Praful,

Having fear of getting what you need for a successful transaction may be an indicator that you are in the wrong business.  You cannot be fearful in real estate,  A

When I use, Buyer Agency Agreements, I always discuss how I will be paid.

 It is much more common for me to act as a consultant for someone in another country and then I discuss whether I will receive a referral from an agent or whether I will be charging my client a consulting fee and how much it will be.

For the most part, have not had a problem with Buyer's Agency, and only once did it become a problem and only because they were from a state that usually did not sign these.

As the author of some of those recent questions  here's what we do.

1. We always use a Buyer Broker Agreement.

2. The amount we stipulate as our minimum compensation is equal to what we offer as co-broke on our listings (the Seller approves that amount).

There is no reason not to be upfront in discussing compensation. We should not be ashamed of the fact that we don't work for free. If you go to a lawyer or an accountant or a doctor, they will tell you their fees up front.

Good morning Praful. Why would anyone be afraid to share how much they are going to be paid?

I discuss agency and what I offer, they sign something saying they understand. I do not make them sign a BBA, I earn their loyalty and have them sign it at the time they are making an offer.

I do discuss with my buyers how I get paid. I don't charge a success fee. If the situation came up where no commission was being paid on a property, I would have that discussion with my buyers. 

That's part of the first conversations with the client.

Normally my compensation is from the co-broke, but when it's too low, I ask buyers for commission, they have only agreed once. But then they didn't want to see the listing either. 

Most of the time the co-broke is acceptable and I get 95% of my buyers to sign a buyer agency agreement. I cannot think of but maybe one time in 35 years that I was disappointed with the compensation.

This is a very important issue to bring up right away

Not sure how anyone can be a successful buyers agent if they are afraid to talk about an exclusive buyers agent agreement. 

Your clients do expect to pay you, and there is no shame in sharing this info with them.

Praful,
Co-broker commission here is very predictable. I explain that the seller has committed to pay the listing agent and listing agent through the MLS will pay me. Never a problem.

The Buyer Representation Agreement or Buyer Customer Service Agreement has clauses to deal with the compensation issue.  I explain how the compensation works.

Yes, I do discuss it, and at the end of closing, while we are still in the room by ourselves I show them my check and thank them, because they gave it to me.

Praful Thakkar Buyer Broker Agreements are mandatory in my State. This gives an opportunity to talk about compensation should the seller not pay a fee. It is discussed as part of the BBA.

I don't look at the Buyer Agency Agreement as 'how I get paid' as much as I look at it as a loyalty agreement that sets the expectations of both parties (myself and the buyer).  While I would like to get $xxxx on every sale, I know that in the long run it all evens out.

We merely identify that the seller pays us. Amounts should make no difference, however, if asked specifically; we do disclose.

I only charge what is offered as co-op fee.

I don't talk how much I make with buyers unless they ask me how do they pay me.  If this comes up I simply explain how real estate works in NM. 

Praful - I get paid through the co-broke, and my job is to find my clients the best home for them. It has nothing to do with how much money I will make on the transaction.

If the co-broke is virtually nothing, then that is what I will get paid, but when the co-broke is more than a typical percentage (or the listing agent is offering a bonus) I don't complain about that either.

I use buyer broker agreements, but I don't discuss with the buyer how much I SHOULD be paid because it is the selling brokerage that pays me. 

im sure glad we dont have to deal with that much out here...99% of listings are 2.5>3.0 each end. sometimes more. no need for those discussions

Praful Thakkar This is an excellent important question.

Full disclosure and a complete explanation of the process is a very good policy. Avoiding surprises and unknowns is good for relationships.

This is not the first topic of conversation as it is more important for me to gain a repor and show value first...

we are listing agents and we always pay the buyer agent.... 

Regardless of the co-op compensation I would never expect a buyer to pay my commission.  I explain that when I go over the buyers rep; however no buyer rep I will not work with them.

My commission for the most part is co-broke; occasionally with a buyers agreemant part or all may come from the buyer.

#2 Use buyers agreement

#3 It is didcussed twice; once at the first meeting and then when making an offer.