Saw this at a real estate group:
Long. But worthwhile:
Well, I just seen how the new commission structure is going to harm Buyers.
We had a $550,000 listing in the MLS and a buyers agent brought a buyer, the agent was unhappy with the split we were offering. Keep in mind that the split was half of the listing commission. The listing agent was making no more money than the buying agent. However, the buying agent had exclusive buyers agent agreement that entitled them to just a little bit more commission(.5%)This offer had about four counter offers and each time the agent asked for the additional commission and the seller said no. All other terms of the contract had been agreed to except for this additional commission meanwhile, another agent come in and wrote a similar price offer without asking for the extra commission. The seller agreed to accept that offer.
So this exclusive buyers agency agreement cost the buyer their home and I bet they really didn’t care whether their agent made this additional amount of money. They just wanted the house. as a broker owner I cringed to think of the liability this agent just put her brokerage into with the buyer losing the house over this small amount of commission that they wanted.
To expand on the above ;
The buyer lost the house because the buyers agent wanted an additional 2750 in commission. The buyers agent was told on three separate counters no. At the end of the day, the buyers agent ended up with a no sale so holding out for an additional 2750 cost the agent the sale and 13750 in commission. I see a lot of comments where they say well I’m worth this or I’m worth that at the end of the day. If you do not get it a closed deal with that buyer you make zero. we all know how hard it is to find homes for buyers in this current market. Their contract might run up with this buyer and they will go elsewhere since they’ve lost a house that they bid full price on and lost due to commission.
Also, the seller did not give the buyer the chance to remove this from their last counter offer as they received another offer without that request, so they just accepted the other offer. Maybe if we were in a buyers market these buyers could be requesting all this commission restructured in the contract but in a sellers market it is going to be very difficult.