Why Signing a Home Buyer’s Agreement May Lead to Higher Home Costs

Understanding the Cost Impact of Buyer’s Agency Agreements

When you sign a buyer’s agreement, you may be prepared to pay more for your residential property due to several factors:

1. Agent Commission Negotiation: The buyer’s agreement typically outlines how much the licensed real estate agent will be paid, which can be a percentage of the home purchase price. If this real estate commission is higher than what might have been negotiated without a Buyer’s agreement, it can increase your overall purchase cost.
2. Real Estate Market Dynamics: Committing to a licensed real estate agent through a buyer’s agreement can limit your options in negotiating with sellers. If the seller knows you are working with an agent who has a set commission, they may not feel as compelled to negotiate on price or concessions or the amount of commission may stand in the way of your offer being accepted.
3. Increased Competition: In competitive markets, having a buyer’s agent may cause time delays as opposed to connecting directly with the seller (as we allow & encourage) when using ComFree. Additionally, needing to factor in buyers agent commissions may make your offer less competitive.
4. Potential Additional Fees: Some agreements may include additional fees beyond the standard commission, such as administrative or brokerage fees, which can further increase your total expenditure when purchasing a home.

By understanding these dynamics, buyers can better navigate their agreements and potentially mitigate increased costs. When buyers choose a Benefits of selling with ComFree Realty, they can be certain that no middleman will stand in their way. Through our simplified home selling process with ComFree, commission costs will not be a barrier.