April 5, 2024 • 41 mins
Step into the future of real estate with our latest episode of The 121% Podcast, "Buyer Broker Agreements: Chrissie Wright’s Playbook for Navigating New Norms in Real Estate." Join host Kevin Johnson as he engages in an enlightening conversation with Chrissie Wright, the esteemed broker/owner of CENTURY 21 Portfolio, renowned for her leadership within the industry.
This episode is a treasure trove of insights, shedding light on the pivotal role buyer-broker agreements play in today’s real estate landscape. With the National Association of REALTORS®' proposed settlement sparking widespread debate, Chrissie offers a seasoned perspective on how these agreements fortify agent-client relationships and ensure agents are fairly compensated for their invaluable services.
Listeners will gain:
- A deep dive into the evolution and significance of buyer broker agreements, from their roots in Arkansas to their impending national mandate.
- Practical strategies and scripts for presenting buyer-broker agreements to clients, demystifying the process, and highlighting the mutual benefits.
- Chrissie's expert tips on maintaining a positive mindset amid industry changes, empowering agents to view these shifts as opportunities for growth and advancement.
- An insider’s look at how Chrissie's firm successfully navigated the transition to mandatory buyer broker agreements, setting a benchmark for professionalism and client service in the real estate sector.
"Buyer Broker Agreements" is not just an episode; it's a guide for real estate professionals seeking to adapt, thrive, and excel in an ever-evolving industry. Whether you're a seasoned broker, a new agent, or a savvy buyer curious about what these changes mean for you, this discussion is packed with valuable insights that will propel you toward success.
Tune in to discover how embracing change with the right mindset and tools can transform challenges into remarkable achievements. Chrissie Wright leads the way, showing us all how to navigate the new norms of real estate with confidence and skill.
LEGAL DISCLAIMER: The views, opinions, and content expressed in The 121% Podcast are solely those of the individual speakers and do not reflect the opinions, beliefs, or policies of the show's sponsors, Century 21 Real Estate LLC, CENTURY 21® Edge, OneBlue Real Estate School, or their affiliates. Each CENTURY 21® office is independently owned and operated. CENTURY 21 Edge and OneBlue Real Estate School fully support the principles of the Fair Housing Act.
The information provided in this podcast is for educational and entertainment purposes only. While we strive to provide accurate and up-to-date information, we do not guarantee the content's veracity, reliability, or completeness. The 121% Podcast and its creators are not responsible for errors, omissions, or results obtained from using this information. Listeners are encouraged to conduct their own research and due diligence and seek professional advice before making legal, financial, or real estate decisions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Chrissie Wright (00:00):
Up until you have a buyer's rep you
(00:02):
essentially allowing the sellerto say what you're gonna make
that you're allowing them topick what you're going to buy.
This allows you to say, This ismy value. This is my work.
Welcome
Mary Thompson Hunt (00:10):
to the 121% Podcast, the podcast dedicated
to helping real estate agentstake their business from where
they are now to 121% whomotivation, education and
action. And now, here is yourhost, Kevin Johnson.
Kevin Johnson (00:28):
Jordan, welcome to another episode of the 121%
podcast. My name is KevinJohnson and today I am excited
to welcome Christy Wright ofcentury 21 portfolio Krissy. For
those that don't know you thathaven't had the privilege of
meeting you, or maybe that partof our brand and been living
under a rock. Tell us a littlebit about your story. Like how
(00:48):
did you get into this crazything we call real estate and
find yourself running one of thetop brokerages in the country?
Chrissie Wright (00:55):
I well, I guess. Yeah. So my degree was an
education. But I had my daughterwhen I was younger, and I
thought, I don't know that I wasgoing to be tracking to school
all day, you know, great bridgecares, but not for me. No May I
just don't have the patience forthat. So there was a house
across the street goes for saleby owner. That was Brenda bars.
And they were out of town. Andthey asked me to show it while
(01:19):
they're in a town. So went overthere and open up the door and
let the people in that wanted tolook at it. And then after that,
this is back in 2002. They'relike, Oh, are you hosted? I did.
I was like, No, I'm not a realestate agent. Maybe I should go
to real estate school. So prettymuch like the Legally Blonde
where she decides to go to lawschool, I decided to get a real
estate school. And I worked atColdwell Banker for 10 years.
(01:40):
And then in 2000. Well, I boughta cannabis insured running one
that was yeah, really only hadfive agents, it was kind of a
dying brand in our market. Andover the past 1112 years. Yeah,
we basically built it to wherenow we're the number one in the
state, and we have around101 125 agents. So I just gotta
(02:01):
say, God's like listening. Yeah,I've got great people around me
and and great sport,incorporate. And it's just been
a great run, which hopefullywill continue for another one
two years. God
Kevin Johnson (02:12):
will right. But what do they say guy Warren and
the creek don't rise. So talkabout like, you know, you've
grown this business, and it'sit's wildly successful, you're
well respected within our brand.
I mean, everybody looks up toyou. Were there any pivotal
moments in that that journeythat you just mentioned that
kind of shaped the leader thatyou are today?
Chrissie Wright (02:34):
Oh, that's Thank you very much for that
compliment. I appreciate it. Idon't know if there's one
pivotal moment, I think it'skind of like I'm one of those.
