Get a Property Heavy weight on your team and tip the scales toyour advantage
When it comes to purchasing property, you want to ensure that you’re making a sound investment while securing the best possible deal. Many buyers turn to buyer’s agents to guide them through the complex world of real estate. However, not all buyer’s agents are created equal. Enter the valuable buyer’s agent, a game-changer in the property buying process.
The Commission Conundrum
In the real estate market, standard buyer’s agents typically charge a fixed commission, often around 2% of the property’s purchase price. This fee structure, while common, doesn’t provide an incentive for agents to push harder for a better deal. They earn their commission regardless of whether they negotiate a lower purchase price for you.
The Valuable Buyer’s Agent: A Different Approach
Valuable buyer’s agents stand out in the industry because of their unique approach to fees and incentives. They charge a standard commission, just like other agents, but here’s where they differ: they operate with a performance bonus structure. This means that their earnings depend on their ability to secure the best deal for you.
A Practical Example
Let’s consider a practical example to illustrate the power of this approach. Imagine you’re looking to purchase a property listed at $1.5 million. A standard agent, charging a 2% commission, would close the deal at that price, earning a $30,000 commission.
In contrast, a valuable buyer’s agent, working within the bonus structure, is highly motivated to secure the best possible deal for you. They negotiate the price down to $1,450,000, reducing their commission to $29,000. Now, you might be thinking, “What’s the big deal? It’s just a $1,000 difference.” But here’s where the real savings come in.
The Savings Game
The $1,000 commission difference may seem modest, but when you look at the net cost savings for the purchaser, it’s substantial. You’ve just saved $50,000 on your property purchase. If the valuable buyer’s agent is rewarded with a performance bonus (let’s say an additional $5,000 commission), your total cost comes to $34,000.
Now, let’s reflect on the bigger picture. You’ve not only saved $50,000 on your property purchase, but you also have the assurance that the valuable buyer’s agent is working diligently to serve your best interests.
Breaking the Mold
The bonus structure disrupts the traditional real estate fee model. The standard fixed fee, as set out in legislation, doesn’t incentivize buyer’s agents to go the extra mile. In contrast, the bonus structure aligns the buyer’s agent’s goals with your goals. They’re financially motivated to secure the best deal for you, rather than simply closing the transaction.
Unlocking Savings and Peace of Mind
If you’re in the market for a property and want to maximize your savings while enjoying the peace of mind that your agent is committed to your best interests, it’s time to consider a valuable buyer’s agent. Not only do they bring superior negotiation skills and an accurate understanding of property values, but they’re also incentivized to perform at the highest level. The bonus structure transforms the buyer-agent relationship into a win-win, ensuring that your agent is working relentlessly to secure the best deal for you.
The table above illustrates the cost comparisons among different types of agents. As shown, the Valuable Buyers Agent, operating within the bonus structure, secures the best deal for the purchaser and provides significant cost savings.
Advanced Buyers Agents have a model and process that provides customers with a unique competitive advantage and a re engineered way for buyers to purchase.
They back their experience and market knowledge.
How? Within 24 hours of identifying the ideal property they produce a Fair Value (FV1) this adjusted on a physical inspection to create an adjusted price Fair value (FV2). This FV2 is the line in the sand. It will also be offered with a tight range tolerance around the target value. Outside of this range the property is exceeding Fair value, or below it is exceptional value. Talk us about how a real Valuable Buyer’s Agent can give you total clarity on property value and create greater transparency.
The performance bonus is a guarantee that your interests are being best served. They are trigged only on success and usually reflect an agreed discount threshold or is based on decreasing price or what I refer to as a “Performance Waterfall Commission” for the lower price paid… the more of the negotiated price is reduced the more the Purchaser saves and the more the Professional Buyers Agent makes. However, at all times the purchaser receives a clear price saving advantage.
If you want a heavyweight negotiation and market insight advantage get in touch.
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