly, how will you show your value? I suggest you start putting together an amazing buyer package.
If you don’t want to do all that work on your own, give me a call and I’d be happy to lend a hand. If you have any interest in joining my team or being a solo agent at eXp Realty, feel free to reach out to me as well. I’d love to speak with you.
