Many buyers have heard agents say that it doesn't cost anything to have professional representation as a buyer. This is simply not true. While the cost of NOT being represented in a real estate transaction is certainly greater, nearly every buyer's agent is compensated with money that, in a roundabout way, comes from the buyer.
For a listed home, a seller often contracts with a listing brokerage to pay a commission when the home sells. Usually, the listing brokerage offers to split that commission to compensate a buyers agent who brings a buyer for that home. If a buyer comes without representation, the listing brokerage usually keeps the entire commission.
Some agents will say they are paid "from the proceeds of the transaction." But where do the proceeds come from? That's right, usually from the buyer. The buyer gives the seller money for the home and the seller then pays their agent, who then, usually. pays a buyer's agent if there is one.
What happens if a client of a buyer's agent who says their services are "free" comes across a For Sale By Owner who is unwilling to pay any fees to any agent? According to the paperwork that many agents have buyers sign, the buyer will likely be on the hook to pay those fees themselves. So, is representation free? Obviously not. For this reason, many of the agents who advertise their services as "free" will highly discourage clients from considering For Sale By Owner homes or other properties with low or no compensation being offered to the buyer's agent.
We are clear up front that representation costs the buyer money. A buyer is responsible for our fee. In every case, and per our agreement with clients, we credit any compensation received from any party to the transaction toward what the buyer owes, which in some cases, means nothing, in other cases, it could be a decent sum.
In general, we believe that a buyer gets what they pay for with regard to representation. If an agent won't even be clear about their fee, can you really depend on them for honest representation?
- Do you have excellent credit?
- Do you plan to purchase a $300,000-$800,000 home within 90 days?
- Do you have a good down payment, or are you paying cash for your next home?
- Do you want an agent who will act in your best interest throughout your transaction?
Don't work with just any agent. Get YOUR OWN agent!
Call us at (801) 969-8989 or contact us today via the link on this page for a free consultation.
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