INTERVIEW: Broker Bryant of Poinciana, FL

by Brian Brady

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Bryant Tutas, the most well-known author on the Active Rain Real Estate Network, was kind enough to grant me an interview. I have known Bryant since I signed up for Active Rain some six months ago. He is a serial contributor there, posting, commenting, and offering both insight and encouragement. Bryant and his wife (The Lovely Wife) are the owners of Tutas Towne Realty in Poinciana, FL. Bryant is the broker and sole practitioner while “The Lovely Wife” manages their properties.

Bryant, you were involved in commentary with Candybags, on Bloodhound Blog, some time back and followed up with a post asking “So, What Do You Do To Justify Your Commission?“. How do you think Realtors who host or comment on weblogs should prepare themselves to answer this question?

Brian, I think the question, “What do you do to justify your high commission?” is a valid question. REALTORS? need to be prepared to answer it. In this age of disintermediation, it is time for REALTORS? to really think about what it is that we do. We need to be able to communicate this to the consumer. We are paid for what we bring to the transaction and not what we do. I bring my reputation, experience, knowledge of the market, ability to be a calming force, skill at keeping folks focused on the end result, willingness to tell people what they need to hear (not what they want to hear) and my expertise at pricing properties correctly. None of these attributes can be received via the Internet. That, is what our value is. These intangibles cannot be quantified by a dollar amount.

How do you think the commentary could have been handled better here on BHB?

Candybags was rude and very hostile towards REALTORS? but he did ask a reasonable question. I prefer to try and win people like this over than to further instigate their aggression. I have learned over the years that aggression is best handled with patience and reason. I never take someone’s comments personally. There is always a reason why people act the way that they do. I make it my goal to find out why and then do my best to put out the fire. The biggest problem I saw on BHB was too many folks taking offense at what was being said. They went on the defensive instead of trying to disarm the attacker and answer the question in a reasonable and calm manner. Verbal hostility will always have a negative result.

Let’s start at the beginning with your Carnival of Real Estate victory , right here on Bloodhound Blog: “The proof is in the puddin’ Range Pricing part 1,275! ” Can you expand on your pricing strategy?

Ah, my favorite subject. Brian, I am a listing broker; that is what I do. There are two strategies I employ to get my listings shown and sold. The first is proper pricing. I am an expert on pricing. Being able to analyze market data and price a property to sell is an acquired skill. The biggest part of this is “selling” the seller on the right price. Even in this slower market, a property priced right WILL sell. In my market, values are declining, so the right price could be as much as 5% to 10% below recent comparable sales. Finding the “sweet spot” is my goal.

The second part of my strategy is to get my listings to show up more often on a MLS property search. My initial goal when I take a listing is to get REALTORS? to bring buyers through the door. By “Range Pricing” a property, I am able to use the low price of a range as the list price in the MLS. The target selling price (or the “right price”) is always in the middle of the range. Assuming I have arrived at the “right price”, the listed price will be even lower. This causes my listings to show up in the top five properties when a REALTOR? does a search. The likelihood of my listing getting shown is far better than a property priced just above the “right price” (with hopes of negotiating down). Range pricing enables the seller to negotiate up instead of down. In a nutshell, more exposure means more showings, more offers and a higher selling price in a shorter period of time. I market to REALTORS?, after all, they are the ones with the buyers.

You constantly refer to “transaction brokers” in Florida. How is that different from the “fiduciary relationship” Realtors always talk about?

Transaction Brokerage (TB) is NOT an agency relationship. TB IS a form of representation. In Florida, we are assumed to be TB unless we choose to work as a single agent or as a non-representative. As a TB, we have limited confidentiality and NO fiduciary. We can represent either the seller, the buyer, or both. If we represent both it cannot be to the detriment of either party. We never represent the transaction as the name implies. If I am working for only one party as a TB then I am still guarding their interest. If I work for both parties as a TB, then I am a facilitator. Even though there is no fiduciary, I am still obligated to keep certain information confidential (reasons for selling or buying, financial info and whatever else my CUSTOMER requests that I keep confidential ). The advantage to the consumer is that they cannot be held liable for my actions. In an agency relationship they can. The advantage to the REALTOR? is that I can handle both sides of the transaction without getting involved in a Dual Agency relationship. Dual agency is illegal in the state of Florida. A fiduciary relationship in Real Estate is a very touchy position and dual agency…well, I won’t go there. Let’s just say…(as we do in the south)..”that dog don’t hunt”

Let’s shift to a hot topic: The Mortgage Industry’s Internal Civil War. What did you think about the mortgage industry before this post?

