Category Archives: Selling Your Home

Can I Pay the Buyer’s Agent 0% Commission?

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The answer is yes, you can put 0% commission into the MLS. However, is that really something you want to do?

So far no one that has sold through us has tried it. The reason is if you eliminate agents showing your property, you won’t have as much demand for your property, and the lack of demand means you might have to sell for less.

The question is how much less. If you save 2% to 2.5% buyer’s agent commission but sell for 4% less than you would have with more demand, the bottom line is you lost money.

There is no sure way to know if this will happen, so most sellers elect to pay the buyer’s agent commission to increase demand and hopefully sell faster and at a higher price because of that demand.

Keep in mind about 10% of our sellers don’t pay a buyer’s agent commission because there is no buyer’s agent. This is different than putting 0% in the MLS for the buyer’s agent commission. In this case, they offered to pay the buyer’s agent 2.5%, but a buyer came to us through our Website or through Zillow and they did not have an agent and were willing to let us represent them in the purchase. You can learn more about this option from our blog post titled “How to Eliminate the Buyer’s Agent 2.5% Commission“.

Backup Offers From a Seller’s Perspective

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Our recommendation is not to take a backup offer and here is why.

When you take a backup offer, you as the seller have locked yourself into accepting that offer should your current escrow fall out. You could get an all-cash offer for a higher amount and it does not matter, you have given up the right to take a better offer.

However, the buyer in the backup position is not locked in at all. They can cancel at any time, and as a matter of fact, even if they have lost interest in your house, they do not have to cancel, they could just leave it in place and when you finally put them into escrow they still have the 7 to 12 day inspection period to cancel for any reason.

It also excludes you from going out to multiple buyers if you fall out of escrow to see if you can get a higher offer. Many times when buyers have another chance to buy a property they will increase their offer as they know last time they were too low.

I heard of one situation where the seller regretted putting an offer in a backup position because they have a higher cash offer. Now the seller is trying to get around taking it by withdrawing the listing and a lawsuit was filed by the buyer saying the seller must take their offer.

So in my opinion, why exclude yourself from taking a higher offer, and lock a buyer into a backup position, when they have no obligation to you and can cancel at any time.

You might wonder why some Realtors recommend taking a backup offer. They recommend taking it because it is better for them, not for you. They know if the current offer falls out, they don’t have to do any work as the backup offer automatically goes into escrow, and you can’t change Realtors. Once a backup offer is in place they lock their commission into place, even if they mishandle your current escrow and it falls out.

They are not recommending this because they think it will get you the highest-priced offer should you fall out of escrow. They know you are being locked in to the backup offer and can’t accept a higher offer even if it is all cash.

How to Eliminate the Buyer’s Agent 2.5% Commission

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How to Eliminate the Buyer's Agent 2.5% Commission

One exclusive advantage we offer is if you find a buyer without a buyer’s agent, we will represent both sides for the $3,500 flat fee or the 2% full service fee.

Because we are representing the buyer too, this gives the buyer the confidence that they will get their questions answered and get the support they need. If we were not representing the buyer they would not feel comfortable and would request another agent to represent them, and that agent would want a 2.5% commission.

This option gives you an opportunity to eliminate the 2.5% commission paid to the buyer’s agent.

Many sellers find buyers by word-of-mouth through friends, family, or even social media.

The chart below shows you total commission saved with no buyer’s agent.

Understanding Our $3,500 Flat Fee vs. Our 2% Full-Service Selling Options

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Understanding Our $3,500 Flat Fee vs. Our 2% Full-Service Selling Options

Which selling option meets your needs best?

The big difference is with our full-service option an OahuRE.com Team Realtor will meet you in person and view the home you are selling. With our $3,500 option we do not meet you in person or see your home in person. With both options you do get full representation from start to finish.

With our $3,500 option we prefer to work via email, although we are available via phone when needed. With our full-service option, you decide with your dedicated OahuRE.com Team Realtor how you prefer to communicate. If you prefer phone calls and require in-person meetings, then full service is your best option.

With our $3,500 option I represent you. With our full service option a Realtor on the OahuRE.com Team would represent you.

With our $3,500 option I will do a Home Value Video going over a suggested price range using OahuRE.com and send you this video along with the comparables I am looking at in the video. With the full-service option, the OahuRE.com Realtor will see your home in person and provide comparables and a price range based on their in-person visit. With both options you decide the price you want to list at.

With the full-service option photos are included and we pay for them. With the $3,500 option you pay our recommended photographer around $200 for photos, or you can provide photos that you have taken yourself.

With our full-service option the Realtor from our team can do an Open House for you. With the $3,500 option you can do as many open houses as you like, but you would sit them.

So which option will meet your needs best? It depends on you. If you are used to a traditional Realtor and appreciate meeting your Realtor in person then full-service is the way to go. If you are comfortable using Email and handling a few more things yourself and like the idea of saving money on commission than the $3,500 option would be for you.

You can read more about the benefits of our $3,500 Selling Option and our 2% Full-Service Selling Option to help you make a decision.