I used a realtor on the buy side and had a great experience, so now I’m considering his offer to sell my old home. The biggest sticking point in the initial agreement they drafted is that if we find an unrepresented buyer, they want an additional 2.5%. Assuming this buyer can write a legal offer, this seems unfair to me. To be honest, I think finding an unrepresented buyer is unlikely since it seems like everyone around me uses realtors. I’m willing to pay that 2.5% to a buyer’s agent. I also want to add an addendum or line item explicitly forbidding my prospective agent from referring unrepresented buyers to his brokerage for this sale. I’m going to ask for these changes regardless, but I’m curious how standard this is and how much other people would care.
It’s not uncommon for realtors to ask for an additional fee for unrepresented buyers. They often feel that they put in extra work to handle negotiations without a buyer’s agent. However, if you’re concerned about fairness, it’s totally reasonable to negotiate this point.
I’ve seen similar clauses before, especially in competitive markets. Your willingness to pay a buyer’s agent is a good approach, and it might make your home more appealing to buyers who are represented.
In a strong seller’s market like yours, it’s common for realtors to have additional clauses to protect their commission. If the unit is desirable, an unrepresented buyer might not be as big of a concern. But definitely communicate your terms clearly.
I’m surprised they would even want this if you’re already using the same agent for selling. It seems a bit excessive. What if you just tell them you’re not comfortable with that additional fee?
Blane said:
I’m surprised they would even want this if you’re already using the same agent for selling. It seems a bit excessive. What if you just tell them you’re not comfortable with that additional fee?
That’s the plan! I’m going to bring it up and see how flexible they are.
Given your strong seller’s market, you might find that most buyers will have agents. If that 2.5% could deter buyers, it might be worth pushing back against it in negotiations.
It’s good you’re considering the buyer’s perspective too. If most buyers in your area are working with agents, this extra fee might not be necessary. It’s worth having a candid conversation about it.
It sounds like you have a solid plan. Just be clear and assertive about your expectations. If the unit is as nice as you say, it should sell easily without unnecessary fees.
I would definitely challenge that clause. It seems like they’re trying to cover all bases, but it shouldn’t be at your expense if you’re willing to work with buyer agents.