When a homeowner opts to sell their home without paying commission, there’s a good chance that they will find themselves faced with a Buyer’s agent – that is, a real estate agent who represents the homebuyer.
So what happens when you are contacted by a Buyer’s agent? How do you deal with such a situation? Glad you asked. Here, now, are some tips for dealing with a Buyer’s agent, should the situation arise.
Negotiating with a Buyer’s agent tip #1
Decide on a maximum commission or finder’s fee
If a Buyer’s Agent contacts you with a potential homebuyer, prepare to negotiate a payment that you are willing to pay the Buyer’s Agent for this potential client.
Typically, a Buyer’s agent will want to protect their right to a commission should you elect to sell to their client. In this respect, a Buyer’s agent may present you with a contract, which should identify the client specifically, as well as the commission or finder’s fee agreed upon, and is ultimately designed to prevent you from negotiating directly with the buyer.
Negotiating with a Buyer’s agent tip #2
Sign only for that one client or a specific time period
Do not sign a contract that links you to a Buyer’s Agent for the entire time your home is listed. Sign only if the contract stipulates that the contract is based on this one potential buyer (names must be named).
You can also agree to sign a contract that stipulates that the Buyer’s agent has 48 hours to get you a buyer or the contract is null and void.
That way, you are not committed to this Buyer’s agent for the length of your sale.
Negotiating with a Buyer’s agent tip #3
Ask lots of questions
When you are selling without commission, you have a list of questions that you ask potential homebuyers to ensure that they are serious about home buying. The same should apply when speaking with a Buyer’s agent.
Has the client been pre-approved for a mortgage? Do they have to sell their home before buying one? Are they familiar with the area?
Negotiating with a Buyer’s agent tip #4
Selling your home
Once you and the Buyer’s agent come to an agreement, the buyer will then make an offer that the Buyer’s agent will present to you. At this point, you can counter or accept the offer.
Once the amount is agreed upon, the offer is then signed in the presence of your lawyer.
Buyer’s agent negotiations
Are there any other tips you would like to add? Please feel free to do so in the comments below.
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