June 14, 2024 • 17 mins
Should You Offer a Buyer's Agent Commission When You Sell Your Home?
Dennis Day and Judy Gratton of the Edge Group Team and EXP Realty, offer Five strong reasons why you should.
Are you prepared to navigate the new landscape of real estate in Washington State? This episode promises to equip you with everything you need to know about the recent changes in real estate laws, especially the new mandate requiring written contracts between buyers and their agents. Judy and Dennis uncover the implications of this shift, from how buyers must now directly pay their agents to what sellers should consider when offering commissions to buyers' agents.
We break down five critical reasons why sellers might still want to offer these commissions, highlighting benefits like market perception and smoother transactions.
As we wrap up, we extend our gratitude to our loyal listeners on platforms like Apple and Spotify. Your engagement and support are the driving force behind our podcast. Reflecting on the central themes of gaining an edge and right-sizing your life and home, we encourage you to stay tuned for more practical advice and insightful discussions in our upcoming episodes. Thank you for being an integral part of our community. Until next time, take care!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Hello everyone.
This is Dennis Day with Gettingyour Edge Out of Right Size,
your Home Life podcast, and wehave a show today that's about
some changes in the real estateagency buyers agency and this is
really confusing, but it doesaffect sellers and buyers.
Judy the co-host, welcome, andcan you kind of give an
(00:24):
explanation of what happened inWashington State anyways?
Speaker 2 (00:27):
I absolutely can, dennis, and thank you so much
for asking.
Good to see you and happybirthday, thank you I thought
you were going to get away withthat, but you can't.
On January 1st in the state ofWashington a law was passed by
the state that requires thatreal estate agents must have a
(00:48):
written contract to represent abuyer and that contract spells
out how much they're going toget paid and what the options
are regarding how they get paid,because the pay now is
technically the responsibilityof the buyer.
(01:09):
But now, even to show aproperty there must be a written
contract.
That is the law, and we can donon-exclusive contracts, we can
do one day contracts, we can doone property contract, but you
will be asked by your realestate agent if they want to get
(01:32):
paid at all to sign a contract,because without a signed
contract the agent doesn't getpaid at all and I don't know of
too many agents who are willingto work for free.
But the bottom line is it isthe responsibility of the buyer
to pay the agent that they hirefor their services, and it's
(01:55):
going to seem very strange tobuyers who have bought before,
because that was never the case.
Commission is offered by theseller at all.
Then does the buyer still wantto look at those homes?
Or do they not want to look athomes where the seller is not
offering any commission Becausethey don't want to fall in love
(02:16):
with something where they don'thave the cash to pay their agent
.
Then you may see buyer's agentsasking for a concession from you
the seller to pay theircommission.
And the reason that thathappens is that a lot of buyers
(02:36):
require financing and they arecoming up with money for the
down payment, whatever it is theamount is.
Coming up with money for thedown payment, whatever it is,
the amount is.
They're coming up with moneyfor their required closing costs
that they have to pay, nomatter what.
If they're doing financing,there's a title insurance policy
that they have to pay for forthe finance, the lender.
(02:58):
There's half of escrow.
There could be prorated taxesand homeowner association dues
and things like that roughly 3%right there.
So asking them to come up withanother two and a half or 3%
maybe would knock them out ofbeing able to buy your home at
(03:19):
all.
It's really confusing.
It's hard to explain, but itdoes affect the seller because
they have to make choices tooand they're going to be seeing
offers coming towards themasking that they pay a
commission as a concession tothe buyer's agent.
Speaker 1 (03:41):
Thanks, judy, for that explanation of the new law.
And yeah, it is prettyconfusing.
And although this law seems asif it only concerns buyers, it
now requires sellers to makecritical decisions about how
they will present their home forsale to buyers.
So we're going to present youwith five reasons why a seller
should offer to pay a buyer'sagent commission.
(04:03):
We think it's sound businesspractice that will increase the
seller's final price.
So let's take a look.
This is historically.
This is what the practice wasbefore January 1st.
So the buyer made an offer,seller accepts.
Buyer gets a loan or paysthrough cash At closing.
The loan pays the sellers onbehalf of the buyers
(04:24):
transferring money from bank tosellers.