Hey, let's try it. Yeah, I neverknow, unless you try it, I
always tell my mother better totry to last and never tried at
all. So a lot of it was justjumping in, you know, be earnest
and going for it. And then alsobe willing to ask questions. I
(02:57):
mean, you know, I talked to you,I talked to a lot of brokers
around the country constantlyjust asking them questions. And
I think that's probably, youknow, it's been like dental
moment is just each time iDoctor, another broker or
another company, it's like, Ooh,I might take that, even if it's
just a little smidgen of an ideaand build upon it. And I think
that is really, I'm a bigbeliever and getting build it,
(03:20):
they will come selling more mayinstead of really focusing on
you know, the outward trying toget inward for our office and
our agents and is constantlytrying to build what we have.
Because I always think thatpeople like to be a part of
something next reason thatcountry clubs, Elks clubs, all
these. Yeah, because people likethe Arctic, somebody, and they
looked at that as something thatwhen we are a tie, they want to
(03:42):
enjoy what they're doing. And sothat's what I've been like
focus, and probably my pivotalmoment is, we're not gonna worry
about the outside, we're smartabout the inside. And then
people will come and I'm lookingfor brokers like you and others
on how,
Kevin Johnson (03:54):
yeah, that's what you know, from Louisiana. And we
have a famous dish called gumbo.
And it's kind of like, you know,it's a little bit of everything
thrown in there, right that ingeneral, I can use gumbo or
jumbo lies on the menu, you gotto ask what kind because you
never know what what you'regonna get when you get it. And
it's, it's all those littleingredients that add up to make
the very special dish. And I'vealways described my business
(04:15):
that way,
Chrissie Wright (04:17):
and you laugh at yourself. It's better to say
that because I'm like, we are amelting pot. My office is a
melting pot of agents that havecome from all different walks of
life. Just like your gumbo. Andwe're all willing to laugh at
ourselves. And we don't takeourselves too serious because I
think that's key. I think someoffices are just a little bit
stuffy. And they try and be alittle bit too perfect. And you
(04:39):
know, they get starts at the topand if I'm only black myself,
and then I'll ask themselves,that
Kevin Johnson (04:44):
our agent should laugh at themselves. Like
because I laugh at myself allthe time, like and I tell them
all the time. Go out there andmake mistakes, have fun, fail
fail often fail big. Don't failsmall. You know, if you're gonna
do it, do it. Just do it andlearn from it. But that's how we
improve. Why no today we willAre the chat a little bit
because you know, there's beensome, just a little little news
in the industry recently withjust just a smidge, just a
(05:08):
smidge with the recent proposedsettlement that the National
Association of REALTORS hasagreed to. And that class action
suit, of course, when a caveatthat that the suit, or the
settlement is still proposed hasnot been approved by the court.
They're not expecting that tillat least may. But out of that
comes two big changes. One ofthem, which is that, you know,
(05:31):
we can no longer advertise thecooperating commission that a
listing broker typically offersin the MLS like we do, now, we
can still offer it, it justcan't be advertised in this one
spot, everywhere else is good.
And then the other one that isany member of the National
Association of Realtors, whowants to work with a buyer is
going to have to have a buyerbroker agreement signed before
(05:52):
they can show properties is notgoing to be an option. Now, you
know, good brokers, reputablebrokers out there have long, you
know, champion these agreements,because it helps with
transparency, and we've beenusing them forever. It helps
make sure the customer knowstheir expectations of us and our
expectations of them is it is atwo way street. But a lot of
agents and brokers didn'trequire it. Because it wasn't
(06:16):
the it wasn't the easy way.
Right. It was you had to sitdown actually prove value. And I
know for you in your state,Arkansas, this has been
something that, you know, hasbeen a requirement for your
state law from your from yourreal estate commission for a
while now. How long ago? Was itthat Arkansas adopted this
(06:36):
position?
Chrissie Wright (06:38):
That we've always had kind of an adoption
on explain agency prior tobeginning? Yeah, that's always
since I've been a licensed agentsince 2002. So at least 20, over
20 years. I know that, you know,in our state, they had a
brochure that says this isagency and explain agency, and
they wanted that a little timeon there that you're supposed to
get your you have a solutionthat a client, they're supposed
to sign it and then you tear itoff. And you give them the
(07:01):
brochure to keep and keep alittle time basically showing
that they signed it that youthat they received it now
wherever they read it or not.
Who knows, but it was somegroup, and that it kind of
evolved where, hey, we need tospend more than just explaining
agency. We need some reps. Yeah,we need some representation
contracts, that they areactually signed off that yes, we
understand agency. But now we'reto the level that we want you to
(07:21):
be our AST we want to hire you.
And it's been around since I'man I can't remember when that
started. But at least 10 years.
I know that when I started since2001, and 2012. Yeah, we made it
very much. Yeah, it was at thatpoint, you had to have it there
was it was part of that it wasselling like you had to have it
(07:42):
prior to writing the contract.
So some agents would get itsigned, right when they're
writing their contract. But inmy office in 2012, we've decided
to eliminate recommend kind ofbiggest gap. Like let's just go
ahead and get it signed and getit done. And, you know, it's, of
course, everybody's freaking outover these changes. And no one
likes change. So people don'tlike It's like in 2015, when
(08:05):
they changed settlementstatements. And we went from
having, you know, HUD and, youknow, now we have a three day
with TRID. And all of these taxthings, everyone's freaking out.
