Real estate headlines have been flooded with news about buyer’s agent compensation in recent months. With all of these changes, you may be wondering if you should offer the buyer’s agent compensation. Glenn Phillips, CEO of Beach Homes Realty, discusses this topic.
- It Depends. The answer isn’t always clear, and it depends on your specific situation. Start by thinking about your goal for selling your house.
- What Is Your Goal in Selling? When selling your lake home, your goal is likely to sell your home at a high price in a short amount of time. However, you should consider how you’re going to obtain that goal. Buyer’s agent compensation affects your pool of buyers, which falls into three groups.
- Three Group of Buyers. When selling your beach home, you need to consider which of these groups you want to include in your pool of buyers. The amount you pay the buyer’s agent depends on which group you want.
- Can Pay Their Agent. Firstly, these buyers have the money to pay their agent and will pay for quality service.
- Can Not (or Will Not) pay Their Agent. These buyers expect the buyer’s agent compensation to be adjusted through the seller’s offering. They could also just refuse to pay their agent based on past experience of not doing so. This situation can cause challenges for the buyer to be able to look at or even negotiate for your house.
- Can and Will Pay a Portion. Lastly, these buyers may have limited financial means, a budget, or something else preventing them from paying the full compensation. Whatever the case is, they expect the seller to make up the other portion of the buyer’s agent compensation.
- Suggested Goal: Best Net Dollar. If you consider that paying someone could actually bring you more money, it’s probably worth paying them. However, if the property will move without paying someone, you might want to hold back.
Knowing your goals for selling your house will shed light on how much you should pay the buyer’s agent. Additionally, talking with an expert beach agent will help you determine the value of buyer’s agent services in your market. Visit beach-homes.com to talk with expert agents who can guide you through the beach real estate market.