Inverse Commission Spectrum

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 property price? Not that much buyer-friendly! This is what we call unintentional conflict of interests.

2. Creating a system that rewards true professionals.

This model ensures that dedicated, skilled agents earn what they deserve for their expertise and commitment.

3. Providing a compelling reason for buyers to seek representation.

With the Inverse Commission™, buyers finally have a reason to feel they aren’t overpaying for service. The more I save for you, the better I get paid. If I don’t save, I close the deal without charging a dime!

4. Separating the roles/payments of Listing Agent and Buyer’s Agent.

With the Inverse Commission™, NEGOTIATORS® (i.e., Buyer’s agents) are no longer “collaborating” with listing agents with the same financial interest. They’re negotiating from the other side of the table with inverse monetary interests.

5. Giving buyers a systematic reason to trust their agent.

Now they have it. Their representative is paid in a way that benefits them directly. Ethics and morals don’t have to be the primary foundation of trust; the NEGOTIATOR®’s compensation structure speaks for itself.

6. Ensuring Buyer’s Agency can prove their commitment to their fiduciary duty.

What better evidence than motive?
“I did my best to secure the best deal for you for your property of choice—because if there were room to do better, I’d do it to get paid more!”

 

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.

The Core Differences Between NEGOTIATOR® and Traditional Models.

Several elements set the NEGOTIATOR® model apart from the traditional real estate approach, and these elements collectively work to prevent steering.

Property-Specific Contracts: Ensuring Buyer-Driven Choices

In the traditional model, buyers’ agents are often verbally contracted to show multiple properties, with their compensation based on the final sale. This structure allows room for steering, as agents might subtly prioritize higher-commission listings. In contrast, the NEGOTIATOR® model requires agents to enter property-specific contracts with the buyer.

In the Paris Paradigm™, buyers independently select the property they are interested in before the NEGOTIATOR® steps in to negotiate on their behalf. By focusing on a certain, buyer-chosen property, there is no room for steering since the buyer’s choice is finalized before negotiation begins. This shift ensures the buyer’s preferences are primary, minimizing any external influence on the decision.

Inverse Commission Structure: Transparency in Negotiation and Compensation

Unlike the traditional commission model, where agents’ earnings are a percentage of the property’s sale price (potentially motivating them to close higher-price deals), the NEGOTIATOR® model introduces an Inverse Commission™. This model aligns the agent’s compensation directly with savings they secure for the buyer, known as the GAP. The larger the savings achieved, the greater the NEGOTIATOR®’s commission, incentivizing them to negotiate the best possible terms for their client.

The Inverse Commission™ is transparent: the buyer is informed of the exact GAP in each property negotiation and understands precisely how the NEGOTIATOR® will be compensated. This structure makes the NEGOTIATOR®’s financial motivation clear and directly aligned with the buyer’s interest in a favorable purchase price, with no hidden fees or incentives.

Unlike the traditional model, where the buyer agent’s compensation based on the total property price could conflict with the buyer’s interests, the Inverse Commission model fully aligns the interests of the buyer and their agent (NEGOTIATOR®).

The Inverse Commission™ vs. Traditional Model

In the traditional model, a real estate agent’s compensation is set in advance, prior to negotiations, which often contributes to steering. In contrast, the Inverse Commission™ model offers a fully transparent compensation method, clear to both the buyer and the NEGOTIATOR®. However, the final amount is determined by the NEGOTIATOR®’s efforts and is calculated post-negotiation.

The NEGOTIATOR® Model and Buyer-Driven Bidding

In the NEGOTIATOR® model, because the Highest Estimated Value (HEV) can be validated through a buyer-driven bidding process, properties with a high potential for discount or GAP become transparent to the buyer and will not be the target for the steering. This process effectively normalizes the HEV through competitive bidding, placing downward pressure on inflated values and high GAP properties. This will ensure, NEGOTIATORs® are not over compensated and their advice to the buyer is driven by a normalized and logical potential for the compensation.

How the NEGOTIATOR® Model Restores Buyer Trust and Market Transparency ?

By eliminating the agent’s control over property selection and aligning their compensation with buyer savings, the NEGOTIATOR® model fosters a more transparent, buyer-centered real estate process. Buyers can be confident that their agents are negotiating on their behalf without any hidden motives. The combination of AI-guided navigation and the Inverse Commission™ model sets a new standard in real estate, focusing squarely on buyer satisfaction and ethical agent conduct.

In an industry that has faced scrutiny over steering practices, the Paris Paradigm™ offers a solution that not only empowers buyers but also holds agents to a higher standard of transparency and integrity. This model not only addresses past criticisms but also positions real estate transactions to be more equitable and buyer-focused in the future.

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 ensures buyers get the best deal possible.

Eileen shared a powerful example of a young buyer who missed out on a property by going directly to the listing agent. This is a common misconception – thinking that bypassing a buyer’s representative will work in their favor. But here’s the truth: without a dedicated NEGOTIATOR®, the buyer might end up paying more, since the listing agent’s responsibility is to the seller.

🔹 Key Benefits of the Paris Paradigm™:

  1. Buyer Control: Buyers can select a property with a NAVIGATOR™, then choose a NEGOTIATOR® to advocate specifically for them.
  2. Performance-Based Pay: The NEGOTIATOR® earns more as they save the buyer money, fully aligning their interests with the buyer’s.
  3. Education & Training: We’re creating a certified NEGOTIATOR® program that trains agents to represent buyers in a transparent, results-driven way.