Now, are we ever going to pick aclosing date, because we have to
wait three days, and it allworked out? I think the same
thing with these buyeragreements. And I know the
states that have not been likeArkansas, are really kind of
(08:26):
breaking out from talking toother brokers. But I think it's
gonna be the same thing, whichwe'll look back and be like,
Bob, remember 2024. And we havelimited those. So in my market,
this is just how Ebola has doneit for so long that I don't
really know any different. Andyes, then the MLS will be a
little bit different that wecan't say exactly what we're
doing, right. But in my market,that second shift over the last
(08:48):
five years, to where we don'tnecessarily see it anyways,
because we had companies comein, but lower splits. And so we
started doing some brokeragreements. And so we weren't
always getting that. That wasbeing shown me wise, a lot of
times you were still being paidmore than that was being
advertised. Because yeah, NARsaid you had to advertise
something, but you technicallydidn't advertise what you were
(09:08):
willing to pay out, you'd haveto advertise all of it if you
want to, as long as your selleragreed to that. So we've had a
lot of different things going onthat is now kind of coming into
play across the country.
Kevin Johnson (09:19):
So talking about that change a little bit, to
hear it where the offer of compmove was, is most or a lot of
MLS says you could put zero oras little as $1 for years. So
how do you how did you help youragents transition to the point
where they were putting the feethat they were expecting to get
paid on those buyer brokercommissions? Because, you know,
(09:40):
the feedback I'm hearing onlinefrom a lot of agents is that,
you know, they're worried thatwhat if they don't have the
money? It's all these negativethings, right? Instead of trying
to like, Well, how about we juststep up and prove our value? But
so how did you help your agentsmake that transition where we're
going from just an agencyagreement to here is a buyer
broker agreement, that's gonnasay you're gonna pay me X,
(10:03):
regardless of whether, you know,if they don't pay on listing
progress and patient say, you'restill gonna pay?
Chrissie Wright (10:09):
Well, I think you know, the first time is
always the hardest. And then itisn't. It's, I think for right
now I tell people, I'm a happywe're all kind of in this junior
high dating. It's like no onestudied before. And when I first
start buyers reps, it feels likeyou're in junior high, again,
you're having to ask someone,you have to go slow dance with
you, and you're breaking out andthink about it for weeks, what
actually happens. And so I feellike that's where we're at. And
(10:33):
then you get to where you'regrown up, and you're like, Okay,
it's no big deal. You just doit. So for those that are all
kind of junior high, awkwarddance stage, the best way that
we started was we kind of madeup a script of sorts, that we
kind of hang up a few thingsthat were talking white, that
way my little packets in ouroffice, and we said, here's
these packets, we want you tokeep them in your car, which is
basically going to be a roadmapfor you to go off, just like the
(10:56):
contract is new, talk toyourselves. So when you talk to
a seller and the listingagreement, you're like, Oh, this
is right, but your names recordyour address where we're at with
that, yeah, the length of thelisting agreement, and you go
through, right, and that's yourroadmap of work had been
discussed? Why they do foragents right now? Because like,
how am I gonna just walk in andsay, Hey, use me, that's kind of
(11:18):
breaking them out. So we came upwith these packets in our
packet, we basically say to him,Hey, let's show the house. At
the end of showing the housework. They want to be at the
office, the foreshore of thehouse with Bill the packet out?
And what if you had a secondelectrodes with this for you?
One thing that I want to pointout is that right now, we're
dating lots of people, I knowthat you called me about this
(11:38):
listing. But it's basically likewe're dating lots of people, and
you have no representation, whatI'd like to do is I'd like for
you to hire me to represent you.
So that way you do have somerepresentation. And then going
into it, we go on to thecontract. And we say this,
right, a year is a contract. Andwhat it is, is it basically said
that I represent you and thiscontract, and as I put, let's
(12:00):
say, three rabbits at threerabbits in this contract, saying
that that will be my payment,historically, the seller will
pay that on behalf of the buyer.
So this will probably be paid bythe seller. But in the event, if
the seller does not pay, it willjust ask the seller to pay it on
(12:20):
behalf more than write theoffer. And we can cross that
bridge when we get there. Thenthis is right here. This is
where I would prefercancellation. So if you decide
you don't want to work with mein the future, you don't have to
work with me. But basically whatthis is saying is that I
represent you. So that way I cantake you and if you're not
willing to make a commitment, Iunderstand that. But here's the
deal, I have people that arewondering, like I couldn't met
(12:41):
someone majority of my time isspent, you know, on the people
that are about listingagreements with that tournament,
or the blood buyers agreementswith. So I'm not saying I won't
still send you some properties.
But you know, I can't promisethat I won't miss something, or
I think of these are my peoplethat are my focus. So when you
decide he wants arepresentation, yeah, let's just
new coordinates go from there.
And they usually just, and ifyou're good at that, I'll go
(13:03):
ahead and send you one rightnow, when I get home or back to
the office, and you could signit. And I just always say sure
that sounds good. You're thefirst person that's talked to me
and ready also just giving me acard. No one's really displaying
how it works. And there's otherthings that we've put in that
packet. Oh, talk about, butthat's really kind of, you know,
in a nutshell, how it works.
