Since the Buyer’s Agent is paid a percentage of the sales price – a higher selling price means more commission for the agent – why would the agent work to get a buyer the lowest price possible? What incentive does a buyer’s agent have to negotiate a lower price?
Good Buyer’s Agents Don’t Focus on One Time Fees
Good buyer’s agents know the key to long term success is not about maximizing commissions on one specific deal. While the Buyer’s Agent will receive less commission by negotiating a lower price for their client, they can earn far more over the long term. Professional agents know that long term success lies in creating a stream of referral clients that will produce ongoing business for years. Appreciative clients often refer an agent who has done a great job to their friends, relatives and business colleagues.
Let’s Look at the Numbers
Suppose a Buyer’s Agent successfully negotiates a $20,000 price reduction. Assuming a 3% commission (keeping in mind this number is just an example as commissions are not set), the Buyer’s Agent’s commission would be reduced by $600.00 ($20,000 X 3%). We like to look at that “reduction” as an investment in our future business.
Saving Money = Happy Buyers, Happy Buyers Tell their Friends
I don’t know one buyer who wouldn’t be thrilled to keep $20,000 in their pocket if they could. Very happy buyers tell their friends, relatives and business colleagues what their agent did to save them money. Very happy buyers also remember what a great job their agent did and will likely use them when they sell their house. Do you see where I’m going with this? A $600 “investment” for potentially one or more new clients seems to be a wise business strategy. As those of you in marketing and sales know, referral business is the easiest to convert, the cheapest to acquire and the most likely to close. We would “spend” $600 every single day if it meant another happy client.
Buyer’s Agents who Focus on Short Term Hurt their Clients and Themselves
There are still agents out there who focus on maximizing the commission on each “deal” and to us, that means they aren’t doing their job. The buyer’s agent’s job is to put their clients interests above all others – including their own. If your agent isn’t doing that for you, fire them. We are very serious about our commitment to get our clients the best deal possible. By exceeding our clients expectations, we create raving fans and future business. Want to repay us for a job well done? Tell your friends and family about us!
Looking for a Buyer’s Agent Who Will Get You the Best Deal?
We’re looking for clients who will appreciate us for getting them the best deal. Check out our Austin Home Buyers page to learn more about our team and how we’re different than most Realtors. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.