As John Reilly pointed out, this model is all about empowering buyers through choice and transparency. The NEGOTIATOR® model shifts from being transactional to relational, building trust that lasts well beyond the sale.

Curious? Check out informative videos to learn more about this new approach that’s reshaping real estate.

NEGOTIATOR®

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 advanced process of assisting buyers (and sellers) with their expertise using a unique Negotiator process when negotiating transactions.

In the wake of recent lawsuits, huge settlements, federal and state regulations, the words of San Diego MLS Saul Klein ring true: “Digitization means that tomorrow won’t look like yesterday.”

Major changes in practice are taking place now as more negotiations are required between seller and listing broker; between buyer and buyer brokers; and between buyer and seller at the purchase table. Expect intense competition to occur among brokers jockeying to win the exclusive representation agreement on the buyside, just like listing brokers have always sharpened their presentation skills to win the exclusive listing contracts on the sellside.

Saul Klein and John Reilly offer guidance on how to integrate the new buyside negotiation skillsets into your practice.

Tune in every week on Tuesdays at noon EST for the latest updates.

For more information, check this video.

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 happier buyers and more motivated agents.

💡 Why It Works

  • Save More: Learn how NEGOTIATORs® leverage their skills to reduce the purchase price, directly benefiting you, the buyer.
  • Transparent Motivation: Understand the clear and ethical motivation behind every negotiation, fostering trust and confidence.
  • Performance-Based Rewards: See how agents are rewarded for their hard work and negotiation prowess, not just the sale.

🎬 What’s Inside This Animation?

  • A step-by-step breakdown of how Inverse Commission™ works.
  • Insights into why this model is the future of real estate transactions, specially for buyers’ side.

✅ Whether you’re a first-time homebuyer, looking to invest in property, or a real estate agent ready to adopt a model that truly values your negotiation skills, this animation is for YOU!

Remember, with the Inverse Commission™ model, everyone on the buyer side wins.

 

Commission on the GAP

Understanding the Inverse Commission™: NEGOTIATOR® and Commission on the GAP

In real estate, traditional commission structures unintentionally misalign the interests of agents and buyers. But with the NEGOTIATOR® model powered by Commission on the GAP, we’re flipping the script.

Here’s how it works:

  1. Close Price: The final sale price of the property, which can often be negotiated lower than the list price, especially in a buyer’s market. This means more savings for the buyer.
  2. List Price: The seller’s asking price. In traditional models, this price often dictates agent commissions, meaning agents may push for higher closing prices. But with Paris Paradigm’s NEGOTIATOR®, the focus is different.
  3. HEV (Highest Estimated Value): The maximum estimated market value for the property by NEGOTIATOR® and agreed by buyer. The NEGOTIATOR® aims to close below this value, securing the best deal for the buyer.

💡 The Commission on the GAP or Inverse Commission:

Instead of earning more when the property sells for more, the NEGOTIATOR® earns commission based on the difference between the HEV and the final close price. The lower the close price, the greater the buyer’s savings—and the NEGOTIATOR® benefits when buyers do. This model guarantees alignment of interest between the agent and the buyer, resulting in better deals and more transparency.

In contrast, if the close price exceeds the HEV, a negative gap occurs, meaning the buyer may be paying more than necessary, and the NEGOTIATOR® may not receive commission at all if the deal exceeds the HEV (Highest Estimated Value by NEGOTIATOR®).

💬 Why It Matters: In a market where buyers seek the best terms, the NEGOTIATOR® offers a unique value. The focus shifts to securing the best price for the buyer—not simply closing the deal quickly. By aligning the agent’s interests with the buyer’s, we ensure fair, transparent, and effective negotiations.

🧐 Want to learn more about how this can change real estate transactions? Join us for the next webinar and share this page with your colleagues.

 

Become a NEGOTIATOR®: A New and Exciting Career in Real Estate

The NEGOTIATOR® is a groundbreaking new role in real estate, offering professionals a chance to specialize in securing the best deals for buyers. Unlike traditional real estate agents, who focus on both listing and selling properties, the NEGOTIATOR® is laser-focused on negotiating the best price and terms for buyers. This means your job is not just about closing deals—it’s about ensuring that buyers get the best possible outcome.

What makes this role different?

  • Innovative Compensation: NEGOTIATORs® get paid differently through the revolutionary Inverse Commission™ model, which aligns their financial incentives with the buyer’s goals. The better the deal you negotiate for your client, the more you earn—reversing the traditional commission structure where agents earn more when buyers spend more.
  • Specialized Focus: NEGOTIATORs® don’t juggle both sides of the transaction. Instead, you work exclusively on behalf of the buyer, giving you the freedom to focus purely on negotiation and securing the best possible terms.
  • Flexibility: NEGOTIATORs® can be part of any existing brokerage. Whether you’re a seasoned agent looking for a more rewarding role or new to the real estate industry, the NEGOTIATOR® position fits seamlessly into any brokerage or independent operation.

 

Why choose to become a NEGOTIATOR®?

  • High demand: As buyers become more informed and savvy, they want a professional who works solely in their best interests.
  • Competitive advantage: You’ll stand out from traditional real estate agents with a role that is tailor-made for today’s market needs.
  • Unique compensation: Your earnings are based on the value you bring to the buyer, creating a win-win scenario that rewards great negotiation skills.

Step into the future of real estate with a role that is built for success, fairness, and innovation. Become a NEGOTIATOR® today and redefine what it means to work for your clients.