Inside TBR

page 3 How the Sitzer/Burnett Verdict Impacts

Buyer’s Reps
page 4 Best Practices for Buyer Representation
Agreements
page 5 Consumer FAQs: Compensation and
Representation
page 6 24 Ways to Communicate Your Value in
2024
Next Month: Scripts for Discussing Your Value

OD
January 2024 Volume XXXIII Number 1

“One thing is certain: this is

a strong call to action for
buyer’s reps to clearly
articulate their unique value
proposition and openly
discuss compensation
with clients.”

page 3 How the Sitzer/Burnett Verdict

Impacts Buyer’s Reps

House
Details

Buyer
Representation
Agreement
page 2 TBR January 2024 Member Benefits and Updates

MADE TO ORDER

Homebuyer’s Toolkits
are Better Than Ever
A perennial favorite among ABR® designees, the newest version of the
Homebuyer’s Toolkit includes updated content and a fresh look and feel.
Select from five cover images and add your personal photo and contact
details to the back cover.

This 10-step reference guide walks buyers through the entire buying process
and emphasizes the importance of working with an Accredited Buyer’s
Representative (ABR®).

To order, visit the ABR® Print Shop

via the Member Center at
abr.realtor/member or scan the QR code.

ABR® SPOTLIGHT
Kristine Emerson, ABR®, SRES®
Company
Windermere Real Estate
Area Served
Seattle
Time as an ABR®
14 years
What is your best advice to other
ABR® designees?
Delve deeper into your client’s
needs beyond the basic
requirements. Consider how the
home will accommodate life’s
changes, such as a growing family
or aging in place. The closer our
connection with clients, the more
effectively we can serve them.
What is your favorite ABR® member
benefit?
The Consumer One-Sheets. They
break down information so my
clients can understand different
aspects of the buying process. I like
to include them in my presentation
packets.
How has the ABR® designation
impacted your business?
I’ve been able to share great articles
and educate my buyers with all the
consumer resources that come
with membership. Having the ABR®
designation listed on my business
card and website helps me stand
out from my competition.
 How the Sitzer/Burnett Verdict Impacts Buyer’s Reps TBR January 2024 page 3

How the Sitzer/Burnett Verdict

Impacts Buyer’s Reps
The recent Sitzer/Burnett trial has spotlighted long-standing industry norms surrounding
buyer agency and cooperative commission structures. The increased attention has raised
awareness and scrutiny about how buyer’s reps are compensated and the services they
provide. It’s natural to wonder what impact this verdict and similar suits could have on the
future of buyer representation.

Many ABR® designees are asking: Will the way we do business change?

The verdict doesn’t change the many choices buyers and
sellers have or how REALTORS® conduct their business. In
the meantime, NAR’s legal team is advising REALTORS® to:
1. Use buyer representation agreements to maximize
transparency and clarify your professional working
relationship with clients.
CONSIDER THESE RECOMMENDED STEPS:
Research and stay tuned for updates on the issues.
Visit competition.realtor for resources that can help
you discuss how cooperative compensation works and
reinforce the value REALTORS® bring to buyers. NAR will
share updates and additional resources as needed.

2. Ensure that clients know exactly what services and
value you provide and how much you charge.
3. Express to clients and your sphere that compensation
arrangements (including commissions) are, and have
always been, negotiable, and are set between
a broker and their client.
One thing is certain: this is a strong call to action for
buyer’s reps to maximize transparency which includes
clearly articulating your unique value proposition and
openly discussing your compensation with clients.
Leverage buyer’s representation agreements. Use them
to set clear expectations about your role, clearly explain
your compensation, and educate buyers on how you will
represent their interests throughout the entire purchasing
process.
Be prepared to answer client questions about
compensation. Visit realestatecommissionfacts.com for
insight and consult the list of questions on page 5 for
examples of FAQs. Look forward to the February issue,
where we will provide sample scripts to help you
respond to these questions effectively.

Get comfortable talking about your value. Work to

strengthen your brand, improve your skills, and actively
market your services as a buyer’s rep. Explore “24 Ways to
Communicate Your Value” on page 6 for strategies
and insights.
page 4 TBR January 2024 Best Practices for Buyer Representation Agreements

Best Practices
NAR strongly recommends the use of buyer representation
agreements. In eighteen states, a written buyer agreement is
required or understood to be required.

for Buyer Introducing, discussing, and signing the buyer’s representation

agreement can be a crucial tool to help build trust, promote
Representation transparency, and clarify your fiduciary duties to your client.

Agreements Consult this checklist to ensure you use best practices when
employing buyer representation agreements with clients.

