Most buyers find the house they want to buy without a Realtor, yet they end up paying for one anyhow.
I provide brokerage and legal services all the way up to closing and I REFUND THE ENTIRE BUYER BROKERAGE COMMISSION TO MY CLIENTS (see my fee comparison below). Few buyers understand that there really is no way to truly negotiate the commission without hiring a buyer broker. The listing broker’s contract with the seller lets the listing broker keep the entire commission if the buyer goes at it alone. Listing agents call this unfair windfall a “hogger.”
You could forfeit your right to negotiate the commission and hire your own agent if you set up showings with listing agents or go to open houses.
Listing agents love “hoggers” and are not easily persuaded to give up a double commission. Worse, the decision to determine whether or not the listing agent is entitled to a double commission is determined by an arbitration panel of Realtors long after closing. Many feel those arbitration panels are biased and designed to protect the “hogger.”
Buyer broker fees are fixed by the listing broker and are ONLY payable to other Realtors.
Buyer broker fees are rarely negotiated between the buyer and their broker. In fact, buyer representation contracts entitle the buyer broker to keep whatever amount is offered to them by the listing broker. And if you attempt to make your purchase offer contingent upon the listing broker sharing the buyer brokerage fee with you, you may be interfering with their contract with the seller. It is terribly unfair and that is why I’ve started this service. Here’s a sampling of how my typical fees compare:
- On a $300,000 house, buyers typically save $4225 ($8,600 – $4,375):
- On a $500,000 house, buyers typically save $9,625 ($14,000 – 4,375):
- On a $750,000 house buyers typically save $15,375 ($20,250 – 5,375):
- On a $2.5 million dollar house buyers typically save $61,625 ($67,500 – 6,375):