SELLER STRATEGIES IN A CHANGING MARKET - by Cindy Abraham - Inside Hillcrest Newsletter Hollywood Florida

Is paying the buyer’s agent worth it for you? Traditionally, most home sellers have compensated both the selling agent and the buy-side agent from the proceeds of their home’s sale. Today, homebuyers must sign an agreement to guarantee payment terms with their agent before they begin touring homes. Many buyers still look for home sellers who are willing to write the cost into the sale. But as a seller, what’s in it for you?

You can introduce more offers, since many buyers will not want to pay cash.
You can increase your asking price to cover the cost, if the market supports the value.
Buyer-side agents will help sell your home by scheduling tours with qualified home shoppers.
A buyer’s agent organizes many aspects of the sales transaction, ensuring buyers can close the deal.
You will avoid the need for dual agency, where your agent must represent both you and the buyer rather than focusing on your best deal.

In the end, your willingness to negotiate buyer’s agent compensation into a deal can help you meet your goal — selling your home at the price you’re comfortable with

IF YOU ARE THE SELLER

Seller can choose to offer cooperating compensation (which is paid broker to broker)
Seller could choice to entertain offers which include compensation for the buyers broker as requested by the buyer (from the proceeds of sale)
Seller could offer a concession to the buyer which the buyer could apply to closing costs, pre paids or their buyer’s agent commission due (or any combination of the above options)
Lastly, Seller could refuse to offer any compensation. (least advisable as it will prohibit many buyers from being able to afford to purchase a home)

IF YOU ARE THE BUYER

Buyers Agents who have signed Buyer Broker Agreement with the buyer are compensated in one of the following ways

Buyer could write a check to the buyers brokerage based on the commission agreed upon in their buyer agency agreement
If cooperating compensation is offered (traditional co-broke fees) could cover the buyers agents agreed up commission
A seller concession could be applied to the buyer’s agent commission owed
Buyer may choose to include the commission payable to the buyer’s agent in their offer (“Buyers and Sellers agree that 3% of the offer price will be paid to (Broker Company Name) as commission owed to Buyers Agent from the Buyer”. (Check with mortgage lender to ensure compliance)
Or a combination of the above options