Thursday, March 22, 2012

Oh yes, buyers do pay commission; mythbusting

A great, big, old fat juicy myth was busted in style yesterday by a lawyer addressing 100+ North Okanagan Realtors yesterday in Vernon!!  This topic is going to merit a few blogs...but here's the first installment.

Buyer's do pay commission even though, for ease and financing, in our BC system it has been taken from the sale proceeds and paid by the seller at the transaction's end in a high percentage of transactions.

This is going to, sooner rather than later, experience a paradigm shift.  Why?  Because there are different business models out there that would undermine the value a Realtor working with the buyer who has worked hard and has brought the offer to purchase.

But, we've had all along a little used tool...up until now...that makes certain great Realtors are fairly compensated.  It's called the "Exclusive Buyer Agency Contract" and will be the other bookend to a Seller's listing contract.  You are going to be seeing more and more of these.

Not getting paid fairly is no longer going to be an issue as the buyers will know.  SOMEONE IS GOING TO PAY the realtor.  If not through the seller then the buyer will top up or pay the full pop.  We will leave it solely up to an informed seller to decide which properties they wish to see being fully aware of the implications.

If a great Realtor cannot establish the humongous value they bring to the table, they should think again.  If a Realtor cannot establish their own worth and negotiate their own pay -- how effectively are they going to handle your transaction!

More as we go, but I would ask you to pass along information on this very valuable tool that let's great Realtors practice pro-actively instead of reactively!

Stay tuned!

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