Buyers are so used to the services of the buyers agent being explained to them as "FREE, I get paid by the seller!" that they have no loyalty in many cases because agents do not explain the buying and transaction process correctly. Many buyers do not understand that agents are on a commission and do not get paid unless they sell a house and that as a buyers agent they represent the buyer and their loyalty and fiduciary duty is to the buyer..
How about if the buyer paid a retainer, would they select their agent more carefully? What about paying on an hourly basis like an attorney? What fee structure as an agent or as a buyer would you prefer?
Agents representing both the seller and the buyer for many years have been paid by the seller at settlement. This is so ingrained that many people find it hard to look at it any other way. Even with the introduction of buyer agency this has not dramatically changed.
Sometimes it is merely a matter of looking at the issue through a different lens. For example if the buyer does not fund the transaction there is no money to pay the agents. So maybe it is the buyer who really pays for the seller's representative as well as his own buyer's agent.
Whilst it might be a strain to pay the buyer's agent out of pocket, would it be acceptable for the mortgage company to fund the deal with the buyers agency fee included? In a sense they already do. That way the buyer pays for their own agent, allowing for a price reduction in the current scenario, only for that price to be corrected to include the buyer agent. It is actually a wash but for many attorneys a more correct procedure removing any vestige of conflict of interest.
Whilst we discuss buyer agent fees, how about a flat fee rather than a % of purchase price. Do agents really give more care to a buyer of a larger and more expensive house. Whilst the multi million dollar buyer may require and demand different treatment, the care used in the negotiations and the transaction should not alter. What is a fair price for your services?
Open to ideas and suggestions.
;)
;)
