Why Paying Buyer's Agent Fees Helps You Sell Faster

By Erin Catron

I am a multifaceted entrepreneur and real estate leader dedicated to making a meaningful impact.

Are you selling your home and wondering if you should offer compensation to a buyer’s agent? Understanding the financial constraints buyers face can significantly impact your selling strategy. Here’s what you need to know:

Buyers face significant upfront costs. Many buyers cannot purchase a home without paying the buyer’s agent’s compensation out of pocket. When sellers do not offer compensation to buyer’s agents, it creates financial hurdles for potential buyers. Buyers already have numerous upfront costs, including down payments, closing costs, appraisals, inspections, and escrows for insurance and taxes. Adding the buyer’s agent’s compensation to their expenses can be overwhelming because it significantly increases the total amount of money they need to gather before the purchase can be completed.

Limitations of financing options. Most home loans and mortgages do not allow buyers to include the buyer’s agent’s compensation in their closing costs or financing. This means buyers need to pay this fee directly out of pocket, which can limit their ability to purchase your home.

Incorporate compensation into your pricing strategy. Consider incorporating a reasonable percentage of the buyer’s agent’s compensation into your home’s price to avoid this issue. Working this compensation into your pricing strategy ensures your net proceeds remain the same while making your home accessible to more buyers. This compensation can be negotiated when you receive an offer, allowing flexibility for both parties. A great real estate adviser can help you understand how to include all these variables in your closing costs and provide an accurate estimate of your net proceeds.

You expand your potential buyer pool by offering compensation to buyer’s agents. You don’t want to limit the buyers who might be interested in your home by not offering compensation. I’m here to be a valuable resource if you have questions about this or other real estate topics. Feel free to reach out to me anytime. I’ll help you handle the real estate market successfully.