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Unpack the impact for sellers.
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
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Print this overview for your seller
Use this UPDATED FAQ to tell sellers what they need to know
Use this presentation to help set your sellers up for success
Scripts for Success
Scripts for Success
In response to today's evolving conversations, we’ve developed essential scripts to ensure transparent and compliant communication with your clients. Use the scripts linked below as your guide. Explore common questions your clients will ask about concessions and the impact on their sale. Get answers to how concessions affect the bottom line, sale price, negotiations, and more.
Download the Scripts & Talking Points
How Do Concessions Affect My Bottom Line?
Do Concessions Affect Sale Price?
What If a Buyer Requests Concessions for Their
Agent’s Commission?
How Do Concessions Impact Negotiations?
What Types of Concessions Are Common?
It’s ALL About NET
It’s ALL About NET
Always provide a net sheet with scenarios at the time of listing. For every offer received, ensure the seller gets a net sheet. For multiple offers, use a spreadsheet to show the differences. Clearly present the final number, considering concessions, credits, or direct compensation, to help the seller make an informed decision
Download the Multiple Offers Review Sheet
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
HOW TO PAY A BUYER'S AGENT
BAC - Listing agent brokerage negotiates commission and shares it with buyer's agent brokerage
Buyer pays their agent directly as a closing cost
Buyer pays for part and seller pays for part as a closing cost
Seller pays the full commission on behalf of the Buyer at closing
YOU CHOOSE: USE TXR FORMS OR EXP TX FORMS
HOW TO MARKET YOUR PROPERTY
HOW TO MARKET YOUR PROPERTY
Here's what you CAN'T DO!!!!!!
You CANNOT advertise via MLS or hint to it in any way.
Not in photos, not in docs, not in the description, not in open house descriptions, etc.
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 1-4 Contract with Paragraph 12 filled out to request broker fees with your offer."
WHERE YOU CAN ADVERTISE
Text messages
Email blasts
Social media
Phone calls
Newspapers/magazines, etc.
Flyers
Sign riders
Signs in the yard
Keychains
Signs in the house
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 OR even HINT at it creatively.
updated 12-2024
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
PAPERWORK: New Listing ON OR AFTER June 24, 2024
Listing Agreement Forms: VIEW SAMPLE PACKAGE PDF
TXR-1101 (6/24/24) Residential Real Estate Listing Agreement - Exclusive Right to SELL
or IF LEASE - TXR-1102 (6/24/24) Residential Real Estate Listing Agreement - Exclusive Right to LEASE
or IF FARM & RANCH - TXR 1201 (6/24/24) Farm & Ranch Real Estate Listing Agreement - Exclusive Right to Sell
TXR-1412 (6/24/24) Seller’s Authorization to Release & Advertise Certain Info - if seller is planning to pay a buyer's agent commission
****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 1-4 Contract with Paragraph 12 filled out to request broker fees with your offer."
TXR-2501 TREC Information About Brokerage Services
TREC Consumer Protection Notice
TXR-2517 Wire Fraud Warning (Seller)
eXp Affiliated Business Disclosure
TXR-2513 Disclosure of Relationship with Residential Service Company (signed only by you and the sellers, not buyers)
TREC (not TXR) Seller's Disclosure Notice (4 pages)
TXR-1906 Lead-Based Paint Addendum - if built before 1978
PRINT - T-47 Survey Affidavit if they are using the existing survey
2024 SPECIAL ADDENDUMS AS NEEDED
TXR-1403 (6/24/24) - Exclusive Agency Addendum to Listing
Use in agreements where seller is exclusively listing to sell with you as the Broker, but is also marketing the property and procuring buyers through their own efforts. If owner sells/leases to an Excluded Prospect, owner will not be obligated to pay the Broker the amounts in the main listing agreement, but instead a different fee structure per paragraph C.
TXR-1402 (6/24/24) - Named Exclusions Addendum to Listing
Used when the seller is already negotiating with a buyer and that person/entity is being excluded from the Listing Representation Agreement. If owner sells/leases to an Excluded Prospect, owner will not be obligated to pay the Broker the amounts in the main listing agreement, but instead a different fee structure per paragraph B.
In the Texas contracts, the buyer agent can fill out Paragraph 12 (updated 12-2024) to request buyer compensation.
In the Texas contracts, the buyer agent can fill out Paragraph 12 (updated 12-2024) to request buyer compensation.
How do we set up the listing agreement to handle unrepresented buyers?
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?
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?
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 directly to a Buyer’s Broker. All terms are negotiable. Please fill out and submit the 1-4 Contract with Paragraph 12 filled out to request broker 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?
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?
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)
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”
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