Yeah, we kind of just can'texplain, you don't have any
(13:23):
right at this moment.
Kevin Johnson (13:27):
I think that part of that is going to get a lot
easier once the new policies areenacted, because then anyone
who's a member of Nara is goingto have to have an agreement
signed, right? So it's going tobe a matter of at that point,
who I think is going to be whocan prove their value the best
who can demonstrate to thatbuyer that they are worth
(13:49):
whatever number they're puttingdown in that paper whether it be
three rabbits or four rabbits orfive rabbits.
Chrissie Wright (13:55):
That's well and you know, in my pack, and I
haven't so let's get started wehave a sheet that says sanity
Higgins and you know I'm tellingmy agents and like here's the
double purpose of the steadyhand is so that way when you
don't know how to start you saywith some another cheat probably
think that my job is basicallyto open up doors for you. While
there's a lot more than justopening up doors. Yeah, everyone
always understand that when Ipay this, you know, I list my
(14:18):
property I understand what I'mpaying for I'm paying to get it
on MLS I'm paying remarketing.
Yeah, I'm paying for all ofthose types of things that go
along with it, but the buyer belike well, why don't I really
paying for this is your momentto shine and and explain what
you're heading or Well, whatyou're paying for is that really
my job essentially, Starks ahard part of my job is when we
(14:38):
write the offer because when wewrite the offer, I'm going to be
negotiating inspections,disclosures. I'm gonna be
talking with the appraiser, thetitle company, you know,
attorneys, whoever, surveyors,all that's gonna play and in
general, the reason it says 70hands is because from the moment
they write this opera, themoment we get to closing day
(14:58):
Well, it usually touches onaverage about 70 hands, because
that contracts didn't go to meas your agent, and single my
broker, and it's gonna go toyou, and it's gonna go over to
the other agent, their brokerthan the lender and the
underwriter that's going to comeback. Yeah, so it's going to all
these people back and forth thiswhole time. And when you're
concerned about, oh, go intoHome Depot, or go into Hobby
(15:19):
Lobby or talking to yourneighbor, because you're excited
about decorating the home thatyou're buying, or the changes
that you're going to make, yourfocus can be all of that my bulk
is, is going to be on thistransaction and getting it from
that contract to closing. Andthat's what you're hiring me to
do. And essentially, that's whatthe seller generally is paying
me to do on your behalf. And sothat's what this means is that
(15:43):
you want me to represent you andget you from that contract to
that closing table and make itseamless to where you don't even
know what's really going on. Buton the concierge bond and saying
exactly.
Kevin Johnson (15:55):
So how do you coach agents to help them
understand how important thesedocuments are for them and their
business and the benefits thatthey have by having these
documents in place? And how theyoutweigh any perception of any
cons that might be out there?
Chrissie Wright (16:13):
Well, I mean, first of all, I tell them, yeah,
and I think they're great.
Here's the deal. Up until youhave the buyer's rep, you
essentially allowing the sellerto say what you're gonna make,
that you're allowing them topick what you're going to buy,
this allows you to say, This ismy value, this is my worth.
Yeah, I'm not worth one rabbit,I'm not going to do it for one
rabbit. So I expect threerabbits or two rabbits or four
(16:34):
rabbits whenever this is what Iexpect. And this is what I put
it in my Myers rep. So you'vegot to think of that, like what
is your pay, this is notsomething you're trying to do
for free. So the beauty of abuyer's rep is it allows you to
kind of set the tone of yourvalue. I think I've told you
before Kevin, that, you know,you can say burgers are you can
buy a burger for nine cents, youcan buy burger for $20. Not all
(16:57):
burgers are the same burgers. Soyou got to decide what your
value, yeah, and what kind ofburger you're going to be. And
then you've got to be able toset I mean, and when you signed
up for this job, you sign up forsales. I mean, everyone knows
that this is a sales job. Andit's not just selling the
property you're sellingyourself. And if you can't sell
yourself, then you might not bein the right job. And so that's
(17:18):
kind of what I explained to theagents, it's like, you just got
to understand this is what youdo. Yeah, this is your
profession. And this is whereyou go in and get present value.
And if you can sell your value,people will buy it, they're
willing to pay it. We're in ageneration more than ever, where
people will pay to havesomething dark with them and pay
for it. People make people cleantheir homes to pay people to mow
(17:39):
their yard instead of doing itthemselves. People pay people to
paint their houses. When I was akid, I'm sure when you were a
kid, that didn't happen. Peoplebuy to the outcome, sell the
mother yard themselves, theyclean the house themselves. And
still a lot of people do, but webecome more of a, Hey, I'm gonna
pay, I'm going to work a littlebit extra. So that way I do what
I'm an expert in. So that way Ican earn money to pay people
(18:02):
that can clean towels, and mowyards and do things that they're
experts at. And because I cantell you you don't want me
making house I do better to besomeone your house for you.
Because that's what I've beentrained to do. I am not a
painter and I respect peoplethat hate that are. And so I
tell the agent pest chief got abig and that's it. You got to be
willing to go in and do.
Kevin Johnson (18:25):
Yeah, it's you don't want me painting your
house either. No, it's not me.
