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How can having your own agent be free?
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1. How much will hiring a professional Accredited Buyers Representative (ABR) cost you as a buyer?
It's 100% FREE to you.
2. How can this be true? Your Buyer's Agent helps you locate a property, make the offer, negotiate and carry it through closing (inspectors, mortgage company liaison, etc). At the closing table, your agent will receive a check for a portion of the commission that the SELLER has agreed to pay his/her agent. As the buyer, you pay nothing at all for the help. And that help can be very extensive. It's a very good deal for buyers because they get their own representation. It's also a good deal for the sellers and the seller's agent because they receive help in marketing the home. Everyone wins.
2. How is your agent compensated?
Compensation varies based on the MLS agreement with the seller's agent. For example, the seller's agent might charge the seller 5% (no set amount - it's negotiable between the seller and that agent) to sell the home. That is usually all that the seller will ever pay that agent for that deal. The agent advertises the property to other agents via the MLS, and on the MLS, states what commission the buyer's agent will receive for bringing a client who buys. Usually, the selling agent just splits what he or she is getting from the seller for marketing the home. At times the split is not an even split. Factors such as market demand and marketing costs impact the split.
3. Why doesn't the listing agent just sell the home directly and keep the full commission?
The agent for the seller offers the agent for the buyer a commission to entice buyer's agents to bring clients to the listing. If the selling agent finds a buyer on his/her own, that agent just keeps the full percentage, say 5%. This rarely happens. Why? Leverage. Individual agents work with limited numbers of clients. The likelihood that an agent will have a client that needs one of the homes that that agent has listed is remote. However, through the MLS, that property is exposed to thousands of agents any of whom may be working with a client perfect for that listing.
That's it. No cost for my assistance to you ... thanks to the design of the MLS system. (More on the MLS)
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Chris DeLoach 843-654-4578
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