2024 Seller Representation

Buyer Agent Training
Role Play Training

Unpack the impact for sellers. 

In line with eXp’s core value of transparency, we’ve ​created a clear and concise approach for the consumer. ​This will enable you to deliver top-notch service and set ​a new standard in the industry. Start here to navigate ​these changes effectively. 




More info and updates at https://exptoolkit.com/sellers

1

2

3

4

5

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

YOU MUST REDISCLOSE YOUR LISTING AGREEMENT

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

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

There are 3 ways to pay 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 PAY A BUYER'S AGENT

YOU CHOOSE:  USE TXR FORMS OR  EXP TX FORMS

HOW TO MARKET YOUR PROPERTY

Here's what you CAN'T DO!!!!!!

DON'T PUT ANYTHING ABOUT COMMISSION IN MLS ANYWHERE!!!!!!!!!!!!!!!!!!!!!!

Creative, but even this is a no go.....

@TylerPolk from eXp mowed this in his grass at his house as a joke and it's now a meme

Whatever you are going to advertise, get it in writing on TXR Form 1417 from the seller. Your fiduciary duty to your client is to negotiate on their behalf.  

PRO TIP: DON'T ADVERTISE A SET %, BUT INSTEAD USE THIS SUGGESTED MARKETING LANGUAGE TO ENCOURAGE NEGOTIATIONS:

"Seller is willing to consider compensation directly to a Buyer’s Broker. All terms are negotiable. Please fill out and submit the Texas Realtors Form 2406 Addendum Regarding Broker’s Fees with your offer."

WHERE YOU CAN ADVERTISE



PRO NEGOTIATING TIPS:


The ideal process for this is NOT to get hung up on the %, but instead respond with "How much do you need?"

The text message on the left is an actual conversation and the best way to handle this!

By asking "How much do you need?" the agent can then ask for what's needed to cover the compensation agreed with their client.

If you advertise a % number, it may be more than what's in their agreement, and now your seller is just giving away money. 

If they only agreed to 2% in their buyer rep and you say 3%, then the saavy agent is going to ask for the full 3 and then get a credit to their buyer for the additional 1% over what they can get paid per their rep agreement.

PAPERWORK: New Listing ON OR AFTER June 24, 2024

Listing Agreement Forms:            VIEW SAMPLE PACKAGE PDF

****VIOLATION $ WARNING: DO NOT PUT THIS TEXT IN MLS!!!!! THIS IS FOR EXTERNAL MARKETING ONLY***

"Seller is willing to consider compensation directly to a Buyer’s Broker. All terms are negotiable. Please fill out and submit the Texas Realtors Form 2406 Addendum Regarding Broker’s Fees with your offer."



2024 SPECIAL ADDENDUMS AS NEEDED

TXR-1403 (6/24/24) - Exclusive Agency Addendum to Listing


TXR-1402 (6/24/24) - Named Exclusions Addendum to Listing 


PAPERWORK: Existing Listing PRIOR TO June 24, 2024 

(NOT UNDER CONTRACT BY JULY 30, 2024)

Listing Appointment Forms:            VIEW SAMPLE PACKAGE PDF

(NOTE: We are paying 0% to the other brokerage. Tip: hit the space bar so you can type in the 0 in the blank to be explicit that we are not paying the buyer's agent brokerage.)

****VIOLATION $ WARNING: DO NOT PUT THIS TEXT IN MLS!!!!! THIS IS FOR EXTERNAL MARKETING ONLY***

"Seller is willing to consider compensation directly to a Buyer’s Broker. All terms are negotiable. Please fill out and submit the Texas Realtors Form 2406 Addendum Regarding Broker’s Fees with your offer."


PAPERWORK: Existing Listing 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!

How do we set up the listing agreement to handle unrepresented buyers?