I'm good at what I do. Butthere's a lot of things I'm not
good at. And I'm okay with that.
No, that's not that's not mywheelhouse. So as I mentioned
earlier, there's there's aconsiderable amount that's
probably understating thisinjury of negative
misinformation and noise outthere. And, you know, one of the
(18:48):
challenges that I'm seeing isthat so many agents across the
country are buying into it,they're reading the headlines,
they're not understanding thedetails. I'm not the biggest NAR
fan in the world, fulldisclosure, but even to me, this
settlement made sense from abusiness perspective. You know,
(19:09):
other than the big companiesthat had already settled, every
other member was exposed tolawsuits. And this settlement
protects everyone. And the otheroption was bankruptcy, because
they did not have the over $5billion they were going to need
for the bond to be able tocontinue with the appeal. So I
(19:30):
applaud them for the decisionthey made. But again, the the
media is and it's verydisappointing, even respectable
organizations out there havebeen reporting this information.
So how do you coach and mentoryour team? They're in Arkansas
to kind of just tune out thenoise and stay focused. And to
(19:52):
also, you know, shepherd thecustomers and your clients
through this because they'reseeing the same thing the agents
are How are you helping themnavigate this
Chrissie Wright (20:03):
I think a lot of it is just education I think
you know
Up until you have a buyer's rep you
(00:02):
essentially allowing the sellerto say what you're gonna make
that you're allowing them topick what you're going to buy.
This allows you to say, This ismy value. This is my work.
Welcome
Mary Thompson Hunt (00:10):
to the 121% Podcast, the podcast dedicated
to helping real estate agentstake their business from where
they are now to 121% whomotivation, education and
action. And now, here is yourhost, Kevin Johnson.
Kevin Johnson (00:28):
Jordan, welcome to another episode of the 121%
podcast. My name is KevinJohnson and today I am excited
to welcome Christy Wright ofcentury 21 portfolio Krissy. For
those that don't know you thathaven't had the privilege of
meeting you, or maybe that partof our brand and been living
under a rock. Tell us a littlebit about your story. Like how
(00:48):
did you get into this crazything we call real estate and
find yourself running one of thetop brokerages in the country?
Chrissie Wright (00:55):
I well, I guess. Yeah. So my degree was an
education. But I had my daughterwhen I was younger, and I
thought, I don't know that I wasgoing to be tracking to school
all day, you know, great bridgecares, but not for me. No May I
just don't have the patience forthat. So there was a house
across the street goes for saleby owner. That was Brenda bars.
And they were out of town. Andthey asked me to show it while
(01:19):
they're in a town. So went overthere and open up the door and
let the people in that wanted tolook at it. And then after that,
this is back in 2002. They'relike, Oh, are you hosted? I did.
I was like, No, I'm not a realestate agent. Maybe I should go
to real estate school. So prettymuch like the Legally Blonde
where she decides to go to lawschool, I decided to get a real
estate school. And I worked atColdwell Banker for 10 years.
(01:40):
And then in 2000. Well, I boughta cannabis insured running one
that was yeah, really only hadfive agents, it was kind of a
dying brand in our market. Andover the past 1112 years. Yeah,
we basically built it to wherenow we're the number one in the
state, and we have around101 125 agents. So I just gotta
(02:01):
say, God's like listening. Yeah,I've got great people around me
and and great sport,incorporate. And it's just been
a great run, which hopefullywill continue for another one
two years. God
Kevin Johnson (02:12):
will right. But what do they say guy Warren and
the creek don't rise. So talkabout like, you know, you've
grown this business, and it'sit's wildly successful, you're
well respected within our brand.
I mean, everybody looks up toyou. Were there any pivotal
moments in that that journeythat you just mentioned that
kind of shaped the leader thatyou are today?
Chrissie Wright (02:34):
Oh, that's Thank you very much for that
compliment. I appreciate it. Idon't know if there's one
pivotal moment, I think it'skind of like I'm one of those.
Hey, let's try it. Yeah, I neverknow, unless you try it, I
always tell my mother better totry to last and never tried at
all. So a lot of it was justjumping in, you know, be earnest
and going for it. And then alsobe willing to ask questions. I
(02:57):
mean, you know, I talked to you,I talked to a lot of brokers
around the country constantlyjust asking them questions. And
I think that's probably, youknow, it's been like dental
moment is just each time iDoctor, another broker or
another company, it's like, Ooh,I might take that, even if it's
just a little smidgen of an ideaand build upon it. And I think
that is really, I'm a bigbeliever and getting build it,
(03:20):
they will come selling more mayinstead of really focusing on
you know, the outward trying toget inward for our office and
our agents and is constantlytrying to build what we have.
Because I always think thatpeople like to be a part of
something next reason thatcountry clubs, Elks clubs, all
these. Yeah, because people likethe Arctic, somebody, and they
looked at that as something thatwhen we are a tie, they want to
(03:42):
enjoy what they're doing. And sothat's what I've been like
focus, and probably my pivotalmoment is, we're not gonna worry
about the outside, we're smartabout the inside. And then
people will come and I'm lookingfor brokers like you and others
on how,
Kevin Johnson (03:54):
yeah, that's what you know, from Louisiana. And we
have a famous dish called gumbo.
