Note: This article is part of a thought leadership series by members of the Relocation Directors Council (RDC).
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of WERC.
As relocation directors, we recognize the vital role relocation management consultants play in ensuring a seamless experience for corporate transferees. That’s why the Relocation Directors Council (RDC) recently hosted a one-hour webinar to help our partners in the relocation industry strengthen their understanding of how to collaborate with real estate brokers during the relocation process effectively.
Moderated by Betsy Roche, CRP, with Weichert Realtors and featuring expert panelists Michelle Solly, CRP, GMS, with Berkshire Hathaway HomeServices Professional Realty; Lorna Magers, CRP, with Coldwell Banker Realty; and Harold Decena, CRP, GMS, with Ebby Halliday, this webinar explored critical components of working alongside real estate agents to ensure smooth, efficient moves for transferees. Participants walked away with practical strategies and actionable insights on everything from the ins and outs of real estate transaction timelines to understanding how broker compensation works and utilizing buyer broker agreements (BBAs).
During the webinar, our panel addressed some of the most pressing questions facing relocation consultants when working with real estate brokers. Below are the key takeaways from the discussion:
Real Estate Compensation: Are They Justifiable?
A common concern is the high compensation earned by real estate agents, especially when the average sales price of a home in the U.S. is over $419,000. Panelists discussed how the compensation structure is not as straightforward as it may seem. Reality TV shows make it appear they quickly close deals after showing just a few homes. However, behind the scenes, agents face significant financial risks, including marketing fees, errors and omissions (E&O) insurance, licensing fees, and business overhead costs. Additionally, agents typically split the compensation with their brokers and may have to pay referral fees, desk fees, marketing fees, or other expenses.
The Benefits of Working With a Network Agent
While transferees may request specific agents not part of a relocation management company’s (RMC’s) preferred network, the panel emphasized the advantages of working with agents from a network broker. These agents have access to specialized training, marketing tools, and technology that support relocation processes. RMCs often recommend working with a preferred agent, as they are better equipped to handle the unique needs of a corporate transferee, and they have the added support of dedicated relocation staff to offer their expertise and assistance.
Using requested agents even within a preferred brokerage can present significant challenges. Affiliation with a broker that has a relocation department does not automatically mean the agent is trained, qualified, or suited for relocation transactions—many are not part of the team for various possible reasons. These agents may also lack key qualities like responsiveness, attention to detail, or the right personality for handling relocation customers. Accepting them simply because they are requested can introduce unnecessary risk and compromise service quality. It is essential to consult the relocation director to assess whether the agent is a good fit for the transferee’s needs, the corporate client, and the relocation program overall.
The Role of a Relocation Director or Department
The webinar also explored the role of a relocation director or department. Relocation directors act as liaisons between the RMC and real estate agents, providing a layer of expertise. Their responsibilities include managing customer communications, selecting and training relocation specialists, and ensuring follow-up to keep the process on track.
Educating Transferees on Buyer Broker Agreements
Since August 2024, buyer broker agreements (BBAs) have become a standard in real estate transactions across all 50 states and U.S. territories. The panel discussed how agents are educating buyers about these agreements, which outline the agent’s role and compensation. It’s crucial for relocation consultants to introduce the BBA to a transferring employee and work in tandem as the agent will clearly explain the terms of the agreement to transferees, ensuring they understand why they need to sign and what their commitment entails.
The Real Estate Agent’s Role Beyond Showing Homes
A real estate agent’s job goes far beyond showing properties, especially in relocation. They help identify areas that best fit the buyer’s lifestyle and needs, taking into account factors like commute times, school districts, and price points. As full-time professionals with deep ties to the local market, relocation agents often have early insight into listings—sometimes even before they appear on public sites—and can help buyers move quickly when the right property comes along.
Beyond finding the home, they schedule and coordinate showings (including virtual tours), craft competitive offers, and negotiate effectively with listing agents and their sellers. They explain contract terms in detail, guide clients through multiple-offer situations, and assist with reviewing inspections and disclosures. Once under contract, they closely monitor the timeline to ensure all requirements—such as inspections and mortgage approvals—are met, helping to avoid delays and keep the transaction on track. Their expertise streamlines the process, reduces stress, and ensures a smooth transition for relocating buyers.
Challenges Faced by Agents and Selling Their Value
The real estate market has faced a few challenges since the introduction of new rules. These include issues like buyers being able to cancel agreements at any time, reluctance from builders to cooperate with buyer agents, and the RMCs not teeing up the BBA early enough with transferees. Despite these challenges, agents have continued to emphasize their value by offering expertise and personalized service to ensure the best possible outcomes for their clients.
Understanding Compensation Structures on the Listing Side
On the listing side, some listing agreements specify the amount the seller is willing to pay a buyer’s broker, while others leave this open or make no mention of it. Some brokers may advertise on their website or other marketing materials the amount that the seller is offering, while others do not. The rules surrounding these compensation amounts vary by state and brokerage, creating a situation where things can feel unpredictable—“the Wild Wild West,” as one panelist described it. It’s essential to understand these regional and company-specific differences when working with brokers and transferees.
On behalf of the RDC, we hope this article serves as a valuable refresher, equipping readers with the key insights and tools necessary to support relocation consultants and cultivate stronger, more effective partnerships with real estate professionals.