Realtors - Is it Still Worth Working with Buyers?

Should You Keep Working with Buyers in the Changing Real Estate Market?

With the drastic changes happening in the real estate industry, including buyer agent commissions no longer being posted in the MLS and mandatory buyer’s agency agreements, many agents are left wondering: is it still worth working with buyers? If you’re feeling unsure about these changes, you’re not alone. Mike Ferrante, Team Leader of the 21 Mike Team at Century 21 HomeStar, and Tony Geraci, Broker/Owner of Century 21 HomeStar, share their insights into why working with buyers is still a valuable and rewarding part of real estate.

Embracing Buyer Agency Agreements: Why It’s a Good Thing

One of the biggest changes in real estate is the requirement for buyer agency agreements. While some agents may be apprehensive about this shift, Mike and Tony see it as a positive development.

As Tony Geraci explains, “Buyer’s agency agreements protect your work and ensure you get compensated for the value you bring to the transaction.” No longer are agents left wondering if their buyers will stick with them or what commission they will receive. Now, you have a contract that outlines exactly how much you will be paid for your services, and you are in control of that amount.

For years, buyer’s agents have complained about the lack of loyalty from buyers. With the new requirement for buyer agreements, those days are over. As Mike Ferrante points out, “You should be cheering right now. Thank God, now I have a contract with my buyer, just like I do with a listing.”

Charging for Your Value

A key component of the buyer’s agency agreement is that it allows you to set your commission upfront. You decide how much your services are worth, and the buyer agrees to that amount. This change empowers buyer’s agents to charge based on the value they bring to the table, whether it’s experience, negotiation skills, or knowledge of the local market.

Tony says, “You can’t be an expert in something without the experience or history, and now that expertise is worth something.” He encourages agents to look at this change as an opportunity to demonstrate their value to buyers.

Negotiating Buyer Agent Compensation: You’re in Control

A common misconception among agents is that if the seller doesn’t offer a specific percentage, they won’t get paid. However, buyer agents are now able to negotiate directly with their buyers to ensure they are compensated. As Mike explains, “You get to decide upfront how much you’re going to get paid. It doesn’t matter if you have greedy listing agents offering a little commission – you are in control of what you charge.”

Tony emphasizes the importance of having these conversations early with your buyers: “If you don’t have a buyer agreement, someone’s going to negotiate your commission right out. Don’t let that happen.”

He further explains that having a solid buyer agreement is crucial because it ensures that someone – whether it’s the buyer, the seller, or a third party – is paying you. You are never left out in the cold.

Handling Negotiations with Listing Agents

With the changes in commission structures, buyer agents may now find themselves having more conversations with listing agents about compensation. Mike shares a recent experience where he successfully negotiated for the seller to cover the buyer agent’s commission, despite an initial lower offer.

Tony also reminds agents that everything is negotiable. Whether it’s commission, price, or other terms of the sale, the key is to be skilled at negotiating and to communicate clearly with both buyers and sellers.

Tony says, “You get to make the choice: Will you make the buyer pay? Will you make the seller pay? It’s all situational, and you’re in control.” The important takeaway here is that you, as a buyer’s agent, should never be afraid to ask for what you’re worth.

Don’t Forget to Ask for Compensation

One of the most common mistakes agents are making right now is forgetting to ask for their compensation in the offer. Mike stresses the importance of including compensation in your offers and using the appropriate forms, especially in Ohio where a separate one-page document clarifies the buyer agent’s compensation request.

“You’re not going to get paid unless you ask for it,” Mike warns, encouraging agents to remember this critical step when submitting offers.

Why Working With Buyers Is Still Worth It

Despite all these changes, Mike and Tony agree that working with buyers is still incredibly rewarding. In fact, it may be better than ever. With buyer agency agreements protecting your work and ensuring compensation, you are no longer at the mercy of the MLS or seller’s generosity. You set the terms and charge what you’re worth.

Tony sums it up perfectly: “Sometimes people say buyer agents aren’t needed, but when the inventory picks up and it’s a buyer’s market again, they’re going to want a buyer agent. It’s impossible to see 30 different houses with 30 different listing agents.”

In the end, buyer agents bring tremendous value to the transaction, and these recent changes only reinforce that. By adjusting to the new rules and using buyer agency agreements to protect your compensation, you can continue to thrive in this changing market.

If you want to discuss the latest changes or get more tips on how to adjust your business to these new real estate regulations, contact Tony Geraci at tonytalk.net or connect with Mike Ferrante and the 21 Mike Team at Century 21 HomeStar.

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