From time to time, I see or hear about a REALTOR® that is claiming that her or his services are free.
What do you think? If you asked most consumers, they would say that the seller pays the commissions or fees.
If you think about it, that’s not true.
What is true is that in many cases the seller has agreed to allow a ‘charge’ on the sale of their home that in turn is used to pay a buyer’s agent. But what about a For Sale by Owner? They have not necessarily agreed to anything. What about your buyer brokerage agreement? If its written correctly, it should state that you will earn a minimum or certain amount of money as compensation for your contribution to supporting a buyer through the purchase process. That is unless you do actually work for free.
We also need to think about who brings what to the transaction. The seller brings the house. It’s the buyer that brings the cash. All the cash!
So, I would argue that its your client the buyer, that not only pays your fee, but also the commission earned by the listing agent.
So next time a buyer client asks if your service is free and you are tempted to say yes, think again.
And after all, who out there truly values something that is free?
About the author:
You can read more about the author of this blog by clicking this link - Stuart Neal Broker Owner & REALTOR® .
You can hear and Stuart tell you more on his You Tub Channel - Real Estate Career Mentor & Consultant.
Want more information about becoming a partner and creating a career with our team? Call Stuart our broker owner at: 780-760-2014 ext. 3 or go to our Careers page - Ambergate Realty Advisors Careers.
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