Overall best practices
3 Research your state’s law
regarding buyer agreements.
3 Download the latest buyer
representation agreement form
from your brokerage or state
REALTOR® association.
3 Customize the agreement template
to reflect the specific services you
offer. Consult your broker and seek
legal guidance before finalizing your
agreement.
3 Use your agreement consistently
with all clients to avoid Fair Housing
violations.
3 Introduce the agreement during
the first buyer counseling session.
3 Obtain a signature before you start
working on behalf of the client.
Discuss the importance
of the agreement
3 Explain the purpose and benefits of
a buyer representation agreement.
3 Walk the client through each
clause in detail, including exclusivity,
duration, protection period, dual
agency, nondiscrimination, etc.
3 Discuss termination and
conditions for both parties to end
the agreement.
Agreement
Highlight your value
proposition
3 Clearly outline all of the services
that you will provide to serve in the
client’s best interests.
3 Specify what you won’t do (known
as limiting the scope) as their buyer’s
agent.
3 Highlight your value as an ABR®
and how it benefits the buyer’s
experience.
3 Establish the expectations for both
parties to avoid a misunderstanding.
Clearly address compensation
3 Clarify your compensation
structure and fees; explain
cooperative compensation and how
payment is handled in transactions.
3 Express that commission fees are
negotiable. Do not represent your
services as “free” to the buyer.
3 Emphasize that you will provide
information on all properties that
meet their criteria, regardless of
cooperative compensation offers.
Ensure understanding
3 Make sure the client fully
understands each part of the
agreement, which includes letting
them know they have the right to
consult their own counsel or other
professional.
3 Be prepared to answer questions
and address concerns.
3 Practice active listening to
understand the client’s needs and
expectations.
Sign the agreement or discuss
options
3 Invite your client to sign the
agreement.
3 Document all verbal and written
communications regarding the
agreement.
3 Keep a signed copy in your records
and provide one to the client.
3 If the buyer won’t sign, discuss
other options, such as a short-term
or nonexclusive agreement or offer
to work with them on a trial basis.
Reference the agreement
3 Refer to the agreement during
significant steps of the buying
process.
3 Openly address cooperative
compensation offers lower than
your agreed-upon fee and discuss
with your client how they can choose
to handle. Options include, but
are not limited to, asking the seller
directly to pay the difference, the
buyer paying out of their pocket, or
some combination of these or other
options.
3 Disclose any bonus or additional
compensation you are offered for
showing a particular property that
leads to a sale.
 Consumer FAQs: Compensation and Representation TBR January 2024 page 5

Consumer FAQs:
Compensation and Representation
Since recent court cases have heightened consumer awareness of issues related
to buyer representation and agents’ compensation, you should be prepared to
provide clear, honest, and fact-based answers to these types of questions:

Why do I need a buyer’s agent when all the houses are
listed online?
Emphasize that consumers can choose to work with an
agent for their purchase or not.
Explain that a buyer’s agent provides more than just access
to listings and review the many tasks you assist with during the
home search process.
Articulate how your services will save the buyer time,
money, and help them navigate the complexities of the most
significant transaction of their lifetime.
I thought working with a buyer’s agent was free!
Emphasize that you do charge a fee for your services.
Provide an overview of cooperative compensation and how
your fee could be offset by the seller’s broker.
Clarify that if the cooperative compensation offered does
not cover your fee, the buyer can choose to pay for the
difference out of their pocket, ask the seller directly to pay the
difference, some combination of these or other options.
How much do I have to pay? Is your commission
negotiable?
Establish how much you charge for your services as a
buyer’s rep.
Be clear that compensation is negotiable between the parties.
Explain that any negotiations regarding commission should
be done upfront and must be detailed in the buyer’s
representation agreement to ensure transparency.
Do I really need to sign a buyer’s representation
agreement?
If it isn’t required by your state laws, stress that while not
mandatory, it’s a professional standard that clarifies the
agent’s obligations and the buyer’s rights.
Affirm that these agreements formally define your working
relationship and clarify what the buyer can expect from their
agent, ensuring commitment and protection for both parties.
What makes you different from other buyer’s agents?
Highlight your unique qualifications, whether it be your
experience, specialized knowledge, or additional services that
elevate the buying experience.
Showcase your local market expertise and discuss your
approach to client service.

