Why do my buyers pay my commission and not the seller?

Mainly because of the conflict of interest it causes.

Imagine that a doctor does not get paid for his/her job but he gets paid only by the pharma companies according to which or how much medicine he/she sells.

It is exactly the same reason why a seller should not pay commission when I am hired by the buyer to find an apartment.

If the agent is limited to selling only the listing on which he already agreed with the seller, the buyer has drastically reduced options to buy, this is understandable for everyone.

If the agent has to pick between 2 choices for his buyer, should he forget how much commission he can get from one or another? There are cases when one seller would pay more than the other or he/she has to split the commission with another agent on a sale, so -50% of the payday.

In most cases the best apartments get sold in days. Many times the seller can sell those without the help of an agency. The buyer who is not paying buyer’s commission will not be able to buy those, mainly due to lack of time to convince the seller to sign the contract before a viewing can be organized.

If another agency has a good listing, why would they sell it to my buyer with my help for half the commission as they would have to pay 50% commission to me? They are totally capable of doing that without me, again my buyer loses.

But not if he pays the commission!

Many advantage of the buyer’s commission:

• fast communication: I can call sellers, agents, anyone who has a good flat and set up  a viewing without any prior negotiation, time effective. 

• If the agent is 100% sure that the buyer buys from him/her. It is possible for him/her to tell a totally unbiased opinion or even talk down a buyer from buying something rushing

• Totally without any conflict of interest. Agent and buyer are on the same page, same side. Both of them are aware of the how much the agent earn with his job, which is again, hidden from the buyer if the seller pays the commission, therefore gives possibilities to misunderstandings and abuses

How does it work with Red Roofs real estate, steps:

• Details, details, details:  The first meeting is all about what the buyer wants, where, wants to move in, wants to invest, renovate, already renovated.  The more the agent knows about the buyer’s plans the better job he can do

• Contract: They sign a buyer’s agreement contract in which it is stated that if the buyer buys any apartment from the agent, he is obligatory to pay the Buyer’s commission

• Search begins:  Without my hands tied back, I am free to call and visit any flat on the market. Mostly i pre-visit a flat then decide if its the one. In most cases the search comes down to 2-3 flat, that we visit with the buyer, we make an offer and close the deal

• purchase contract is being prepared and at the day of the signing of it, the buyer pays the agreed commission