BBA

We once had an In-House photographer by the name of Isis. Very sweet and talented lady.  In ancient Greece, Isis was an Egyptian Goddess.  But for the older lady who heard Isis was coming into her gated community, it caused all sorts of commotion and a cancelation of a session. 9/11 was not good for people named Isis.  Karen is another one having a bit of trouble right now.  My banker is Felicia, and I just love saying, “Bye Felicia”.  Then there is Sue.  Not so much today, but Sue was and still is a bad ass. Sue is the largest Tyrannosaurus Rex ever discovered. Sue is displayed in the Field Museum in Chicago. I stopped over last weekend in Chicago on my way to a Zillow real estate conference – I met up with some childhood friends, took in a Bears game, and visited Sue. 

The highlights of the conference were going over real estate statistics and projections for 2025. Much of this I covered a few weeks back. Projections are for a 5.1% uptick in activity overall. That’s not much considering 2024 is at a 30 year low. Some activity will be slower in areas where there is little inventory and little demand.  Probably a bit more activity in our area due to more inventory now and still lots of demand. My guess is we will see a 10% uptick in activity. Buyers are waiting right now for the election to be over and a bank rate drop by the Feds that will lower their mortgage rate. Forecasts though are mortgage rates aren’t going down much more as they are not exactly related. I talked about some of that last week.

The other big topic that was conferred were BBA’s. BBA stands for Buyer Broker Agreement.  18 states previously had BBA’s. Buyers and their agents had to have an agreement of representation signed before showing homes.  Florida never had one but now we do.  As a matter of fact, all 50 states with agents in the NAR now do. We Realtors are now getting used to them because they have been in effect since August 17^th.  Consumers are starting to get the hang of it but many are still confused. With season coming up, let me try to help so you don’t get shellshocked or think the Realtor is trying to pull a fast one over on you.

The way you have been shopping since oh the Mesozoic Era, is now extinct like Sue.  Don’t expect to run around with multiple Realtors and not expecting to commit to someone. The Realtors can’t even do it. We face a hefty $5,000 fine and potential loss of our license.   The nice thing about BBA’s is that it forces everyone to have a discussion about expectations and compensation up front.  You now will know exactly what you are getting from your Realtor. We as Realtors also have certainty of compensation now. Buying is still typically on contingency of purchase but the BBA’s are more like listing agreements.  Listing agreements are needed because the Brokerage or Realtor is spending time and money. Buyers’ brokers do the same but just differently.

Here is what to expect and what you should do. First understand what your Buyer’s agent does – and that begins with a meeting instead of just shot gunning the first get together at the house. Either meet at your home if local or at our office or over zoom.  Plan to spend a minimum of a half hour to an hour.

First we ask a lot of questions and then more questions to understand what you want and need. I wrote 2-20 page pieces on the matter.  I shared both a few weeks back. “Nobody Reads This” goes into detail and is divided into 18 chapters and 151 items of everything a Realtor does from start to finish. The other piece, “Everybody Reads This”, dives into a visual flowchart, cost expectations, and critical sites.  We go over this much more in that initial meeting.

At this point we can start narrowing down what you like best.  Sometimes it’s exactly what you think it is but oftentimes we end up breaking down other possibilities.  Getting you familiar with our AS-IS contract, how offers work, money down, speed importance, financing, seasonality, insurance, state of the market, and strategies are just some of the critical things we go over.

For us BBA’s have also weeded out time wasters. We don’t mind spending time with someone who will stick with us.  One of my favorite past clients would look with me each year. She was never quite ready but on the 5^th year she and her husband found the perfect house which they have been in for fifteen years now. It’s the folks who are bouncing all over the place going from one Realtor to another who are now being revealed. That’s maybe ok for them but try to put yourself in our shoes. It’s not what we are looking for. Doctors get paid after a visit. Lawyers after they work based on their hourly rate. Fireman, police, teachers, roofers, and restauranters all get paid after giving their service. Some are on contract. Some, like in restaurant business, get paid after the meal is concluded. We could show 30 homes to someone with lots of back and forth setting up and educating only to find out they purchase with another realtor at the last second. For a job with no health insurance, 401k, no vacation time, and lots of uncertainty, its heartbreaking.  Realtors today now have some expectation that for the work provided that there will be a certain commitment.  That is why the initial meeting is so critical.

BBA’s should be for some length of duration. It takes time to help learn the area, and show other possibilities. Many times we may advise you to pass on a deal and wait.  It’s difficult to schedule when the right deal is available so you have to give your Realtor time. If you don’t, you are incentivizing your Realtor that if they don’t find you a home, then they won’t get paid.  Not everyone will have that attitude but you’ll eventually burn yourself if you demand to have a Realtor on a short leash.  Realtors are also being picky now about who we work with. People who give us a commitment are going to get more service and dedication than someone who wants to work with everyone.

At ECHO, we only hire full time real estate agents. Our agents have all been vetted and they all take it seriously with constant training and education.  We work as a team unlike other agencies where all costs are borne on the agent themselves. Our team approach frees up lots of time so they can concentrate on you. Our Agent Specialists,  Client Concierge, Closing Coordinator, Sales Manager, and yours truly collaborate throughout the process for each client. A team approach with very Fine People matching you with very Fine Properties is the only way to go. Realtors who are jacks of all trades, are just extinct these days!

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Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.