4 Tips for Negotiating With a Buyer’s Agent

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.

Negotiating with a buyer's agent

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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.

If you are interested in selling or buying a home commission free, visit ComFree.com today.

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  1. Sadworld says:

    Realtors waste your time with showings with people that are really not interested but they talk them into it anyways and pick your house apart. Thanks from me and my family Manitoba realtors 🙂

  2. Jane Kennedy says:

    Hello Runeash, if you are a ComFree client, we recommend that you contact ComFree customer service or the legal hotline for questions about forms and documents. You can visit http://comfree.com/ and select your province to find all the contact information that you need.

  3. Runeash says:

    Great article. I currently am in this situation where the buyers agent is asking me to sign the exclusion listing agreement with 3% before he can even show the offer legally. Which form (201/202) can i ask himto use to make it specific to the client. Or if he can just request comission from buyers agreement in which case i take it buyer would have to pay in addition to offer price reducing the offer price for me?

  4. Rosy Saadeh says:

    Thanks Ronaele, it’s nice to see that change is a good thing!

  5. Ronaele Pound says:

    I am a realtor and in YOUR defense, there is always the option of having my BUYER pay the commission or SPLIT the commission so the seller is not having to take on the load of it. I’m excited to see industry change. I always work with a buyer broker agreement before taking buyers out (just like what a listing agreement sets out, except with respect to buyers)…in this it stipulates what we expect from our working relationship. This includes if they are willing to pay the commission or even half of it. If not, then all of us know up front where we will go. CHANGE IS GOOD. The FSBO market is just a frustrated bunch and there is more options than having the seller always pay. If your house is THE ONE…then that’s that and everyone is happy. Realtors & ComFree (or WeList or Private Guys) are NOT enemies…we are undergoing GOOD change…so let’s all embrace it & get the job done honestly & professionally within our professional means & expertise. Congratulations ComFree on your launch of the Commonsense Network Brokerage.

  6. Terry says:

    I love this article, it is incredibly useful, as sometimes people selling their homes don’t realize that a Buyer’s agent’s commission is totally negotiable.

  7. Bill Carroll says:

    Excellent article. One of the reasons I became a buyer’s agent was to level the playing field for all participants of the deal. In that vein, I will gladly pass this article on to any fsbo I contact on behalf of my buyer clients, although I don’t know that 48 hours is enough time to allow my client to view the property.

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