RISMedia's Real Estate Magazine

JAN 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/918036

Contents of this Issue


Page 22 of 110

18 January 2018 RISMedia's REAL ESTATE {REBAC Report} TEAM STRUCTURE. When joining a team, an agent typically faces a significantly reduced commission split compared to working indepen- dently. Ideally, that loss in personal share is more than compensated by higher transaction volume. Typically, this is only achievable if a buyer's agent is strongly focused on working leads and can pass buyer cli- ents off to other team members once a buyer is under contract. Encourage agents to look for a team that offers strong transaction support and a system that generates quality leads. COMPENSATION AND LEAD PRO- DUCTION. Buyer's agents work- ing on teams need to place a high priority on generating and work- ing leads—something that comes easier to some agents than others. Often, a mutually supportive team environment provides the discipline needed to consistently and success- fully tackle this part of the job. In terms of additional incentives, some teams offer graduated com- mission splits to help keep buyer's agents motivated. To reduce a buyer rep's reliance on the rest of the team for leads, they may offer a 60-per- cent split on self-generated leads versus 40 percent for leads gener- ated by the team. REPRESENTATION, FROM CON- TRACT TO CLOSING. If an agent's primary focus is on prospecting for new business, showing properties, and writing offers, what happens to their buyers once they're under con- tract and handed off to the transac- tion coordinator, or other administra- tive team member? Property inspections, for example, often disclose issues that require follow-up communications with the listing agent/seller—conversations that can easily become a second round of negotiations. In these cases, how will the buyers be repre- sented? If they've signed a represen- tation agreement with the buyer's agent, what does it say about ser- vices owed at this stage? This is just one example of how buyer representation implies client obligations that may conflict with the way a team divides labor and client support, which is often more focused on the listing side of the business. Make sure the representation agree- ment addresses these issues—and make sure every member of the team understands and delivers ser- vices owed to buyer clients. After all, a team's long-term suc- cess is about more than team struc- ture, compensation and leads; it also relies on its reputation, refer- rals and repeat business. Providing buyers with client-level services from contract to closing is a consideration that goes beyond avoiding com- plaints (or worse). In my opinion, the most effec- tive way to gain a comprehensive understanding of best practices in representing buyers is to take the Accredited Buyer's Represen- tative (ABR®) Designation Course. To view a schedule of current of- ferings, go to training4re.com. To learn more about the benefits of earning the ABR® designation, visit REBAC.net. RE Marc D. Gould is vice president, Business Special- ties, for NAR and executive director of REBAC. A wholly-owned subsidiary of NAR, The Real Estate Buyer's Agent Council (REBAC) is the world's largest association of real estate professionals focusing specifically on representing the real estate buyer. With more than 30,000 active members, REBAC awards the Accredited Buyer's Representa- tive (ABR®) designation to REALTORS® who work directly with buyer-clients. To learn more, visit REBAC.net. 3 Key Considerations for Buyer's Reps Working on Teams by Marc D. Gould M any real estate professionals view the team model as a way to take their transaction volume up a notch, joining the ranks of top producers. Of course, a team's actual success hinges on many factors, including its members, how roles are defined and how performance is rewarded. If you have agents considering joining a team as a buyer specialist, what are some of the most important factors to consider?

Articles in this issue

Links on this page

Archives of this issue

view archives of RISMedia's Real Estate Magazine - JAN 2018