How to Use a Buyer Brokerage Agreement

Fair warning: if you are one of the agents in the Facebook comments saying the lawsuits aren't going to change anything and sellers will always pay buyer's agents — this episode is for you the most.

We are not trying to scare you. We are trying to prepare you. Because whether your market requires a buyer brokerage agreement right now or not, you need to understand how it works, how to present it, and how to make it not feel like you're handing someone a 40-page legal document while saying "we've been sued, please sign here."

And yes, there is a bra story. We'll get to it.

Here's what we cover in this episode:

- A quick lawsuit update: where things stand as of early 2024 — Sitzer Burnett verdict, the appeals, the copycat lawsuits (Gibson, Batton One, Batton Two, Burton, March, Que Je Team, Phillips), the NAR CEO's early retirement, new leadership, and the ongoing DOJ investigation that everyone should be watching more than any single lawsuit - Why the DOJ is the biggest disruptor — not the individual lawsuits - Why agents in Facebook comments are still not getting it — and why that's on all of us to help change - Why consumers think buyer's agents are free — and why that's actually the root cause of all the lawsuits - The buyer brokerage agreement itself: what it actually says, why it sounds scary, and why you need something more approachable to introduce it - The origin story of the Hustle Humbly Buyer Brokerage Agreement Cover Letter — Alissa's ghost buyer who rejected her three times over years of Facebook messages, and why she needed a friendly cover letter instead of a legal document - What's in the cover letter and how it mirrors a listing appointment: 1. Commitments to you (what am I doing for you as your agent) 2. Buyer loyalty agreement (the buyer rules — FSBO, open houses, new construction, communication) 3. How do I get paid (yes, we just named it that — no more hiding) 4. What happens when we find the one (how this works at offer time) 5. General practices (office hours, communication preferences) - The last line: "If you feel as though we are a good fit and you would like to hire me, please see the terms on the attached buyer representation form" — not "we've been sued, sign this" - Why buyer consultations are back: getting someone to coffee before showing houses, going through the process, explaining how you get paid, setting expectations - The importance of having buyers know the rules before you start — FSBO, new construction, open houses, how to reach you - How the buyer brokerage agreement protects the agent in a FSBO situation - Why Alissa's office is still not requiring it yet — but why Connie is preparing — and why the acronym BRA became a thing - The bra story: agents in Connie's office showed up to the buyer representation agreement class wearing negligee over their clothes because BRA was everywhere — and Connie has since renamed it BBA - Why being a listing agent in addition to a buyer's agent is going to matter more than ever if the industry changes - How this fits into buyer folders and agent systems — two more documents added to what you already do - Why the best agents will thrive as others exit — and why preparation is the only answer

The Buyer Brokerage Agreement Cover Letter is available at hustlehumblypodcast.com/bba — $47, a customizable Canva template with space for your logo and photo, written in plain language, ready to add to your buyer presentation.

Referenced episodes: - Episode 214: Buyer Brokerage — Preparing for Changes in Real Estate

Toast of the week from Christina Kusik in Baton Rouge, Louisiana — incoming board president for 2024, toasting her newly appointed and returning Board of Directors members. Cheers to everyone willing to serve!

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Buyer Brokerage Agreement Cover Letter: http://hustlehumblypodcast.com/bba

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Music: Straight A's by Connor Price → https://connorprice.shop/ The Good Life by Summer Kennedy → https://soundcloud.com/summerkennedy/the-good-life Be The One by Matrika → https://uppbeat.io/t/matrika/be-the-one