Buyer’s Agent Compensation

Benefits to Buyers?

 

SELLER TIP: BUYER'S AGENT COMPENSATION. Photo credit: Timothy Bates

 

HOW OFFERING BUYER'S AGENT
COMPENSATION CAN BENEFIT SELLERS

 

I’ve answered questions about Buyer’s Agent Compensation many times. Many buyers and sellers are still unaware of the significant change in the real estate industry in 2024. Whether to offer compensation to a buyer’s agent and the compensation you may offer is your choice. There is no legal or other obligation to provide such compensation. However, so that you can make an informed decision and understand why we recommend you make such an offer, below are some points to consider regarding why we believe there are significant benefits to doing so.

·       The most significant benefit of offering compensation to a buyer’s agent is to help make your property attractive to the broadest possible pool of potential buyers. Experience has shown that this is the best way to create the highest demand for your home, generate the fastest sales, and potentially the best price.

·       Often, buyers need their cash for the down payment and other significant expenses. They may need an agent to represent them, but some buyers may not have the money to pay their agent out of pocket.

·       Experience shows that the seller benefits from the buyer having an agent because the transaction goes much more smoothly. Closing can take longer without an agent representing the buyer, and other complications can arise. Offering compensation to the buyer’s agent generally increases the chance that the buyer is represented by a licensed professional who will manage their side of the transaction.

 

HOW BUYER’S AGENT IS PAID IF
YOU OFFER COMPENSATION

 

·       You have offered to pay the commission due to the buyer’s agent. In this case, the commission obligation will be paid by you out of the funds paid to purchase your home.

·       You have offered compensation consisting of only a portion of the commission due to the buyer’s agent. This would require the buyer to pay any portion of the commission not paid by you.  Alternatively, the buyer could condition the purchase offer on you paying the whole commission obligation.

 

HOW BUYER’S AGENT IS PAID IF
YOU DO NOT OFFER COMPENSATION

 

·       You have not offered to pay any portion of the commission owed to the buyer’s agent.  In this case, the buyer can include a requirement that youpay the commission obligation as part of the offer made on your property.

·       You do not agree to pay the buyer’s agent commission, in which case the buyer would be responsible for the commission.

 

Ready to make your home stand out and attract more buyers? Offering buyer’s agent compensation may be a game-changer in your selling strategy. Contact me today to learn how we can help you navigate the selling process and achieve the best results for your home! Learn more

 

         

 

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For any inquiries, please contact:

Timothy Bates | REALTOR® | Army Special Forces Veteran

timothy.bates@cbrealty.com

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