The Dual Agency Scenario is an interesting one that keeps coming up in Matt and Garrett's recent coaching sessions. Today they look at how to handle the situation when you have multiple buyers interested in the same property, or you have a buyer who's interested in one of your listings. They acknowledge that protocols may vary depending on your state, but the key is to have open communication with your clients, and be upfront about your procedure for this, and any other potential situations that could arise, during your 10-Step Buyer Process conversation. This clarifies that you will be representing them, and not sharing any information to the other parties involved.
Being transparent about your process helps to build trust, and gives your clients the confidence to know that they are ultimately in control of their real estate decisions, not just along for the ride. Getting ahead of these situations also prevents uncomfortable conversations in the moment, where your clients feel pressured to make decisions under confusing, rushed circumstances. If you don't currently have a policy for Dual Agency Scenarios in place, Matt and Garrett explain how to do so with your managing broker or a trusted colleague, without having to refer your clients elsewhere, pay additional fees, or lose the relationship that you've worked so hard to build.
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Episode Highlights:
- What to do as an agent when you have multiple buyers interested in the same home
- It comes down to process and having open communication upfront
- Garrett's example of an agent who had 4 buyers interested in the same property
- Are we having the conversation up front with our clients during the 10-Step Process, based on whatever the protocol is in your office?
- Consumer Information Statement
- Dual Agency Scenario - you have a listing and a buyer, and the buyer is interested in your listing
- Key is to be clear and open about the process so there is no confusion - people can't make decisions when they're confused
- Clarity helps build trust as well, particularly if you are going to be a dual agent and write an offer on your own listing
- If you are representing the buyer only, and you overhear what another buyer is offering, you can use that information to formulate your own offer - you cannot do this if you are representing both buyers
- This isn't really a disadvantage, though, as it is very rare for another agent to let you overhear this information
- Comes back to speaking to your client upfront about different situations that could arise, and how you would handle them
- How the broker relationship comes into play, can bring huge value to the process
- Managing broker can help write the contract in a dual agency scenario, then you take over once negotiation is complete
- This way you don't have to refer clients away from you, and you can maintain the strong relationship you've worked so hard to build
- If you do not want your managing broker to take on this role in dual agency scenarios, you can also work out an arrangement with a colleague you trust, and be sure to reciprocate when they are in the same position
- Being upfront with your clients about the process, even if you don't encounter a dual agency situation, gives them the confidence to know that they are in control of the decision and that they're not just along for the ride
- If are only having these conversations as the moment arises, it can feel very "salesy" and put pressure on your clients
- If you don't have a process, figure one out immediately (for managers and brokers)
- Reminder that Ninja principles apply not only to real estate, but to all businesses that involve working with people
Quotes:
"Does your office have a policy of who that person gets given to, and in what order, and what does that look like?"
"If you don't let them know, it does bring up weird questions… Who is she representing? How much has she shared? How does this work? Do they know where our negotiation standpoints are? It just brings in confusion."
"We want to do everything we can to make sure that they understand that they're being represented, and there's as little confusion as possible. Because people can't make decisions when they're confused."
"There needs to be a very high level of trust."
"As a managing broker, anytime my agent was in these situations, our process was, if you have a listing, and you have a buyer, I will write the contract and negotiate for the buyer as the manager, there's no fee for that, I just do that. And then once the negotiation's complete, the process goes back into the control of the agent."
"Same thing, if there are multiple buyers that an agent had writing on a listing - Alright, the first one to write, you take, and the next one, I'll take. We'll negotiate out. And then after that you take over. And that's a huge opportunity. Because like then there's no referral fees going in there for a little bit of work."
"I think managing brokers, a lot of times, don't realize that that is a massive value that they can bring to their agents, and to let them know, I'm here to represent you and to take care of that situation when it comes up. And again, you're not going to owe me anything."
"If you don't have a brokerage that has these processes, talk to your colleagues and develop a process that works for you guys."
"That's why I think managers can easily step into this role. You have the experience, you have the knowledge. And if you're a part of Ninja, you also know how this works, right?"
"There might be that situation of, I don't even want my managing broker to represent my people. I would be looking internally or to my colleagues to say, Hey, if this comes up, Matt, I'll have your back, you have my back."
"This goes back to the tribe that you build in your office as a managing broker and owner of a company. You want to build people in that want to help people out like that. They're not just sitting there going, Well, what's in it for me? If there's nothing for me, I'm not helping you out, you're on your own. We don't want that. We want a group of people that are like, I'll jump in and I'll help."
"Even just practicing this process of explaining this upfront, and really looking into how we control the process, how they control the decisions, will also help you with negotiations even if you don't have this scenario happen. Because your clients will also be prepped to know that they're in control of their decision."
"I think it's very healthy to let them know that they actually are in the driver's seat of this. We're not taking it over and being like, Ah, we've got it from here."
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