2024 Buyer Representation

Listing Agent Training
Role Play Training

Navigate new waters: What buyers should know.

We’re here to equip you with the expertise to engage in straightforward compensation discussions, enhancing the buyer's experience and establishing you as the go-to experts for buyer satisfaction.


Use the CFG Buyer Presentation

or request a customized one!

for your buyer with the CFG Buyer Advantage Program




Client Signed Pre-June 24 Rep Agreement and Not Under Contract Before July 30th

YOU MUST REDISCLOSE YOUR REPRESENTATION AGREEMENT

Client Signed Pre-June 24 Rep Agreement and ARE Under Contract Before July 30th

NO CHANGES NEEDED - CHECK WITH TITLE TO CONFIRM BAC IS OK

There are 3 ways to be paid as a Buyer’s Agent now. This is not going away. Don’t fight it, just adapt and move forward. 

eXp and other brokerages are moving away from the “Broker to Broker” compensation because that’s where the DOJ is probably headed.

KEEP IT SIMPLE. DON’T OVERCOMPLICATE THIS 

HOW TO GET PAID AS A BUYER'S AGENT

YOU CHOOSE:  USE TXR FORMS OR  EXP TX FORMS

PAPERWORK: Single Property or Single Day Showing


NO PROBLEM - JUST USE THE TXR-1507 Buyer Rep Short Form

BEFORE YOU GO INTO THE HOUSE OR BUILDER OFFICE



PAPERWORK: New Full Representation Agreement ON OR AFTER June 24, 2024

Representation Agreement Forms:            VIEW SAMPLE PACKAGE PDF




PAPERWORK: Existing Rep Agreement PRIOR TO June 24, 2024 

(NOT UNDER CONTRACT BY JULY 30, 2024)

Representation Amendment Forms:            VIEW SAMPLE PACKAGE PDF

(NOTE: We are receiving 0% from the other brokerage.)

Here is an example of how you can word paragraph 7 to cover different types.

7A -  Broker's Fees: When Earned & Payable, Client will pay Broker, 

3% Resale properties, 4% new construction, $750 for properties under $50k purchase price, 100% of 1 month's rent for leases.


PAPERWORK: Existing Rep Agreement PRIOR TO June 24, 2024 

(UNDER CONTRACT BEFORE JULY 30, 2024)

If the listing was taken prior to June 24, 2024, and was under contract prior to the NTREIS change, removing the BAC


ACTION ITEM: Ask the title company if they are willing to disburse based on the MLS printout showing the BAC listed at the time.




In the Texas contracts, be sure to attach the TXR-2406 to the contract by adding it to Paragraph 22: Other

Paragraph 22 of the 1-4 Family, add in "Other: Addendum Regarding Broker's Fees" to ensure that the addendum is attached to the contract.

Then it's signed by buyers and sellers to make it part of the contract!

FAQ's From The Team

I have deal under contract and we put the amount in #12.  Do we need to correct the offer? Seller has agreed to pay 3%.

The contract should be amended to correctly document this. The issue here is that lenders are not 100% stable on whether they approve this or not. Notice the language in 12A(1)(b) says “as allowed by the lender” 

What happens if the lender DOESN’T allow it. That money gets left on the table and you don’t get paid!

Contract Amendment Forms:            VIEW SAMPLE PACKAGE PDF

How do we know which properties are paying seller concessions now?  

When helping a buyer client or leasing client (tenant), you’ll see the Y/N information here at the bottom of the listing detail screen.  


Remember that when you are negotiating an offer, it’s your fiduciary duty to show them all the houses that meet their needs. Sometimes that house may be one that’s not offering concessions publicly, but you can negotiate an offer with the seller that could make it worth their while. 

Do what’s in your client’s best interest and help them find the perfect house. The rest is just a math problem!!!

EVERYTHING IS NEGOTIABLE!  IT'S JUST A MATH PROBLEM!!!

SAMPLE SCRIPT 

Hi Sarah, I’m calling about your listing at 123 Main Street. Did I catch you at a good time?

I am setting up a showing for the home this afternoon and my clients had a few questions.

[SHUT UP AND LET THEM TALK TO SEE WHAT THEY SHARE]

[MAKE NOTES OF ANYTHING THEY SHARE THAT’S IMPORTANT TO THE SELLER]


3. Is the seller offering any assistance to buyers to help cover the cost of the buyer representation? 


How does this impact builder contracts and incentives if we’ve already signed a buyer rep agreement? Can I amend the original buyer representation agreement?

Are Buyer Rep Amendments Allowed??? I checked with eXp Corporate and got this answer, YES, you CAN amend the buyer rep agreement by making changes and initialing on the original one. Just keep in mind that you will be having an uphill battle conversation with a buyer saying, I know we agreed that you would pay me X, but since we are visiting a builder and they are paying more, I want the extra money that this builder is shelling out for myself.

To amend, either:

A) do it right on the original signed form and initial changes or 

B) Use the single property representation agreement form for that builder before showing


Best practice: In your original buyer rep agreement, use language that allows for variable payments for different types. If you discuss these things at the initial appointment, you will be in better shape. You can put a higher number on the agreement and then charge less. You just can’t earn more than the agreed amount.

If you are working across a variety of types break them out. Resale at x, new construction y etc. You absolutely may do that. See example below.

Buyer Broker compensation cannot be open-ended, nor can it be a range.  It must be objectively ascertainable. 

For Example: 

Allowed - “4%”; “$5000”; “3% Resale properties, 4% new construction, and $750 for properties under $50k purchase price”.  

NOT Allowed - “Buyer fee is whatever the Seller is offering”; “Up to $10k”; “1% - 3%; $2500 - $5000.


An example came up, “what if we show the buyer new construction and the builder was paying 3% at the first showing?". Then we go back 2 weeks later and the builder now paying a $5K incentive or 6%.  Can we amend?

“On the go back you absolutely can ammend. Be prepared to negotiate the up-charge with the buyer. Do it prior to showing. Keep in mind this is all new territory and we don’t have any “data” about what will happen if you ammend after the showing. That will likely cause issues, but we don’t know yet.”

If the builder does not already have a buyer-agent commission agreement in their contract, you should get the builder to sign the Direct Compensation from Seller form to ensure that you will receive payment.