When you decide to buy a real estate property, you'll stand to benefit from having a professional buyers agent handle your affairs on your behalf. You can't always rely on the seller's agent to do what's in your best interest, so you hire a buyer's agent to negotiate a property price on your behalf. You usually pay a buyer's agent to search for homes independently and impartially for you. Some buyer's agents may charge fixed rates, while others may charge a percentage of the purchase price. Here are some strategies to put you in a better position to negotiate commissions with your buyer's agent.
Create a Competitive Environment
You've probably been on the receiving end of competing with other people at your workplace, so now it's time to know how the other half live. Too many homebuyers make the mistake of approaching just one or two agents, so they don't have a proper benchmark to plan with. Create a competitive environment and ask multiple agents about their commission rates. This will help you determine whether you're being charged reasonably. You can use this as a stepping-stone to get your desired buyer's agent to match a better commission offer.
Don't Fall For the Cheapest
Don't make the mistake of falling for the cheapest quote you have been given. Keep in mind that many agents vary their fees based on their services offered. For example, some buyer's agents only offer negotiation services, while others offer full services that range from negotiation and closure to final signings and contracts. If a buyer's agent only offers negotiation services, their quote is likely to be less, but if you are looking for a full-service agent, then this doesn't meet your needs. Most buyer's agents charge fees based on search area, budget, difficulty degree and search requirements. For example, if you are looking for a home in a specific neighbourhood, the buyer's agent may be willing to quote a lower price. But if you want to look for homes across the city, it will naturally take up more time and cost you more. Keep all these factors in mind before agreeing upon a price and know that the cheapest may not always give you what you need.
Agree to a Fixed Price Commission
While many buyer's agents charge a percentage commission based on the purchase price of the home, you may want to lock in a fixed fee. This way there's no reason to solely focus on higher priced homes for better commissions. For example, you will only pay out the agreed upon fixed price regardless of the cost of the home. This will protect you from agents who attempt to find expensive homes with the purpose of earning more from their percentage-based commissions.
Use these strategies when negotiating commissions with your buyer's agent.Share
17 November 2015
Welcome to my blog. My name is Anita. I am an artist and a writer, but I like to create with any canvas that I have, and that includes my home. I see homes as almost blank slates that need special touches to make them shine. Over the years, I have received a lot of calls from friends. When my friends need to sell their homes or have them appraised, they call me for advice. I think I've helped a lot of them get higher evaluations than they would have otherwise, and I love advising them. If you want tips and ideas on getting great appraisals, this blog is for you.