BRICK AND GARDEN BUY-SIDE COMPENSATION POLICY

WELCOME TO A REDFIN WORLD

Brick and Garden strongly supports new business models.  As you may be aware, both nationally and in our local market, we are seeing a new breed of real estate discounter:  The Limited Service Buyer Agent.

They, too, have our full support.

However, in any real estate transaction, there are responsibilities traditionally performed by the listing agent and others traditionally performed by the buyer's agent.  We do not believe that it has to be this way.  However, if the work load is altered, then the fee-arrangement needs to be altered to match the new responsibilities.

This starts, of course, with showing property.  Let's be clear what we are talking about:  Buyers' agents showing, or not showing, property to their own clients. Some would argue that they have no duty to show property.  And, we are actually agnostic on this point.  However, one of the primary reasons that sellers offer to pay buyers' agents is to compensate them for the time and expense invested in showing property.

Further, in our view, the buyer's agent is compensated for a whole series of events:  Procuring cause, showing property, writing & negotiating the offer, coordinating inspections, appraisals, etc., and basically shepherding the transaction to closing vis-a-vis, their client, the buyer.

If the buyer's agent is not going to render some or all of these services, that is their business decision.  Consequently, the listing agent may very well assume some or all of these responsibilities in order to best serve their client, the seller. However, the buyer's agent should not then expect full, traditional compensation.  In other words, the listing agent should not be expected to pay the buyer's agent for the privilege of doing the buyer's agent's job.

VARIABLE BUYER AGENT COMPENSATION

The answer is simple enough.  Make a distinction between a "Full Service Buyer Agent" and a "Limited Service Buyer Agent".  This idea is not new.  We have all been doing just this on the list side for some time now.  In fact, our MLS accommodates EO and LS listings within the Tempo system.  We suggest a corresponding accommodation regarding the offered buy-side compensation. Better yet, for maximum flexibility, why not simply expand the Buyer Agent Commission field to accommodate any compensation policy that a given listing agent/firm may choose.

Definitions

Until formally defined, we propose the following:

Our firm will compensate limited service buyer agents based on procuring cause and services rendered.  In any case, if you offer limited services as a buyer's agent, do not expect to be compensated as a full service agent.

Brick & Garden Real Estate - Post Office Box 3882, Cary, NC  27519

Phone: 919.342.5911  Fax: 919.882.1055

Email: Info@BrickandGarden.com