Use the new version of the Texas Realtors Listing Agreement ere is an example of how to fill it out properly. You can choose the numbers to go in B. This is only an example.  B.(1)(a) defines how you will get paid for selling the home. B.(1)(b) defines how you can get paid for facilitating an unrepresented buyer. (Not intermediary)


Here is language to add to the TXR-1101 Listing Agreement B(1)(a) if you want to charge an additional 1% fee for facilitating an unrepresented buyer. (% is negotiable. This is an example)


"1% additional fee when facilitating a transaction with an unrepresented buyer"

TXR-1101 LISTING AGREEMENT

TXR-1404 AMENDMENT TO LISTING

GIVE IABS, CPN & FORM TXR-1417 TO UNREPRESENTED BUYERS


IT CAN BE DONE WITH TOTALLY UNREPRESENTED BUYERS

BE CAREFUL NOT TO CROSS THE LINE INTO ADVICE/OPINIONS

What happens to unrepresented buyers who want to make an offer on my listing?

You do not want to represent the buyer. The seller hired you for you to give them advice and opinions. You cannot ethically represent both parties and give advice and opinions to both. Read this: https://www.trec.texas.gov/article/intermediary-%E2%80%93-did-you-know  "Intermediary" is only if you are representing the buyer AND the seller following TX Agency laws. In this conversation, we are talking about totally unrepresented buyers.

You CAN represent your seller and still facilitate a transaction with an unrepresented buyer. For example, you can get on a Zoom call and tell the buyer “I do not represent you and I cannot give you advice or opinions. I can help you complete the forms based on your instructions without any advice. I will then present the offer to my seller client.”

PRO TIP: Now that we may be seeing unrepresented buyers, it would be advisable for your seller to use the TREC Seller’s Disclosure instead of the Texas Realtors Seller's Disclosure. The reason is that the Texas Realtor’s Seller’s Disclosure requires that you furnish any inspections you receive. However, if you receive an inspection report, then you and the seller have been made aware of material facts concerning the condition of the property and are required to disclose on an updated version of the Seller's Disclosure.

Example: You are under contract and receive the full copy of the inspection from the buyer, but the transaction is canceled; using the TXR version, you would now be required to share that inspection with future buyers. 

I have seen the commissions on email flyers. Is that ok?

Yes, you can advertise on text, email, social media, flyers, phone calls, sign riders, signs in the house, signs in the yard, newspapers/magazines, etc. You can even advertise on a single-property website IF it does not have an IDX feed of the properties. It cannot be connected to the MLS at all.  You CANNOT advertise via MLS or hint to it in any way. 

REMEMBER, be careful what you advertise. You never want to give away your seller’s negotiating power. The buyer’s agent may not ask for a full 3% with their offer, but if you advertise a specific percentage, you can bet that the buyer is going to want whatever you offered publicly. That could cost your seller $

Seller is willing to consider compensation to a Buyer’s Broker. All terms are negotiable. Please fill out and submit the Texas Realtors Form 2406 Addendum Regarding Broker’s Fees with your offer.

Use Texas Realtors Form (TXR-1412) to get IN WRITING what the seller allows you to advertise.

I have had the title company email the seller a net sheet. Is that still okay?

There is nothing wrong with that later in the transaction when you are under contract and have the numbers for the actual payoff, etc.

To get to the point of representing the seller, I think going forward in a representation presentation, you have to be able to show how this is going to play out and how the numbers work. You have to be able to demonstrate how the money flows. 

You have to demonstrate your ability to get them through the transaction without financial pitfalls. These conversations are going to have to happen during the buyer rep consult or during the listing consult, and I don’t think you can wait for a title company to work up the numbers.

Do we still need the "eXp Rider To Listing Agreement" form?

That form has been removed by exp, so now, simply add the clause to Special Provisions in the Listing Agreement to allow for eXp eXclusives

Seller authorizes and instructs Broker to advertise and promote the Property on eXp Exclusives (https://exclusives.exprealty.com/), Broker’s global listing network.


When you say “market” - how are we allowed to market ACTUAL seller concessions now? (NOT TO BE USED FOR BROKER COMP)


In the NTREIS MLS Input forms:

For a SALE listing: you’ll see on the FINANCIAL tab “Concessions Y/N”



For a LEASE listing, you’ll see on the APPLICATION/PETS tab “Concessions Y/N”