And it's kind of like, you know,it's a little bit of everything
thrown in there, right that ingeneral, I can use gumbo or
jumbo lies on the menu, you gotto ask what kind because you
never know what what you'regonna get when you get it. And
it's, it's all those littleingredients that add up to make
the very special dish. And I'vealways described my business
(04:15):
that way,
Chrissie Wright (04:17):
and you laugh at yourself. It's better to say
that because I'm like, we are amelting pot. My office is a
melting pot of agents that havecome from all different walks of
life. Just like your gumbo. Andwe're all willing to laugh at
ourselves. And we don't takeourselves too serious because I
think that's key. I think someoffices are just a little bit
stuffy. And they try and be alittle bit too perfect. And you
(04:39):
know, they get starts at the topand if I'm only black myself,
and then I'll ask themselves,that
Kevin Johnson (04:44):
our agent should laugh at themselves. Like
because I laugh at myself allthe time, like and I tell them
all the time. Go out there andmake mistakes, have fun, fail
fail often fail big. Don't failsmall. You know, if you're gonna
do it, do it. Just do it andlearn from it. But that's how we
improve. Why no today we willAre the chat a little bit
because you know, there's beensome, just a little little news
in the industry recently withjust just a smidge, just a
(05:08):
smidge with the recent proposedsettlement that the National
Association of REALTORS hasagreed to. And that class action
suit, of course, when a caveatthat that the suit, or the
settlement is still proposed hasnot been approved by the court.
They're not expecting that tillat least may. But out of that
comes two big changes. One ofthem, which is that, you know,
(05:31):
we can no longer advertise thecooperating commission that a
listing broker typically offersin the MLS like we do, now, we
can still offer it, it justcan't be advertised in this one
spot, everywhere else is good.
And then the other one that isany member of the National
Association of Realtors, whowants to work with a buyer is
going to have to have a buyerbroker agreement signed before
(05:52):
they can show properties is notgoing to be an option. Now, you
know, good brokers, reputablebrokers out there have long, you
know, champion these agreements,because it helps with
transparency, and we've beenusing them forever. It helps
make sure the customer knowstheir expectations of us and our
expectations of them is it is atwo way street. But a lot of
agents and brokers didn'trequire it. Because it wasn't
(06:16):
the it wasn't the easy way.
Right. It was you had to sitdown actually prove value. And I
know for you in your state,Arkansas, this has been
something that, you know, hasbeen a requirement for your
state law from your from yourreal estate commission for a
while now. How long ago? Was itthat Arkansas adopted this
(06:36):
position?
Chrissie Wright (06:38):
That we've always had kind of an adoption
on explain agency prior tobeginning? Yeah, that's always
since I've been a licensed agentsince 2002. So at least 20, over
20 years. I know that, you know,in our state, they had a
brochure that says this isagency and explain agency, and
they wanted that a little timeon there that you're supposed to
get your you have a solutionthat a client, they're supposed
to sign it and then you tear itoff. And you give them the
(07:01):
brochure to keep and keep alittle time basically showing
that they signed it that youthat they received it now
wherever they read it or not.
Who knows, but it was somegroup, and that it kind of
evolved where, hey, we need tospend more than just explaining
agency. We need some reps. Yeah,we need some representation
contracts, that they areactually signed off that yes, we
understand agency. But now we'reto the level that we want you to
(07:21):
be our AST we want to hire you.
And it's been around since I'man I can't remember when that
started. But at least 10 years.
I know that when I started since2001, and 2012. Yeah, we made it
very much. Yeah, it was at thatpoint, you had to have it there
was it was part of that it wasselling like you had to have it
(07:42):
prior to writing the contract.
So some agents would get itsigned, right when they're
writing their contract. But inmy office in 2012, we've decided
to eliminate recommend kind ofbiggest gap. Like let's just go
ahead and get it signed and getit done. And, you know, it's, of
course, everybody's freaking outover these changes. And no one
likes change. So people don'tlike It's like in 2015, when
(08:05):
they changed settlementstatements. And we went from
having, you know, HUD and, youknow, now we have a three day
with TRID. And all of these taxthings, everyone's freaking out.
Now, are we ever going to pick aclosing date, because we have to
wait three days, and it allworked out? I think the same
thing with these buyeragreements. And I know the
states that have not been likeArkansas, are really kind of
(08:26):
breaking out from talking toother brokers. But I think it's
gonna be the same thing, whichwe'll look back and be like,
Bob, remember 2024. And we havelimited those. So in my market,
this is just how Ebola has doneit for so long that I don't
really know any different. Andyes, then the MLS will be a
little bit different that wecan't say exactly what we're
doing, right. But in my market,that second shift over the last
(08:48):
five years, to where we don'tnecessarily see it anyways,
because we had companies comein, but lower splits. And so we
started doing some brokeragreements. And so we weren't
always getting that. That wasbeing shown me wise, a lot of
times you were still being paidmore than that was being
advertised. Because yeah, NARsaid you had to advertise
something, but you technicallydidn't advertise what you were
(09:08):
willing to pay out, you'd haveto advertise all of it if you
want to, as long as your selleragreed to that. So we've had a
lot of different things going onthat is now kind of coming into
play across the country.
