A Revolutionary Take On Buyer Representation
For years the real estate compensation model has encompassed an injustice to the Home Buyer. In the traditional compensation model the Buyer’s representative is paid at a successful closing by the company representing the Seller (listing company) or by the Seller if he/she does not have representation.
The injustice to the Buyer lies in the fact that the incentive to negotiate hard by his or her representative (Buyer’s Broker) is taken away. After all, the Broker’s income -customarily a percentage of the purchase price – depends on the height of this purchase price.
Example: Buyer finds a home with an asking price of $250,000. Buyer’s Broker gets offered i.e. 3 % of the final purchase price by the listing company. With a Full Price offer the compensation would be $7,500 to the Broker’s company. With a purchase price of $230,000 however, that compensation would drop $600 ($20,000 * 3%). In other words, maximizing the Buyer’s benefit, lowers the Broker’s benefit.
Not withstanding the large number of honest brokers out in the field, Real Estate agents are human and have bills to pay.
Property Mill Real Estate Group LLC employs a compensation plan that more or less warrants that your representative can truly say that the Broker is not influenced by Seller offered compensation amounts. To accomplish this Property Mill Real Estate Group LLC works with Fixed Fees. Any compensation offered by a seller or Listing Company that exceeds the Fixed Fee corresponding with the final purchase price is rebated to Buyer at closing to assist with closing costs.
In certain situations, Buyer’s lender may not allow for Broker Rebates. In those circumstances Property Mill Real Estate Group LLC donates the excess of compensation to a charity of Buyer’s choice.