On
this week's episode of Real Estate Insiders Unfiltered, California agent Chris
Cragnotti shares his experience working with sellers who chose not to include
an offer of compensation in the MLS, 10 months before it was required. He
describes the conversations he's had with clients, the responses of buyer
agents and how the deals went down.
See why eliminating upfront offers of comp is 'nothing to
be afraid of': Many agents are just starting to talk with clients
about industry rule changes, but Cragnotti has been doing it since November.
After the
Sitzer/Burnett verdict was announced, "we knew what the DOJ
wanted," he said.
So how did sellers react? His first conversation was
"super easy." Transparency and education have been key.
"I realized that I had a fiduciary obligation to
explain to my sellers that this pathway existed, that not only do they not have
to offer compensation, but the buyer can can now ask them in the purchase
agreement. And I explained to every one of my sellers, you're very likely going
to be asked to pay compensation, and I think it's a great insurance policy.
They should have their own representative. It protects you, it protects me.
It's better and it's worth your money to do it. You can still say no. You'll be
able to negotiate it."
Were buyers (or their agents) scared away? Removing
an offer of compensation has not impacted Cragnotti's business or his sellers.
All of his recent listings have sold — many for above asking — and the change,
he said, has ultimately been "a big nothing."
"What I think all the other agents gleaned from the
experience was that, oh, it's just an extra a piece of paper we have to do.
It's a conversation I have to have with my buyers now, a conversation we
probably should have been having all along anyway. But at the end of the day,
you know, it's just really easy and it will become easier."
No comments:
Post a Comment