Kevin Johnson (09:19):
So talking about that change a little bit, to
hear it where the offer of compmove was, is most or a lot of
MLS says you could put zero oras little as $1 for years. So
how do you how did you help youragents transition to the point
where they were putting the feethat they were expecting to get
paid on those buyer brokercommissions? Because, you know,
(09:40):
the feedback I'm hearing onlinefrom a lot of agents is that,
you know, they're worried thatwhat if they don't have the
money? It's all these negativethings, right? Instead of trying
to like, Well, how about we juststep up and prove our value? But
so how did you help your agentsmake that transition where we're
going from just an agencyagreement to here is a buyer
broker agreement, that's gonnasay you're gonna pay me X,
(10:03):
regardless of whether, you know,if they don't pay on listing
progress and patient say, you'restill gonna pay?
Chrissie Wright (10:09):
Well, I think you know, the first time is
always the hardest. And then itisn't. It's, I think for right
now I tell people, I'm a happywe're all kind of in this junior
high dating. It's like no onestudied before. And when I first
start buyers reps, it feels likeyou're in junior high, again,
you're having to ask someone,you have to go slow dance with
you, and you're breaking out andthink about it for weeks, what
actually happens. And so I feellike that's where we're at. And
(10:33):
then you get to where you'regrown up, and you're like, Okay,
it's no big deal. You just doit. So for those that are all
kind of junior high, awkwarddance stage, the best way that
we started was we kind of madeup a script of sorts, that we
kind of hang up a few thingsthat were talking white, that
way my little packets in ouroffice, and we said, here's
these packets, we want you tokeep them in your car, which is
basically going to be a roadmapfor you to go off, just like the
(10:56):
contract is new, talk toyourselves. So when you talk to
a seller and the listingagreement, you're like, Oh, this
is right, but your names recordyour address where we're at with
that, yeah, the length of thelisting agreement, and you go
through, right, and that's yourroadmap of work had been
discussed? Why they do foragents right now? Because like,
how am I gonna just walk in andsay, Hey, use me, that's kind of
(11:18):
breaking them out. So we came upwith these packets in our
packet, we basically say to him,Hey, let's show the house. At
the end of showing the housework. They want to be at the
office, the foreshore of thehouse with Bill the packet out?
And what if you had a secondelectrodes with this for you?
One thing that I want to pointout is that right now, we're
dating lots of people, I knowthat you called me about this
(11:38):
listing. But it's basically likewe're dating lots of people, and
you have no representation, whatI'd like to do is I'd like for
you to hire me to represent you.
So that way you do have somerepresentation. And then going
into it, we go on to thecontract. And we say this,
right, a year is a contract. Andwhat it is, is it basically said
that I represent you and thiscontract, and as I put, let's
(12:00):
say, three rabbits at threerabbits in this contract, saying
that that will be my payment,historically, the seller will
pay that on behalf of the buyer.
So this will probably be paid bythe seller. But in the event, if
the seller does not pay, it willjust ask the seller to pay it on
(12:20):
behalf more than write theoffer. And we can cross that
bridge when we get there. Thenthis is right here. This is
where I would prefercancellation. So if you decide
you don't want to work with mein the future, you don't have to
work with me. But basically whatthis is saying is that I
represent you. So that way I cantake you and if you're not
willing to make a commitment, Iunderstand that. But here's the
deal, I have people that arewondering, like I couldn't met
(12:41):
someone majority of my time isspent, you know, on the people
that are about listingagreements with that tournament,
or the blood buyers agreementswith. So I'm not saying I won't
still send you some properties.
But you know, I can't promisethat I won't miss something, or
I think of these are my peoplethat are my focus. So when you
decide he wants arepresentation, yeah, let's just
new coordinates go from there.
And they usually just, and ifyou're good at that, I'll go
(13:03):
ahead and send you one rightnow, when I get home or back to
the office, and you could signit. And I just always say sure
that sounds good. You're thefirst person that's talked to me
and ready also just giving me acard. No one's really displaying
how it works. And there's otherthings that we've put in that
packet. Oh, talk about, butthat's really kind of, you know,
in a nutshell, how it works.
Yeah, we kind of just can'texplain, you don't have any
(13:23):
right at this moment.
Kevin Johnson (13:27):
I think that part of that is going to get a lot
easier once the new policies areenacted, because then anyone
who's a member of Nara is goingto have to have an agreement
signed, right? So it's going tobe a matter of at that point,
who I think is going to be whocan prove their value the best
who can demonstrate to thatbuyer that they are worth
(13:49):
whatever number they're puttingdown in that paper whether it be
three rabbits or four rabbits orfive rabbits.
Chrissie Wright (13:55):
That's well and you know, in my pack, and I
haven't so let's get started wehave a sheet that says sanity
Higgins and you know I'm tellingmy agents and like here's the
double purpose of the steadyhand is so that way when you
don't know how to start you saywith some another cheat probably
think that my job is basicallyto open up doors for you. While
there's a lot more than justopening up doors. Yeah, everyone
always understand that when Ipay this, you know, I list my
(14:18):
property I understand what I'mpaying for I'm paying to get it
on MLS I'm paying remarketing.
