The Inverse Commission™ Model: A New Paradigm in Real Estate

Introduction to the Inverse Commission™ Model In the traditional real estate model, agents often earn a commission based on a percentage of the final sale price. While this structure can work well in many cases, it creates an inherent conflict of interest: agents may benefit financially when buyers pay more. To address this issue, the Inverse Commission™ Model was designed to realign agent incentives, putting the buyer’s needs first. How Inverse Commission™ Flips the Traditional Model The Inverse Commission™ Model rewards agents for negotiating lower prices for their buyers. Instead of being paid based on the sale price, agents earn…

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inverse commission - elements of negotiation

How the Inverse Commission™ Model Solves Rare Cases of “Unnecessary Costs” in the Buyer Agency?

Traditional Buyer Agency compensation models can unintentionally create awkward situation of conflicts of interest, particularly when it comes to the buyer’s closing costs. Certain incentives offered by providers for selling services to the buyers. Most of these services are necessary, but in rare cases, they may be tagged as "unnecessary" costs. Why a NEGOTIATOR® cannot be accused of such practices? NEGOTIATORS® are systematically Incentivized To Eliminate Unnecessary Costs: "Inverse Commission" or "Commission on The GAP". 1. The HEV (Highest Estimated Value) Accounts for All Costs. The HEV includes all costs related to the deal, ensuring total transparency. This is why…

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Inverse Commission™: By Nature a Decoupled and Buyer Centric Compensation Model

The Department of Justice (DOJ) has been increasingly vocal about its concerns regarding traditional real estate commission structures. These concerns center around the potential for anti-competitive practices and conflicts of interest that can harm consumers. In response to these concerns, innovative models like the Inverse Commission™ are emerging, offering a refreshing alternative that prioritizes transparency and client advocacy. What is the Inverse Commission? Inverse Commission is a revolutionary compensation model that aligns the incentives of buyer agents and brokers (NEGOTIATORS®) with the interests of home buyers. In this model, agents earn more when they negotiate a lower price for their…

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inverse commission vs traditional commission

Inverse Commission vs Traditional Commission

In low-inventory or seller-dominated markets, NEGOTIATORs® may not always be able to push the price down significantly due to competitive multiple-offer scenarios. However, what they can do is provide a strategic advantage through transparency, trust, and value-driven guidance. For instance, let’s break it down with an example. Scenario: Low-Inventory Market (Role Model Comparison) Listing Price: $1,000,000 Market Situation: 3 competing offers, requiring a budget of $1,100,000 to win the deal. 1. NEGOTIATOR® Approach: NEGOTIATOR®: "My compensation model is based on the Inverse Commission structure, where I get paid 50% of what I save you. To help you secure this home, I’ll ask for 2.5% to be…

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What did we aim to achieve with the Paris Paradigm™ and NEGOTIATOR® models?

This is a brief overview of what we’ve been working on for the past couple of years, give or take. A consistent model to bring strong value to Buyer’s Agency around the world. This carries more meaning in the current legal climate in the U.S. and Canada. What did we aim to achieve with the Paris Paradigm™ and NEGOTIATOR® models? 1. Creating the first-ever Performance-Based model for Buyer's agency. Seller’s Agency has always been performance-based - the higher they sell, the better for them and their client. Interests aligned. No question. But Buyer’s Agency getting paid based on the total…

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How the NEGOTIATOR® Model Can Prevent Steering in Real Estate

In the real estate industry, one of the primary issues at the root of recent litigation is the phenomenon of steering - the practice where some agents or brokers guide buyers toward properties with the highest commission payouts. Steering not only raises ethical concerns but also diminishes buyer autonomy and can skew market competition, limiting options based on agents’ interests rather than buyers’ needs. The Paris Paradigm™, particularly through its innovative NEGOTIATOR® model, addresses this challenge directly. Here, we explore the key factors that differentiate the NEGOTIATOR® model from traditional paradigms and how it is designed to eliminate steering entirely.…

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Buyers are often under-represented in the real estate market!

If you're a buyer who has already found a house through the internet, we want to know: which approach do you think is the most convincing and why? 🤔💭 🔍 Share your thoughts in the comment section! 💬 Your insights could help shape the future of buying homes! 🏠💡 💥 Plus, don’t forget to share this poll with your network! 📢 One lucky re-post voter will win a USB-C power bank! 🔌⚡️ Let’s get the conversation started! 🚀 Which elevator pitch is most convincing for a buyer to accept representation, and why? (Share your thoughts in the comments!) ⏰💵>> Hourly Rate 🔄💰>>…

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How the NEGOTIATOR® Model Can Elevate Your Real Estate Career!

A webinar with Terri Murphy about weekly tips on how the NEGOTIATOR® role in the Paris Paradigm can transform your approach in real estate. Today, we are joined by the insightful industry legend John Reilly (author of The Language of Real Estate), and Eileen O'Driscoll, Real Estate Broker, a top broker-manager and board advisor for our company! ✨ What Makes This Model Unique? Our goal? To shift the focus to higher-level negotiation strategies that serve both buyer and seller ethically and transparently. The Paris Paradigm combines two roles - the NAVIGATOR™, who helps clients view properties, and the NEGOTIATOR®, who…

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Gearing up for the NEGOTIATOR® experience coming your way!

Mark your calendars now! Every Tuesday at 12:00 EST the Data Advocate and NEGOTIATOR® Team host a webinar on the latest innovations to handle residential real estate transactions under the “new norm.” Our hosts today were our TDA team: John Reilly, Saul Klein, and me (Terri Murphy) along with Eileen O'Driscoll, Real Estate Broker Broker/Owner from C21/Concept 100 in Oradell, N.J. and Giselle Abadi, Co-Founder of Realtyna sharing insights on the Inverse Commission™ strategy that was born in Paris, France. The insights from this diverse team help agents experience options “outside the traditional” protocols for compensation in transactions to a new and…

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What Is Inverse Commission™?

One big reason for buyers to be represented! Inverse Commission™ flips the script on traditional real estate commissions. Instead of agents being rewarded for higher selling prices, they're incentivized to negotiate the best possible deal for the buyer. The better the deal, the higher their compensation. It's that simple and transparent. 🏠 Buyer and NEGOTIATOR® Alignment Discover how the Inverse Commission™ model aligns the interests of buyers and their NEGOTIATORs®, ensuring that your agent is fully motivated to secure you the best price possible. With compelling examples and easy-to-understand animations and webinars, we'll show you why this approach results in…

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