The seller pays listing agent acommission as negotiated.
Seller pays the buyer's agentcommission as negotiated, and
this is all up front.
Speaker 2 (04:37):
The seller understood at that point in time what
monies would be paid out oftheir earnings.
Yes, okay, what?
monies would be paid out oftheir earnings.
Yes, okay, they paid thelisting agent for the services
they were done, but it was neverreally explained to them why
they were paying the buyer'sagent.
True, and do remember that evenwhen the buyer gets a loan,
(04:58):
they may be putting some downpayment.
They could pay cash completelyand take the lender out, but
most buyers use a loan and theirdown payment would be part of
the money going to the sellerthat was our standard practice
and it worked for years.
Speaker 1 (05:12):
Then came the lawsuit and then, even before the law,
before the lawsuit was settled,state of Washington decided hey,
let's make some changes.
Speaker 2 (05:21):
So here we go, I think they saw that there needed
to be more transparency.
You know, it wasn't explainedto the seller why they were
paying the buyer's agents.
Speaker 1 (05:31):
So buyers make an offer, sellers accept, buyer get
a loan, closing the loan paysthe sellers and the seller pays
the listing agent.
That's negotiated between thelisting agent and the buyer
before they sign the contract.
Speaker 2 (05:46):
Correct Still negotiable.
Speaker 1 (05:47):
Now the seller may pay a buyer's agent commission.
That's the new or they may not.
If some of the proceduresfollow through, the seller in
the listing will not even haveto list if they're making a,
giving a commission or not.
We don't really know what'sgoing to happen.
(06:08):
Okay, so in my mind personallythis is my, I think technically
the buyer pays the selling agentand the buyer's agent because
without a sale, without theirloan or their cash, there is no
sale and there's no commissionsto anybody.
That money comes from the buyer.
(06:30):
So let's look at our first offive reasons Market perception.
Offering a buyer's agentcommission can enhance the
market perception of a property.
It signals that the seller isserious, honest.
Cooperative can improve theoverall attractiveness of the
listing and encourage moreproactive responses from it just
(06:51):
looks good.
Buyers are excited about homeswhere they know that they're not
going to have to come without-of-pocket cash to pay the
buyer's agent.
Speaker 2 (07:02):
Because a lot of times they don't have it.
And if you say, I don't care,they can go buy a lower priced
home, true, they can do that,but then you just lost a buyer
and again, that way you'll showsome more reasons here that is
going to be detrimental to yourbottom line.
Speaker 1 (07:20):
Our second reason professional negotiations,
professional negotiator if thebuyer has an agent, they know
they're working for the buyer.
They just facilitate atransaction.
Handling the negotiations,ensuring that the buyer's
interests are met, also keepingthe seller's terms in mind.
This can lead to more efficient, less stressful negotiations
(07:40):
than the seller and the peace ofmind for the buyer.
Let's get an example that saybuyer's agent brings an offer to
the seller and there is nocommission.
Now they could be the higheroffer, but is that buyer going
to be able to pay out of pocket?
Speaker 2 (07:57):
And even worse, if there is no commission, if it's
an absolute no at this point intime, the buyer may have told
their agent not to show themyour house at all.
So again, you just lost apotential buyer.
Speaker 1 (08:13):
Right that buyer agency agreement, there can be
stipulations that the agentdoesn't show properties that
don't meet a certain criteria ofbuyer agent commission.
So you're missing out on a poolof people who would come to
your home if you don't offerthis Reason three to offer a
buyer's agent commission.
So you're missing out on a poolof people who would come to
your home if you don't offerthis Reason three to offer a
buyer's agent commission.
All right, Increased buyertraffic.
(08:34):
I think that's really the cruxof the thing is that when you're
saying no, I'm not going tooffer this in this transaction,
that you're going to limit thenumber of buyers and agents who
come to your home or look atyour home.
Speaker 2 (08:49):
That is very likely to be the case.
That is very likely to be thecase because the buyers will say
, no, I don't want to see a home.
That is an offering to pay yourcommission because I don't have
the cash to pay you, and thelender will not finance the
commission.
(09:09):
It's weird because they'redoing it anyway, but it's called
the purchase of the house.
