When it’s time to buy a home, most people pick their broker because they have a friend who is a real estate agent or they just go with the listing agent on the last home they inquired about. That’s because they’re not picking up the tab on the commission when buying a house! The seller pays the commission. BUT you should think about that because a buyer’s broker can help you improve your offer, especially in a competitive seller’s market. Read on to find out how!
Offer More Money WITHOUT Offering More Money!
How can you make your offer better than the rest while NOT offering more money? By reducing the seller’s costs! Most sellers offer a buyer’s broker commission of between 2% – 4% to bring them buyers. What does that mean to you? By working with a 1.5% buyer’s broker, you’ll reduce the seller’s costs, making your offer financially more attractive than a traditional broker. Here’s an example:
Offer $7,500 More...Without Offering $7,500 More! Purchase Price $500,000 Purchase Price $500,000 Typical Buyer’s Daisy’s 1.5% Broker Commission 3% -$15,000 Commission -$7,500 Net Offer to Seller $485,000 Net Offer to Seller $492,500
Your offer of $500,000 beats an identical offer because the seller nets a whopping $7,500 more! You’ve just offered them $7,500 more without offering them $7,500 more! 😊
Reduce the Chance of Appraisal Failure
This also reduces the chance of appraisal failure due to purchase price being too high from multiple offers.
If you’re already working with a broker, I encourage you to continue with him/her since work has been put into helping you. If you aren’t, please give me a call or email. If you’re not quite ready to buy, bookmark this page under your house shopping or home decor websites for when you are ready.
Selling Your Home?
For my sellers, I list for just 1%, by the way. Traditional full-service brokerage, just keep more of your equity! Contact me now to get started.