Being on the listing side, 95% of the time, I do not often have to deal with the mortgage industry except trying to decipher what pre-approval letter is valid and which one I should take straight to the toilet. However, I do purchase investment properties. I have used the same mortgage broker for years so I left the details up to him . BUT… after having read this particular post, I am definitely more aware of YSP (yield spread premium) and it’s uses. I have secured more than 20 loans over a 30 year span and never has anyone mentioned or explained YSP to me. This, I find very disturbing.

What was your perception of what was happening during the discussion on this post?

I thought this discussion went south real quick. My perception was that the folks responding, in the mortgage industry, spent way too much time being defensive and not enough time trying to explain what it is they do (or how they handle YSP). My perception was that they definitely had something to hide and were pissed off that the curtain had been opened. Their reaction, to me, said much more than their words. Except for you, of course (Bryant is being kind to the interviewer, here. I was as defensive as the rest of the commenters in the mortgage industry)

How have your opinions changed since that post and subsequent discussion?

I actually wasn’t there to form an opinion. I was there to try and get an understanding of what YSP was and if I should be concerned about it. However, the avoidance and defensive responses led me to form an opinion. Now, if I ask a loan originator how much YSP is in a particular deal and they don’t want to answer me, I will take my business elsewhere. Whether or not they are using it to get paid does not concern me at all; the lack of disclosure and transparency does. I’m very pleased X-broker brought this subject up. I’ve been a Real Estate Broker for 12 years and have closed hundreds of transactions. How could I have not known what YSP is? And if I didn’t, what chance in hell does the consumer have?

Compensation or performance? Which one will it be? This was a favorite of mine because many different compensation models were discussed. You even had Mark Nagel, an attorney who authored a Realtor compensation white paper, join in. Do you think there is room for change in Realtor commission structures? Which do you think will be well-received by the consumer?

I think there are already many different kinds of compensation models. Real estate is one of the most competitive businesses out there; everything is negotiable. I think the change that everyone expects is already available and has been for years. There are many commission structures available for the consumer to choose . I think all consumers have different needs and should spend time educating themselves on the options available to them. I firmly believe the consumer should have the choice. I even recommend “discounters” when a consumer is not in a position to pay me my fee due to lack of equity. My services and my fees are not for everyone nor should they be. How other companies choose to charge for their services is truly not a concern of mine.

How will you change your business to adapt to those changes?

Change? Why change? I have more business than I can handle. I actually pick and choose which sellers I’m willing to work for. I do what I do because I love it. I don’t sell real estate; I solve problems for folks. People who aren’t in the business do not understand this. They think it’s all about the money; that is far from the truth. Real estate is about people not money. People sell because of divorce, illness, death, financial hardships, old age and many other … real life problems. A good REALTOR? can assist them by getting through these difficult situations. Until they can invent a machine that provides genuine care and concern, my job is secure.

How do you see Active Rain as a player in Web 2.0?

Social networks are big. Active Rain is unique in that it gives the consumer an opportunity to see behind the curtain when it comes to RE. To me, this is a very big deal with AR. I think our industry has a golden opportunity to change the consumer’s perspective about who we are and what we do. This is a huge responsibility and we need to take it seriously.

Tell us about your new weblog.

Our new blogsite is BrokerBryant.com. It is in Beta mode right now so I am still tweaking it. Initially it was designed to be a national site but recently, TLW (that’s code for The Lovely Wife) and I have decided to make it more locally focused. Our goal is to talk to the consumer, especially potential sellers in our market. We want to educate the consumer as much as possible on everything RE related. We are also going to have an “ask the Broker” area where consumers can ask specific questions and get a quick response from me. All this is still very new so I haven’t quite figured out how it’s going to play out. I do know it will be the only blog in my market area so it has the potential of being something very big. I’m a flexible type of guy so we’ll see where it leads me.

What really IS the “The Lovely Wife’s” first name? (that’s Bryant’s wife)

Brian, if I told you this, I would then have to kill you. So you can call her Mrs. Tutas.

On that note, I thank Broker Bryant and Mrs. Tutas for the peek into their business.