Then it transfers over to youand that may very well be why it
started in the first place.
But if you just say to a lender, will you finance the
commission Right now, they'regoing to tell you no because
that's not a tangible thing thatthey're financing.
(09:30):
So when they loan money,there's something they're
loaning it on.
Speaker 1 (09:36):
Yeah, they want some kind of collateral.
Speaker 2 (09:40):
Not the body of the well, you have the buyer agent
if it doesn't get paid.
Speaker 1 (09:45):
The agent's job, the listing agent's job is to get as
many eyeballs on it through theinternet or bodies through it
some way.
The more people who comethrough that home, looking at
this home, the greater chance Ayou're going to have a sale and
B you're going to get askingprice or, if you got the right
(10:08):
market, you might get a biddingwar.
But if you decrease the pool,the likelihood of that happening
diminishes, it shrinks.
Speaker 2 (10:17):
Yeah, it definitely does.
Speaker 1 (10:20):
Reason four selling your home faster With a buyer's
agent.
Commission sell faster.
Agents are incentivized toprioritize these listings, which
can result in a quicker salecompared to properties who don't
.
If you want to sell your homefaster, you offer a buyer's
commission.
Speaker 2 (10:41):
We collect data and we can get access today.
I just did this the other dayto see.
The data tells us exactly howmany offers it will take on
average in a given location toget to pending to get a contract
signed around.
Pending to get a contractsigned around.
(11:03):
And in the particular case thatI was looking at, in one area
it only took five showings byagents and a different area in
the same state it took 18 to 20.
So you need those showings.
Speaker 1 (11:21):
And our fifth reason and this is a biggie it will
increase the sale price of yourhome.
I was kind of surprised at this, but I really researched this.
An offering a commission canlead to a more competitive
bidding, as buyers agent bringmore interested buyers to the
table.
This competition can drive thefinal sale price above asking
price, maximizing the seller'sreturn on investment price.
(11:45):
Maximizing the seller's returnon investment is from Northwest
MLS, nar, agentadvice andrealestatenewscom.
Listings that offer a buyeragent commission sell over
asking price 20 to 30% of thetime.
Listings that don't offer thecommission only sell above
(12:06):
asking price 10%.
Which would you rather be 25%to 30% or the 10%?
We want to look at the buyer'ssituation too.
Judy, you mentioned thisalready, but most buyers are
putting every single dime intothe purchase of their home.
They don't I mean particularlyfirst-time buyer.
They don't have a whole bunchof extra savings to pay a
(12:29):
buyer's agent.
Buyers can't finance thatcommission.
Speaker 2 (12:34):
No, they cannot.
Speaker 1 (12:36):
Banks won't let them.
Speaker 2 (12:37):
They can finance your house and pay the commission
from the money that you get atyour house.
That's how we've always done itand that's how it can be done.
But if you say, like I said,finance my buyer's agent
commission, the answer is no,there's nothing there to finance
most buyers will agree not toview properties that require
(13:00):
them to pay all or some of thecommission.
Speaker 1 (13:03):
So that's negotiated with that buyer's agency
agreement.
The buyer agent and the buyerare saying, okay, at what point
do I stop showing you?
And some buyers will say, no, Iwant you to show me everything,
regardless of buyer's agentcommission.
Some of them will say, well,look, I can only pay so much, so
(13:25):
anything that's going torequire more than that I don't
want to see.
I don't want to fall in lovewith a home that I can't
eventually get.
That's it.
Speaker 2 (13:35):
Because they just flat out won't have the money to
make that happen if they haveto pay the buyer's agent
agreement.
And the seller needs them.
Needs them to boost theshowings, so we get to pending.
Needs them to boost theescalations, so you get the
highest price.
But you want to take advantageof all the options to get the
(14:00):
highest price.
So not considering offering abuyer's agent commission as a
concession to the sale from themoney that really came from the
buyer in the first place is kindof shooting yourself in the
foot a little bit.
Speaker 1 (14:17):
Now there isn't a guarantee that if you don't
offer a buyer's commission, thatyou're not going to get full
pricing, you're not going to getthat sale I mean.