Buyer’s Representation Agreements

FIVE MISTAKES TO AVOID
6 1. Talking and acting like a buyer’s rep without clarifying the relationship
between the parties (e.g., exclusive, agency or non-agency).
6 2. Avoiding a discussion about the buyer agreement to avoid “pressuring”
buyers.
6 3. Relying on the state’s default agency position and not explaining it to To learn more about the benefits
of using buyer representation
your client.
agreements, watch the National
6 4. Assuming buyers understand the services you do and don’t provide and Association of REALTORS® “Window
know you are “on their side”. to the Law” video.
6 5. Postponing discussion of the buyer agreement until a buyer is ready to
make an offer.
page 6 TBR January 2024 24 Ways to Communicate Your Value in 2024

24 Ways
to Communicate Your Value
in 2024
Articulating your value as a buyer’s agent is paramount in the current market.
However, some agents fall into the trap of assuming that consumers know their
vital role in the purchase transaction and the full scope of their services.

Others hesitate to discuss their experience, credentials, and unique offerings

because they don’t want to appear “sales-y.” However, as a buyer’s representative,
you are not selling homes; you are selling your services to homebuyers.

That’s why it’s vital to seize every opportunity to communicate your value
proposition and express how you assist consumers through the financial, legal,
and emotional complexities of buying a home—and deserve every penny of your
commission.

Here are 24 ways to communicate the significant value you offer to clients
during the homebuying process:

1 Create a comprehensive list of your services.
Detail the many tasks you perform at every stage of
the transaction, from market analysis and property
searches to negotiation and closing support, which
justify your professional fees. Refer to your ABR®
course manual or download the Consumer One-
Sheet: “Buying a Home: What Your Buyer’s Agent Can
Do for You” to make sure you haven’t missed any of
the basics.
2 Elevate your buyer counseling sessions. Treat
buyer counseling with the same importance as a
listing presentation. Emphasize your full suite of
services and highlight what differentiates you from
other buyer’s agents.
3 Use buyer representation agreements
strategically. Formalize your professional
relationship with buyers. Use the agreement as
a conversation guide to discuss your services,
responsibilities, and compensation structure.
4 Be transparent about compensation. Practice
talking about how you are compensated and what
that means for buyers.
5 Prepare responses to common client questions
about compensation and services; practice
overcoming objections.
6 Strengthen your brand to differentiate yourself in
the marketplace.
7 Utilize all available marketing vehicles to talk
about your services, from social media and emails to
newsletters, mailers, videos, etc.
8 Use a branded version of the Homebuyer’s Toolkit
(an ABR® member benefit). Equip buyers with a guide
that outlines the buying process, emphasizing how
you assist them in navigating common pain points in
a purchase transaction.
9 Specialize in a niche. Carve out a specialty property
type, transaction, or area to set yourself apart from
the competition.
10 Pursue additional credentials that resonate with
buyers. Obtain further certifications to underscore
your dedication to professional growth and your
distinct role in the field.
 24 Ways to Communicate Your Value in 2024 TBR January 2024 page 7

11 Post educational content on social media that 19 Create consumer resources such as videos and
emphasizes the importance of your services. social media posts highlighting your value.

12 Leverage the ABR® Consumer One-Sheets and
other consumer materials to educate buyers about
the benefits of working with you.
13 Create informative video content to showcase
properties, demonstrate your local knowledge, offer
buying tips, and discuss market trends.
14 Gather and share testimonials to illustrate the
tangible benefits of working with you.
20 Develop neighborhood guides to position yourself
as a local market insider.
21 Serve as a hub for buyer resources, offering
connections to vetted professionals.
22 Track and share your buyer business metrics,
such as how many hours you spend working on a
buyer transaction, on average, and how many buyers
you’ve assisted.

15 Provide a detailed home search strategy 23 Offer regular local market analysis and updates to
complete with a realistic timeline. remind your sphere of your expertise and authority.

16 Host workshops and webinars to establish your 24 Share breaking news and commentary about your
authority and expertise. area and insights into how it affects homebuyers.

17 Organize community events to build visibility and

demonstrate your local knowledge.

18 Discuss your negotiation skills and share past

successes.

DON’T MISS!
SAMPLE SCRIPTS IN THE
FEBRUARY ISSUE
Be sure to check back in our next issue for a series of
sample scripts that you can use to respond to these types
of consumer questions.
 Real Estate Buyer’s Agent Council
430 North Michigan Avenue
Chicago, IL 60611
800-648-6224
REBAC@nar.realtor

Strategies for
communicating
your value
Look inside.

OD
Now more than ever, knowing your
value and how to communicate it to your

ve yo u re n ewe d yo ur buyer-clients is essential. Renewing your

Ha ABR® membership ensures you will continue

ABR® membershmip ? enjoying access to exclusive ABR® member

resources such as Today’s Buyer Rep.
ber me
If not, your exclusive
n e fits a re a b o u t to d isappear! Renew today at abr.realtor/dues.
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