What Has Changed
The process of buying a home has fundamentally changed. Previously, a buyer had no obligation to pay the agent representing them because the listing agent offered a commission to the buyer’s agent advertised in the Multiple Listing Service (MLS) and this fee was non-negotiable. Your agent gave you access to properties you wanted to see, and when you found the right one, wrote up and offer and knew, with certainty, what their commission would be if you successfully bought that property.
This is no longer the case. Now a buyer must sign a “Buyer Representation Agreement” and agree on two items: if will you only work with that agent for a set period (an exclusive relationship); and how much will that agent be paid if they find the right property for you. If the seller is not offering any or enough commission, you may be obligated to pay your agent.
For example, you agree to work exclusively with an agent and pay them 2% of the purchase price of any home. After showing a few properties, the agent finds the perfect home for you at $750,000, but the seller is only offering a commission of 1%. If the seller does not agree to pay more during negotiations, you may be obligated to pay your agent $7,500 out of pocket and the seller would pay the other $7,500. You could try to save money by having the listing agent represent you, but this can be problematic. The listing agent has a legal obligation to represent the seller and may not vigorously fight for your interest.
Who We Are
Flat Fee Buyer Brokers is a subsidiary of Progressive Property Management, Inc. (DRE #01958885) and Partners Real Estate Group. We have close to 70 agents who work for our firm and may assist you. We also work with agents outside of our company who wish to participate with this business model.