And there's also no guaranteethat you offer a commission,
that you're going to get, youknow, a fabulous over asking
price bidding war.
There's a bit of a return oninvestment, though.
I'm offering the buyer'scommission, I'm getting more
(14:38):
buyers and then I'm getting moreeyeballs, I'm getting more
people, there's more offers, I'mgetting a competition getting
into a bidding war, and that'swhere the seller can really
excel.
There will be sellers out therewho really want to take
everything they can possibly getand they'll be happy that they
(15:01):
saved on that buyer commission.
Whether they could have mademore is, you know, it's
impossible to say, butlikelihood they missed out.
Speaker 2 (15:11):
The numbers show that they do.
You know we can't promise that,but on average the numbers show
that they do.
The reports and we collect alot of data in this industry
show that they do.
Speaker 1 (15:22):
That's our recommendation.
You've got five good reasonswhy you should really consider
offering buyer's agentcommission, and I think it's a
good investment.
I think it'll bring moreeyeballs, more bodies, to your
listing, to your home, and it'sgoing to make the sale faster
and for a better price.
Speaker 2 (15:43):
Most likely.
Speaker 1 (15:44):
Without saying that, without the 100% guarantee.
Okay, that's it for today.
Wow, I hope this informationwas helpful to you.
Speaker 2 (15:54):
Not too confusing.
It was very yeah.
Speaker 1 (15:57):
I know Things probably won't settle down until
after August.
They're just fluctuating allthe time.
We say one thing, we're goingto do this, then they change
their mind.
I think this is also thatbuyers need to have an agent,
because it's just going to bethat much harder to negotiate.
(16:19):
You've got another layer tonegotiate.
Speaker 2 (16:23):
And if you're confused, please feel free to
reach out to us and we'll tryeven more to explain it.
To negotiate, and if you'reconfused, please feel free to
reach out to us and we'll tryeven more to explain it to you.
You can find our phone numberwhere Dennis and our email
address.
Speaker 1 (16:35):
My email address is dennisdayre at outlookcom.
Judy, you want to give youremail.
Speaker 2 (16:43):
It's my name, judy Gratton J-U-D-Y-G-R-A-T-T-O-N at
JudyGrattoncom Easy one toremember.
Speaker 1 (16:55):
Okay, sellers, you're going to have to be making
tough decisions about this ifyou put your own up to sale.
So this is a really importantconversation with your listing
agent Time.
Thanks for watching everybody,or listening on Apple or Spotify
(17:15):
, wherever you get your things.
This is Getting your Edge Outof Right Size.
Your Home and Life podcast.
Thanks for being here.
Take care.
Bye-bye.
Hello everyone.
This is Dennis Day with Gettingyour Edge Out of Right Size,
your Home Life podcast, and wehave a show today that's about
some changes in the real estateagency buyers agency and this is
really confusing, but it doesaffect sellers and buyers.
Judy the co-host, welcome, andcan you kind of give an
(00:24):
explanation of what happened inWashington State anyways?
Speaker 2 (00:27):
I absolutely can, dennis, and thank you so much
for asking.
Good to see you and happybirthday, thank you I thought
you were going to get away withthat, but you can't.
On January 1st in the state ofWashington a law was passed by
the state that requires thatreal estate agents must have a
(00:48):
written contract to represent abuyer and that contract spells
out how much they're going toget paid and what the options
are regarding how they get paid,because the pay now is
technically the responsibilityof the buyer.
(01:09):
But now, even to show aproperty there must be a written
contract.
That is the law, and we can donon-exclusive contracts, we can
do one day contracts, we can doone property contract, but you
will be asked by your realestate agent if they want to get
(01:32):
paid at all to sign a contract,because without a signed
contract the agent doesn't getpaid at all and I don't know of
too many agents who are willingto work for free.
But the bottom line is it isthe responsibility of the buyer
to pay the agent that they hirefor their services, and it's
(01:55):
going to seem very strange tobuyers who have bought before,
because that was never the case.
Commission is offered by theseller at all.
Then does the buyer still wantto look at those homes?
Or do they not want to look athomes where the seller is not
offering any commission Becausethey don't want to fall in love
(02:16):
with something where they don'thave the cash to pay their agent
.
