Fizbomap Blog
Idaho For Sale by Owner tips, news and updates
Buyer’s Agent Compensation
Posted by Matt Newbill in For Sale by Owner, Tips on November 6th, 2006
As a for sale by owner, the question always arrises from real estate agents, “How much commission would you pay me to bring you a buyer?”. For many, the answer is 3%, but is this necessary in selling your home? Wouldn’t you be better off lowering your home’s price and offering up less-than-traditional compensation to a buyer’s agent? After all, it’s not the buyer’s agent that wants the home, it’s their client, the home buyer.
But won’t offering less agent compensation lessen the possibility of an agent bringing a buyer? It could, but you have to keep in mind that it’s the home buyer that is wanting to buy YOUR house, not the agent pushing it. If they truly want the home, they will find a way to gain access and get the job done, even if their agent refuses to show the home due to a lesser amount of compensation. With so much information readily available online, it’s easy to see how a potential buyer could go straight to the seller.
Here are some stats to back this up: In our local MLS area (Greater Treasure Valley, ID) from Oct 05 to Oct 06 there were 27,000 unique MLS numbers generated. Keep in mind this includes active, sold, pending, expired, canceled and withdrawn listings. Of those 27,000, 44% sold. 4% of those that sold offered less than the traditional 3% buyer’s agent compensation. 389 of 27,000 listings were MLS Entry Only or Limited Service. (this means the sellers weren’t being represented in a client relationship with a brokerage, i.e. selling on their own using a service similar to Fizbomap.). Of these, 42% sold, pretty close to the other figure. Of the ones that sold, 30% offered less than the traditional compensation.
What does this mean? It means that it doesn’t matter what the agent compensation is, but more importantly that you gained full market exposure and had competitive pricing.
Condition, location, price and full market exposure are the four elements that go into selling property. You can easily solve two of them (price and full market exposure) by using the services of Fizbomap. By enlisting the help of Fizbomap, you can gain full market exposure while gaining the competitive pricing edge over other comparative homes. How is this possible? Fizbomap charges a flat advertising fee to list your home, so you save thousands on commissions. In turn, you can effectively lower your asking price whilst retaining your bottom line.
Give us a try today and see just how easy it is to sell on your own.
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