Will I Pay Less Commission If I Find My Own Buyer?
There’s a misconception among many sellers out there that any commission they pay to their Realtor will be reduced if they’re able to secure a buyer on their own.
At the heart of the real estate transaction, the goal is to obviously find a buyer to sell the property to, but there’s much more that goes into finalizing the process. In the event that you find your own buyer, it’s oftentimes spelled out in your contract that you, nevertheless, remain beholden to pay a specific amount to your agent.
With this in mind, you can request a flexible commission plan. If you make a point of requesting this up front, your agent may be agreeable to establishing this type of plan with you. Should you find your own buyer, this will allow for the possibility of adjustable commission.
But what is the true value you extract from your agent’s efforts?
Contrary to what you might think, finding a buyer is a relatively small piece of the process for your agent. Once you’ve accepted the buyer’s bid, your agent has the responsibility of doing paperwork with all other parties involved—the buyer’s agent, legal representation, and even title companies.
Before signing an agreement with an agent, take the opportunity to discuss services and commission. If you have a pre-established idea of what you’re willing to pay and it’s somewhat lower, understand that this means the scope of services your agent provides might be narrower. As the old adage goes: You get what you pay for.
From there, your agreement should detail what you’ll pay, whether or not you can cooperate with other agents, your agent’s responsibilities, the length of the contract, and whether or not you can cancel.
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