Then you may see buyer's agentsasking for a concession from you
the seller to pay theircommission.
And the reason that thathappens is that a lot of buyers
(02:36):
require financing and they arecoming up with money for the
down payment, whatever it is theamount is.
Coming up with money for thedown payment, whatever it is,
the amount is.
They're coming up with moneyfor their required closing costs
that they have to pay, nomatter what.
If they're doing financing,there's a title insurance policy
that they have to pay for forthe finance, the lender.
(02:58):
There's half of escrow.
There could be prorated taxesand homeowner association dues
and things like that roughly 3%right there.
So asking them to come up withanother two and a half or 3%
maybe would knock them out ofbeing able to buy your home at
(03:19):
all.
It's really confusing.
It's hard to explain, but itdoes affect the seller because
they have to make choices tooand they're going to be seeing
offers coming towards themasking that they pay a
commission as a concession tothe buyer's agent.
Speaker 1 (03:41):
Thanks, judy, for that explanation of the new law.
And yeah, it is prettyconfusing.
And although this law seems asif it only concerns buyers, it
now requires sellers to makecritical decisions about how
they will present their home forsale to buyers.
So we're going to present youwith five reasons why a seller
should offer to pay a buyer'sagent commission.
(04:03):
We think it's sound businesspractice that will increase the
seller's final price.
So let's take a look.
This is historically.
This is what the practice wasbefore January 1st.
So the buyer made an offer,seller accepts.
Buyer gets a loan or paysthrough cash At closing.
The loan pays the sellers onbehalf of the buyers
(04:24):
transferring money from bank tosellers.
The seller pays listing agent acommission as negotiated.
Seller pays the buyer's agentcommission as negotiated, and
this is all up front.
Speaker 2 (04:37):
The seller understood at that point in time what
monies would be paid out oftheir earnings.
Yes, okay, what?
monies would be paid out oftheir earnings.
Yes, okay, they paid thelisting agent for the services
they were done, but it was neverreally explained to them why
they were paying the buyer'sagent.
True, and do remember that evenwhen the buyer gets a loan,
(04:58):
they may be putting some downpayment.
They could pay cash completelyand take the lender out, but
most buyers use a loan and theirdown payment would be part of
the money going to the sellerthat was our standard practice
and it worked for years.
Speaker 1 (05:12):
Then came the lawsuit and then, even before the law,
before the lawsuit was settled,state of Washington decided hey,
let's make some changes.
Speaker 2 (05:21):
So here we go, I think they saw that there needed
to be more transparency.
You know, it wasn't explainedto the seller why they were
paying the buyer's agents.
Speaker 1 (05:31):
So buyers make an offer, sellers accept, buyer get
a loan, closing the loan paysthe sellers and the seller pays
the listing agent.
That's negotiated between thelisting agent and the buyer
before they sign the contract.
Speaker 2 (05:46):
Correct Still negotiable.
Speaker 1 (05:47):
Now the seller may pay a buyer's agent commission.
That's the new or they may not.
If some of the proceduresfollow through, the seller in
the listing will not even haveto list if they're making a,
giving a commission or not.
We don't really know what'sgoing to happen.
(06:08):
Okay, so in my mind personallythis is my, I think technically
the buyer pays the selling agentand the buyer's agent because
without a sale, without theirloan or their cash, there is no
sale and there's no commissionsto anybody.
That money comes from the buyer.
(06:30):
So let's look at our first offive reasons Market perception.
Offering a buyer's agentcommission can enhance the
market perception of a property.
It signals that the seller isserious, honest.
Cooperative can improve theoverall attractiveness of the
listing and encourage moreproactive responses from it just
(06:51):
looks good.
Buyers are excited about homeswhere they know that they're not
going to have to come without-of-pocket cash to pay the
buyer's agent.
Speaker 2 (07:02):
Because a lot of times they don't have it.
And if you say, I don't care,they can go buy a lower priced
home, true, they can do that,but then you just lost a buyer
and again, that way you'll showsome more reasons here that is
going to be detrimental to yourbottom line.
Speaker 1 (07:20):
Our second reason professional negotiations,
professional negotiator if thebuyer has an agent, they know
they're working for the buyer.
