Real Estate Commission & Conflicts of Interest
Choose which of the following homes you would be most interested in selling if you were a Realtor working to sell homes for a living.
After you study the different scenarios below you will have a better understanding how the real estate commission interfers with your best interest as a buyer.
Home A: FSBO home with no commission offered VS. Home B: A home that pays an average commission
Home C: A home that pays an average commission VS. Home D: A home that pays a commission that is below average
Home E: A home that pays a average commission VS. Home F: A home that pays a commission that is above average
Home G: A home that pays an average commission VS. Home H: A home that pays an average commission plus a $1,500 bonus
Home I: A home that pays an average commission but has several negatives in your opinion VS. Home J: A home that pays an average commission but not available for two months but would probably be a better buy and more suitable home and area in your opinion.
Home K: A home that pays an average commission and is an average home VS. Home L: A home that pays an average commisssion that is above average home but will require more time and effort on your part as an agent to negotiate an accepted offer.
Home M: A home that pays an average commission and the only home the buyer has seen and loves after viewing over 30 homes with you over the past 5 weekends VS. Home N: A home that pays an average commission and is in your opinion a perfect match and a superior home to Home M but requires scheduling an appointment to see it the following weekend.
Home O: This home pays an average commisssion and was found by your buyer who did not tell the listing agent you were their agent. Your buyer states they have prepared an offer with the listing agent but presenting the offer is contingent on your buyers seeing a home you told them about .VS. Home P: This home pays an average commisssion and is not as nice as Home O which is the perfect home for your buyer from your observation from working with them. Your Buyer Representation Agreement does not include a clause where your buyer pays you a commisssion if he/she buys a home through another agent.
Calling a traditional real estate sales person by a different name such as a “buyer’s representative” or “home buyer consultant” or buyer broker does not change that they are ultimately paid by earning a commission. Whenever a real estate sales person offers “free” buyer assistance or consultation, consider the possibility that these services may not really be free (i.e. the cost is hidden somewhere). Remember the old saying, “you never get something for nothing.” To make it worse , consider the agent who has the home listed that you buy will earn a commission for listing and a commission for selling. If you are the listing agent you may view this like “winning the lottery” depending on thcommssion and the sales price of the home.
Bottomline: Whoever sells you a home will be paid and they will be paid by you – one way or another. You should ensure that you (and only you) are paying the sales agent directly, thus ensuring that their service is driven by your best interests. Our BUY-WISE Flat Service is designed to serve your best interest within the scope of the services we provide and no other compensation will be earned from your purchase than what is agreed upon upfront between you and our company.
Looking for more control and more direct involvement with a service that is 100% focused on saving you thousands of dollars when you buy ANY home in Tennessee? It’s available through The Home Buyers Realty.
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