We believe the ability to have the seller pay for your agent’s commission will vary depending on the type of real estate we find ourselves in. We categorize markets into three types:
- Slow: Buyer’s Market – In a buyer’s market, prices are declining and the inventory, that is, the total number of listings, is not being absorbed by the buyers. Homes stay on the market longer, and only those that have to sell, will sell. In this market, sellers will negotiate their price, pay for repairs and will gladly offer a credit to pay for your agent. In this market, your agent is critical. Their negotiating skills may result in a lower price with better terms for you.
- Hot: Seller’s Market – In a seller’s market, the seller calls the shots. There are not enough homes on the market, prices are firm or increasing, and the buyers outnumber the sellers. Homes may have multiple offers and buyers will do almost anything to get that property under contract including waiving contingencies (loan, inspections, etc.), allowing sellers to rent back their property after the close of escrow (sometimes at no cost) and it may be difficult to convince this seller to pay for your agent’s commission when other buyers are not making this request.
- Stable: Neither a Buyer or Seller Market – Sometimes, there is balance in the market. Home prices are stable, homes don’t sell in a few days but more like a few weeks, and the best homes (best location and great condition) may still warrant multiple offers and a obtain full price, but other homes that do not compare as well, may be willing negotiate both price and terms, and may be willing to pay for your agent’s compensation.