They just facilitate atransaction.
Handling the negotiations,ensuring that the buyer's
interests are met, also keepingthe seller's terms in mind.
This can lead to more efficient, less stressful negotiations
(07:40):
than the seller and the peace ofmind for the buyer.
Let's get an example that saybuyer's agent brings an offer to
the seller and there is nocommission.
Now they could be the higheroffer, but is that buyer going
to be able to pay out of pocket?
Speaker 2 (07:57):
And even worse, if there is no commission, if it's
an absolute no at this point intime, the buyer may have told
their agent not to show themyour house at all.
So again, you just lost apotential buyer.
Speaker 1 (08:13):
Right that buyer agency agreement, there can be
stipulations that the agentdoesn't show properties that
don't meet a certain criteria ofbuyer agent commission.
So you're missing out on a poolof people who would come to
your home if you don't offerthis Reason three to offer a
buyer's agent commission.
So you're missing out on a poolof people who would come to
your home if you don't offerthis Reason three to offer a
buyer's agent commission.
All right, Increased buyertraffic.
(08:34):
I think that's really the cruxof the thing is that when you're
saying no, I'm not going tooffer this in this transaction,
that you're going to limit thenumber of buyers and agents who
come to your home or look atyour home.
Speaker 2 (08:49):
That is very likely to be the case.
That is very likely to be thecase because the buyers will say
, no, I don't want to see a home.
That is an offering to pay yourcommission because I don't have
the cash to pay you, and thelender will not finance the
commission.
(09:09):
It's weird because they'redoing it anyway, but it's called
the purchase of the house.
Then it transfers over to youand that may very well be why it
started in the first place.
But if you just say to a lender, will you finance the
commission Right now, they'regoing to tell you no because
that's not a tangible thing thatthey're financing.
(09:30):
So when they loan money,there's something they're
loaning it on.
Speaker 1 (09:36):
Yeah, they want some kind of collateral.
Speaker 2 (09:40):
Not the body of the well, you have the buyer agent
if it doesn't get paid.
Speaker 1 (09:45):
The agent's job, the listing agent's job is to get as
many eyeballs on it through theinternet or bodies through it
some way.
The more people who comethrough that home, looking at
this home, the greater chance Ayou're going to have a sale and
B you're going to get askingprice or, if you got the right
(10:08):
market, you might get a biddingwar.
But if you decrease the pool,the likelihood of that happening
diminishes, it shrinks.
Speaker 2 (10:17):
Yeah, it definitely does.
Speaker 1 (10:20):
Reason four selling your home faster With a buyer's
agent.
Commission sell faster.
Agents are incentivized toprioritize these listings, which
can result in a quicker salecompared to properties who don't
.
If you want to sell your homefaster, you offer a buyer's
commission.
Speaker 2 (10:41):
We collect data and we can get access today.
I just did this the other dayto see.
The data tells us exactly howmany offers it will take on
average in a given location toget to pending to get a contract
signed around.
Pending to get a contractsigned around.
(11:03):
And in the particular case thatI was looking at, in one area
it only took five showings byagents and a different area in
the same state it took 18 to 20.
So you need those showings.
Speaker 1 (11:21):
And our fifth reason and this is a biggie it will
increase the sale price of yourhome.
I was kind of surprised at this, but I really researched this.
An offering a commission canlead to a more competitive
bidding, as buyers agent bringmore interested buyers to the
table.
This competition can drive thefinal sale price above asking
price, maximizing the seller'sreturn on investment price.
(11:45):
Maximizing the seller's returnon investment is from Northwest
MLS, nar, agentadvice andrealestatenewscom.
Listings that offer a buyeragent commission sell over
asking price 20 to 30% of thetime.
Listings that don't offer thecommission only sell above
(12:06):
asking price 10%.
Which would you rather be 25%to 30% or the 10%?
We want to look at the buyer'ssituation too.
Judy, you mentioned thisalready, but most buyers are
putting every single dime intothe purchase of their home.
They don't I mean particularlyfirst-time buyer.
They don't have a whole bunchof extra savings to pay a
(12:29):
buyer's agent.
Buyers can't finance thatcommission.
