A new Buyers Broker Business Model? Scared this buyer right away!
An out of town client recently contacted me regarding becoming his niece's buyers broker for a townhome in the area. After asking many prequalifying questions of this gentlemen I was a little hesitant to meet with him and his wife who would be leaving that day and flying back to Tennessee. A plethora of questions on representation and 'who works for who' so I decided that maybe a face to face meeting was just the thing we needed to clear things up.
So upon arrival at my office, the whole story unfolded about a new buyers broker program that these folks stumbled upon on the internet. They understood the concept of a buyers broker being a benefit for any buyer in today's market which was great. The program with the other agent was anything but simple! Here's what I could get from the other agents contract:
2) The seller or buyer would pay the commission depending on the situation and home.
3) Bonus agreement to agent: $150 per thousand above and beyond the commission stated depending on the sales price. So this agent wanted to be compensated for the lowest price negotiated with the seller. An example being, if they aggressively negotiated the selling price another $10,000 then their 'bonus' would be another $1500 due from the buyer.
Doesn't really seem like a bad business practice does it? But ... the whole program was presented in such a confusing manner the buyer's uncle didn't want anything to do it. There were more additions and complications - If they do this 'I get this' thruout the entire agreement. They wanted to be compensated somehow 'above and beyond' the normal commission rate for the sale.
'KISS' - my business model. Keep It Simple Stupid. This is a classic example of an 'engineer type' writing up and complicating an all encompassing buyers agreement!
The buyer just didn't feel comfortable and didn't want the hassle. Isn't it complicated enough already?
Lyn Sims (847)230-7324 at RE/MAX Suburban
I proudly serve and sell real estate in the Northwest Suburbs of Chicago. If you are thinking about purchasing or selling your home in the communities of Schaumburg, Elk Grove Village, Hoffman Estates, Roselle, Palatine, Medinah, Itasca, Bloomingdale, Carol Stream, Bartlett, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and more importantly, want to work with a local area expert, contact me immediately.
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Lyn...it is programs like these that will drive most of the buyers to a reputable agent