Yeah, I'm paying for all ofthose types of things that go
along with it, but the buyer belike well, why don't I really
paying for this is your momentto shine and and explain what
you're heading or Well, whatyou're paying for is that really
my job essentially, Starks ahard part of my job is when we
(14:38):
write the offer because when wewrite the offer, I'm going to be
negotiating inspections,disclosures. I'm gonna be
talking with the appraiser, thetitle company, you know,
attorneys, whoever, surveyors,all that's gonna play and in
general, the reason it says 70hands is because from the moment
they write this opera, themoment we get to closing day
(14:58):
Well, it usually touches onaverage about 70 hands, because
that contracts didn't go to meas your agent, and single my
broker, and it's gonna go toyou, and it's gonna go over to
the other agent, their brokerthan the lender and the
underwriter that's going to comeback. Yeah, so it's going to all
these people back and forth thiswhole time. And when you're
concerned about, oh, go intoHome Depot, or go into Hobby
(15:19):
Lobby or talking to yourneighbor, because you're excited
about decorating the home thatyou're buying, or the changes
that you're going to make, yourfocus can be all of that my bulk
is, is going to be on thistransaction and getting it from
that contract to closing. Andthat's what you're hiring me to
do. And essentially, that's whatthe seller generally is paying
me to do on your behalf. And sothat's what this means is that
(15:43):
you want me to represent you andget you from that contract to
that closing table and make itseamless to where you don't even
know what's really going on. Buton the concierge bond and saying
exactly.
Kevin Johnson (15:55):
So how do you coach agents to help them
understand how important thesedocuments are for them and their
business and the benefits thatthey have by having these
documents in place? And how theyoutweigh any perception of any
cons that might be out there?
Chrissie Wright (16:13):
Well, I mean, first of all, I tell them, yeah,
and I think they're great.
Here's the deal. Up until youhave the buyer's rep, you
essentially allowing the sellerto say what you're gonna make,
that you're allowing them topick what you're going to buy,
this allows you to say, This ismy value, this is my worth.
Yeah, I'm not worth one rabbit,I'm not going to do it for one
rabbit. So I expect threerabbits or two rabbits or four
(16:34):
rabbits whenever this is what Iexpect. And this is what I put
it in my Myers rep. So you'vegot to think of that, like what
is your pay, this is notsomething you're trying to do
for free. So the beauty of abuyer's rep is it allows you to
kind of set the tone of yourvalue. I think I've told you
before Kevin, that, you know,you can say burgers are you can
buy a burger for nine cents, youcan buy burger for $20. Not all
(16:57):
burgers are the same burgers. Soyou got to decide what your
value, yeah, and what kind ofburger you're going to be. And
then you've got to be able toset I mean, and when you signed
up for this job, you sign up forsales. I mean, everyone knows
that this is a sales job. Andit's not just selling the
property you're sellingyourself. And if you can't sell
yourself, then you might not bein the right job. And so that's
(17:18):
kind of what I explained to theagents, it's like, you just got
to understand this is what youdo. Yeah, this is your
profession. And this is whereyou go in and get present value.
And if you can sell your value,people will buy it, they're
willing to pay it. We're in ageneration more than ever, where
people will pay to havesomething dark with them and pay
for it. People make people cleantheir homes to pay people to mow
(17:39):
their yard instead of doing itthemselves. People pay people to
paint their houses. When I was akid, I'm sure when you were a
kid, that didn't happen. Peoplebuy to the outcome, sell the
mother yard themselves, theyclean the house themselves. And
still a lot of people do, but webecome more of a, Hey, I'm gonna
pay, I'm going to work a littlebit extra. So that way I do what
I'm an expert in. So that way Ican earn money to pay people
(18:02):
that can clean towels, and mowyards and do things that they're
experts at. And because I cantell you you don't want me
making house I do better to besomeone your house for you.
Because that's what I've beentrained to do. I am not a
painter and I respect peoplethat hate that are. And so I
tell the agent pest chief got abig and that's it. You got to be
willing to go in and do.
Kevin Johnson (18:25):
Yeah, it's you don't want me painting your
house either. No, it's not me.
I'm good at what I do. Butthere's a lot of things I'm not
good at. And I'm okay with that.
No, that's not that's not mywheelhouse. So as I mentioned
earlier, there's there's aconsiderable amount that's
probably understating thisinjury of negative
misinformation and noise outthere. And, you know, one of the
(18:48):
challenges that I'm seeing isthat so many agents across the
country are buying into it,they're reading the headlines,
they're not understanding thedetails. I'm not the biggest NAR
fan in the world, fulldisclosure, but even to me, this
settlement made sense from abusiness perspective. You know,
(19:09):
other than the big companiesthat had already settled, every
other member was exposed tolawsuits. And this settlement
protects everyone. And the otheroption was bankruptcy, because
they did not have the over $5billion they were going to need
for the bond to be able tocontinue with the appeal. So I
(19:30):
applaud them for the decisionthey made. But again, the the
media is and it's verydisappointing, even respectable
organizations out there havebeen reporting this information.
So how do you coach and mentoryour team? They're in Arkansas
to kind of just tune out thenoise and stay focused. And to
(19:52):
also, you know, shepherd thecustomers and your clients
through this because they'reseeing the same thing the agents
are How are you helping themnavigate this
Chrissie Wright (20:03):
I think a lot of it is just education I think
you know
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