Speaker 2 (12:34):
No, they cannot.
Speaker 1 (12:36):
Banks won't let them.
Speaker 2 (12:37):
They can finance your house and pay the commission
from the money that you get atyour house.
That's how we've always done itand that's how it can be done.
But if you say, like I said,finance my buyer's agent
commission, the answer is no,there's nothing there to finance
most buyers will agree not toview properties that require
(13:00):
them to pay all or some of thecommission.
Speaker 1 (13:03):
So that's negotiated with that buyer's agency
agreement.
The buyer agent and the buyerare saying, okay, at what point
do I stop showing you?
And some buyers will say, no, Iwant you to show me everything,
regardless of buyer's agentcommission.
Some of them will say, well,look, I can only pay so much, so
(13:25):
anything that's going torequire more than that I don't
want to see.
I don't want to fall in lovewith a home that I can't
eventually get.
That's it.
Speaker 2 (13:35):
Because they just flat out won't have the money to
make that happen if they haveto pay the buyer's agent
agreement.
And the seller needs them.
Needs them to boost theshowings, so we get to pending.
Needs them to boost theescalations, so you get the
highest price.
But you want to take advantageof all the options to get the
(14:00):
highest price.
So not considering offering abuyer's agent commission as a
concession to the sale from themoney that really came from the
buyer in the first place is kindof shooting yourself in the
foot a little bit.
Speaker 1 (14:17):
Now there isn't a guarantee that if you don't
offer a buyer's commission, thatyou're not going to get full
pricing, you're not going to getthat sale I mean.
And there's also no guaranteethat you offer a commission,
that you're going to get, youknow, a fabulous over asking
price bidding war.
There's a bit of a return oninvestment, though.
I'm offering the buyer'scommission, I'm getting more
(14:38):
buyers and then I'm getting moreeyeballs, I'm getting more
people, there's more offers, I'mgetting a competition getting
into a bidding war, and that'swhere the seller can really
excel.
There will be sellers out therewho really want to take
everything they can possibly getand they'll be happy that they
(15:01):
saved on that buyer commission.
Whether they could have mademore is, you know, it's
impossible to say, butlikelihood they missed out.
Speaker 2 (15:11):
The numbers show that they do.
You know we can't promise that,but on average the numbers show
that they do.
The reports and we collect alot of data in this industry
show that they do.
Speaker 1 (15:22):
That's our recommendation.
You've got five good reasonswhy you should really consider
offering buyer's agentcommission, and I think it's a
good investment.
I think it'll bring moreeyeballs, more bodies, to your
listing, to your home, and it'sgoing to make the sale faster
and for a better price.
Speaker 2 (15:43):
Most likely.
Speaker 1 (15:44):
Without saying that, without the 100% guarantee.
Okay, that's it for today.
Wow, I hope this informationwas helpful to you.
Speaker 2 (15:54):
Not too confusing.
It was very yeah.
Speaker 1 (15:57):
I know Things probably won't settle down until
after August.
They're just fluctuating allthe time.
We say one thing, we're goingto do this, then they change
their mind.
I think this is also thatbuyers need to have an agent,
because it's just going to bethat much harder to negotiate.
(16:19):
You've got another layer tonegotiate.
Speaker 2 (16:23):
And if you're confused, please feel free to
reach out to us and we'll tryeven more to explain it.
To negotiate, and if you'reconfused, please feel free to
reach out to us and we'll tryeven more to explain it to you.
You can find our phone numberwhere Dennis and our email
address.
Speaker 1 (16:35):
My email address is dennisdayre at outlookcom.
Judy, you want to give youremail.
Speaker 2 (16:43):
It's my name, judy Gratton J-U-D-Y-G-R-A-T-T-O-N at
JudyGrattoncom Easy one toremember.
Speaker 1 (16:55):
Okay, sellers, you're going to have to be making
tough decisions about this ifyou put your own up to sale.
So this is a really importantconversation with your listing
agent Time.
Thanks for watching everybody,or listening on Apple or Spotify
(17:15):
, wherever you get your things.
This is Getting your Edge Outof Right Size.
Your Home and Life podcast.
Thanks for being here.
Take care.
Bye-bye.
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