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Curious about Buyer Agent Compensation? Here’s How It Works! 🏡
Whether you're buying or selling, understanding how buyer agents get compensated is crucial. Imagine this: You’re showing a client a home and want to know if there’s compensation for the buyer’s agent.
When I reach out to the listing agent, here’s how it plays out:
📞 Step 1: Call the agent and confirm the home’s availability.
💬 Step 2: Ask about buyer agent compensation.
Here’s where things get interesting—the agent will either:
1️⃣ Tell you the seller is open to including agent compensation in the offer, leaving it up to you to propose.
2️⃣ Disclose a fixed compensation (like 1%, 2%, or more) that the seller already agreed to pay.
📝 Important: They can’t advertise compensation on the MLS, but it can be mentioned via email, on a sign, or verbally. Knowing this helps you confidently negotiate and maximize value for your buyer.
Transcript:
How does a buyer agent get incentivized to bring up, bring an actual buyer? So if I was representing Mark, I would call Daniel, and I would say, Hey, Daniel, my client wants to see the home. Is it still available? And Daniel will say, Yes, it is. And I go, Hey, can you tell me about the home? Blah, blah, blah. He sees. Gonna tell me the info about the home. Then I'm gonna say, Hey, um, is your client willing to offer buyer agent compensation? Daniel will say one of two things. He'll say, my client's open to paying by representation, compensation based on the terms of the offer, which means whatever you want, write it up as part of the offer and send it to me. I'm not going to tell you anything. Or he may say, my client's willing to pay this. He's already agreed to pay 1% 2% two and a half percent, whatever. He's going to give you one of those two things. Either of those statements are okay, because as long as Bryce directs Daniel to tell me anything, it's totally okay, but he cannot advertise it on the MLS. He can advertise it on a sign, he can advertise it on email, but he cannot put it on the MLS.
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