ALTERNATE COMPENSATION MODELS:
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3
Negotiating Commission with the Seller:
Seller Concessions:
If we encounter a listing that is NOT offering a commission to buyer agents, and you still want to consider the property, one approach I can take is to negotiate with the seller or the seller's agent to include my buyer's agent commission in the terms. This can be part of the overall negotiation process when making an offer on the property.
A seller concession is an agreement where the seller agrees to pay a portion of the closing costs on behalf of the buyer. This can include various fees associated with purchasing a home, such as loan origination fees, appraisal fees, points, etc, reducing your upfront out-of-pocket expenses, potentially making the home purchase more affordable to account for direct pay commission obligations.
2
Adjusting the Purchase Offer:
4
Buyer Pays Commission Direct:
Another strategy could be to adjust the purchase offer to indirectly cover the commission. For example, if the home is listed for $300,000 and the typical commission would be $9,000, we could offer $309,000 with the condition that the seller pays a $9,000 commission to the buyer's agent. This way, the net to the seller remains the same and your commission obligations are rolled into the overall price of the home.
In cases where the seller refuses to pay the buyer's agent commission, and it cannot be built into the purchase price, you as the buyer may be responsible to pay the commission directly. This would be something we'd discuss and agree upon before moving forward on a property and it will be stipulated in our buyer's agency agreement.
OR ANY COMBINATION OF THE ABOVE
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