Beware! Bumpy ride ahead while navigating the new buyer process with transferees.

The process with a buyer is about to undergo radical changes. It's not just the comp issue but the entire process before an agent works with the prospect. This transition may create challenges, especially for incoming buyers from out of town.

Typically, when a potential transferee comes into town, they may have had a phone call or just communicated via email or text with the agent before they head out to look at homes. They may have been counseled long distance on the area by a Relocation Counselor in the Relocation Department or by the agent to uncover their wants, needs, and price point. Then, when they come to town, the agent may pick them up at the hotel, or they may meet at a designated location or even possibly meet at the first house they are viewing.  I have to say, we have sort of been phoning in the early part of the buyer process, which typically only includes area counseling before arrival, online community guides, and then property research and tour prep by the agent. No presentation or formal explanation of the value the agent delivers or services or processes.

We need to shift our thinking about the process and slow it down. Each relocation company and its clients might handle the new requirements differently. They may insert an addendum or clause for the agent or Relocation Director to sign or allow the transferee to handle it on their own. It will be important to ensure that if the transferee requests an agent change during the househunting process, we can accommodate that request. No matter how it is handled, it's crucial that we ensure nothing violates our legal obligations outlined by the settlement, emphasizing our commitment to legal compliance.

Treat the buyer like a seller.

Relocation agents should have a buyer’s presentation approved by the Relocation Director so they can sit down and talk about their value and walk the buyer through the buyer’s representation agreement. It may be more prudent to do it via video conference so that by the time they come into town, the transferee can use the time efficiently and head straight out to look at homes.

The challenge here is that sometimes, making a real connection via a Zoom call is hard. To convey their value, the agent should have a formal presentation (similar to a listing presentation) that may need to be shared online. It is important that the presentation not feel stiff and corporate. It is easy to be passionate when doing a listing presentation because they feel passionate about their home, so agents can tap into that while actually sitting in that home. But we won’t have the luxury of doing it in person with transferees. It is hard to read body language and really connect that way when you haven’t met someone in person. So agents will have to focus on tapping into their dream of the home that has yet to be identified while also discussing how they will get paid for finding and negotiating that home to a successful close.

Hopefully, corporate buyer referrals will come with a clearly outlined compensation structure, including what the benefits cover. However, initially, it may not be clear since it appears some corporations are taking the wait-and-see stance, which means case-by-case exceptions. And for sure, broker-to-broker referrals will not be predetermined since the actual prospect drives those decisions.

Will we have to compete for buyers?

We might see a procedure similar to the listing process emerge. Currently, when we receive an incoming corporate listing referral, the RMC sends at least two agents out to win the seller's favor. Usually, when a buyer referral comes in, it is only sent to one brokerage. The buyer (or their employer) might be paying for the agent’s services, and we may see a trend of sending the referral to two companies so the buyer has a choice of their preferred agent. Your agent’s expertise and approach could be the deciding factor for the buyer. The agents either engage the prospect via video conference or meet them for the first time when they come into town. It’s not about showing up; it’s about showing value.

A listing presentation is all about ‘how much and how fast.’ While the final decision may come down to who the client likes the best, it is often based on who will achieve the goal of getting the seller the most money. Now, with a buyer, it focuses more on the actual person providing the services. There is no property, so it comes down to who they like, who will work the hardest, who is the most knowledgeable and professional, and possibly who will do it the cheapest. Are we going to dictate to the agent what compensation is too low? With a massive referral fee owed on these referrals to the RMC, it is in their best interest for the RMC to help educate the buyer on the value a good agent brings and what they are worth.

It's going to be a bumpy ride.

I am already hearing stories of corporate relocation buyers who refuse to sign the buyer’s agreement or are prohibited if compensation is mentioned. It’s important for the corporation to understand the dynamic that creates within a relocation department. The counselor has delivered a prospective buyer to a relocation-trained agent. The agent discusses the agreement with the prospect. Some companies and states have already implemented the required buyer representation agreement. They, or their RMC or employer, refuse to sign or to include compensation, and then the RMC pulls the referral and goes to another company. How do you think that is going to make the relocation agent feel? These discussions should happen before they get to the agent so we know what we are dealing with.

Expect to see some attrition of some very good relocation agents from the team. After July, if an agent is proceeding by working with a prospect without a buyer’s agency agreement, the corporation and RMC should be very concerned about the ethical standing of that brokerage or agent. Is it going to become a race to the bottom to see who will do it for the cheapest? It is in the best interest of the RMCs to not let that happen.

Here are some recommendations to prepare for what is to come:

• Review your agent’s buyer presentation with them. Do not let them wing it. The pay structure possibilities should be included clearly in writing in as simple of terms as possible.

• It should also include why they do everything they do for the customer—not just a list of tasks—but why the tasks are important and benefit the buyer. It is their value proposition.

• Include why they must sign the buyer’s representation agreement. Hopefully, the RMC or someone from your own Relocation Department has preliminarily discussed the agreement with the transferee.

• Your agent should be able to articulate what sets them and your brokerage apart. Use testimonials of satisfied homeowners and transferees. Why is the agent the best person to help the transferee find the perfect home and community for their family?

• Ensure each of your team agents has a transaction closing checklist for buyers. They should have had it anyway, but now it is more important than ever. It is important to prepare the buyer so they can see how the agent will guide them through the many steps of the process, along with the needed documents.

• Keep providing all of the valuable services the Relocation Department offers buyers: area counseling, online relocation guides, utility hookup and essential services resources, concierge home services programs, and follow-up to ensure satisfaction. If you are not providing these, you should be.

• Work with your agent team to role-play and run various scripting scenarios. There are loads of scripts out there from reputable coaches and trainers. Here’s a good one from Jeff Lobb, CEO and president of Sparktank Media and Coach 52, “When you hire me as your buyer’s agent, not only is my role to show you the home, but to negotiate any and all fees, whether it comes from the seller’s side, or from the proceeds of the sale, or your funds (or your employer’s). You’re hiring me to negotiate these fees from all the other parties.”

• Train your counselors to ask the RMC consultant a list of pre-written questions about every buyer referral that comes in. Such as:

1. How is our agent/company getting paid? Then, give them the If this…then that‘ list of scenarios if needed.

2. Is the transferee prepared to sign the buyer’s representation agreement that we will provide and address compensation?

3. Do you have any specific documentation or addendum that you will require us to add to our agreement? We will need to see that before we accept the referral.

4. If the compensation is below X, will you still require the same referral fee?

5. If the corporation or the buyer is unprepared or unwilling to pay the agent’s compensation if necessary, what do you expect us to do?

I am sure you can think of many other pertinent questions. As more brokerages begin to implement buyer’s representation agreements and corporations come to grips with the new reality, the next couple of months will likely cause some heartburn. Tell your team agents and staff to take a deep breath and hang in there. This, too, shall pass. And we will settle into the new normal.

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“Fasten your seat belts, it’s going to be a bumpy night." ~Bette Davis, actress. Quote from All About Eve.