Course: 5 Best Practices for Securing an Exclusive Agency Agreement

As you guide clients through the home buying process, a crucial part of your job may now include transitioning from an agreement signed prior to touring to an exclusive buyer agency agreement.

Navigating that transition can be tricky, so we asked agents on our Agent Advisory Board to share their best strategies in our new Zillow Academy course: How to Transition to an Exclusive Agency Agreement. We’re sharing those strategies and insights here with the entire agent community at no charge to help everyone acclimate to the NAR settlement changes.

Advisory board members say it’s important to come to the first meeting or tour prepared to discuss buyer representation. The tools and strategies they share here help them establish lasting connections with buyers while navigating a changing real estate market.  

1. Have a buyer presentation ready for the first meeting

A buyer presentation helps set the stage for a strong, ongoing relationship. Some key components of a buyer presentation include:

• Benefits of working with you
• What the buyer can expect from you in terms of service
• Client testimonials and reviews
• Hard copies of agreements
• A neighborhood guide
• A first-time buyers guide
• A property tax card
• Comparable home sales for the properties being toured

“Our job is to manage expectations.” — Joe Oz, team lead of The Oz Group in New Jersey

2. Plan where and when you’ll discuss the exclusive agreement

Many agents say they have the exclusive agreement conversation after the second or third showing. Be mindful that the timeline is specific to each buyer, and some buyers may be ready after the first showing. Leave 30 minutes open in your schedule after a showing to ensure adequate time for this discussion. Some agent advisors who currently use Zillow’s non-exclusive Touring Agreement find that the agreement’s seven-day expiration also provides a window for having that conversation. 

The best places to discuss the agreement have limited distractions, allow for focused conversations, and put the buyer at ease to discuss specifics.

“Some people want to do things super rapidly. So for us, we're typically bringing it up on that second or third showing.” — Michael Perry, team lead, Real Broker in Utah

3. Show buyers your value

When preparing your buyer presentation, include information that demonstrates your unique value. Some areas to highlight include:

• Your deep understanding of the market (some partners include a neighborhood buyer guide)
• Your experience writing and winning offers, especially in multiple-offers situations
• Access to “house hunting” services and off-market properties
• Benefits of working with a team, if that applies
• Reviews and client testimonials

Whenever possible, use data to tell a compelling story about your value.

 

“Many people think the house is the product we're selling, but as real estate professionals, we're actually selling our services to the consumer.” — Frank Navazi, Growth Partner, eHomes, Southern California

4. Be transparent about compensation

The NAR settlement requires agents to clearly define their compensation in written buyer agreements. Explaining how compensation works – and what is and isn’t allowed – is a good way to build trust and understanding with clients.

Agents on our Advisory Board typically review the agreement section by section so the buyer fully understands what they’re signing. Understanding the buyer’s specific needs and financial situation can make for a more productive discussion. 

“I'm gonna do everything I can to get part or all of my fee covered by the seller either directly, in terms of seller concessions, price reductions – there's a lot of ways that I can work that into the deal.” — Micah Harper, team lead, Exquisite Properties, San Antonio, Texas

5. Prepare responses for common objections

The best way to serve the consumer’s needs effectively is to make sure the buyer knows that your services and compensation are negotiable.

Below, one agent shared some common objections to signing an exclusive agreement and how his team overcomes them. For instance, he grounds the conversation in dollar terms if a buyer objects to a percentage, makes the case for his value, and reminds the buyer that other agents will also ask for compensation.

“If you can get a buyer to name their concern, you can address their concern.” — Micah Harper, team lead, Exquisite Properties, San Antonio, Texas

Explore our Industry Support Hub for more tools and resources designed to help agents navigate the NAR settlement.