I have been considering the idea of going to a flat fee commission structure, for my buyer clients.
How does this work? Basically, if you use me as a buyer’s agent, at closing, you will get a rebate, a credit for any commission I receive, over $5,000.
Here’s a real life example. We get together and start working together to find you a new home. After a couple weeks, you decide you’ve seen enough places, and find the perfect home. I make an offer on your behalf, it’s accepted, and then closing date arrives.
Let’s assume you are buying a $400,000 home (I’m a great agent, so I was able to help you negotiate the price down from its list of $500,000 – you’re welcome!).
Most condos in the city are sold with a 2.5% commission paid to any buyer’s agent. So, on your purchase, I’d be due $10,000.
What I’m offering is to cut my commission to $5,000, and give the rest, $5,000, back to you.
Obviously, if your purchase price is more, you save more.
If you have been thinking of buying, this year, then this could work out very well for you.
I am only willing to do this for purchases closing prior to the end of 2006. If you want to buy something under construction, that will close next year or after, then I wouldn’t want to do it.
It is probably only a good idea for someone who is ready to buy, but hasn’t seen any properties, yet.
I withhold the right to withdraw this offer, and past and current clients are ineligible (sorry!).
Let me know if I can help in any way.