Most real estate buyers don’t think about it. They start looking at homes or investments with someone they know and like, or perhaps just ran into, and end up purchasing through them.
I expect many buyers would tell me that working with a Realtor® is free when purchasing. This is not true.
Hidden inside every listing placed on our MLS® System is a commission offered out to the Realtor® that can find a buyer. You might be thinking, "So what?" This arrangement is troubling and for 4 reasons:
- It will most likely be you that finds the home or investment you wish to see, not the Realtor®.
- The Realtor® you are working with is representing you. How can they ethically receive money from the seller? Is this not a conflict of interest?
- The ‘finder’s fee’, or commission as it’s more commonly regarded, can sometimes be substantial. In the Edmonton market, most buyer agent commissions can be in the $8,000 to $9,000 range.
- It’s your money anyway. Think of it this way. The seller and buyer bring different things to the transaction. The seller brings the real estate to the table. So what do you bring? The money of course. You exchange your money (and the bank's usually) for a home or investment.
The acid test is do you see value in paying your Realtor® this way? If you are one of those buyers that needs to see 20 or 30 properties before you buy, then maybe there is.
However, the modern buyer spends about 2 months on line researching and only a few days ‘in the field’ actually touring before they buy. Most buyers look at 6 to 10 houses. This can be accomplished in a day. Is $9,000 dollars too much to pay for this service?
Is there another way? YES.
Ask your Realtor® to support you on an hourly basis, ie you pay them only for the time you need. Can this work? We do it all the time. We service our clients in exchange for a reasonable hourly based fee, paid as we go.
What happens to that huge ‘finder’s fee’? We give it to you, the buyer of course. Last year we rebated not less than $8,200 in cash after our buyer clients completed a purchase.
Got questions? To reach our broker owner Stuart Neal, please call him at: 780-760-2014 or visit www.CashBacktoBuyers.com
We Pay When You Move In
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