When you get a real estate buyer discount, you are ahead of the game before you even make an offer. The buyer's discount is a cash discount that the agent gives to its customers after the closure of the deposit. It's legal, and it's free, because the IRS knows that it was your money to start. The following two scenarios show how much money you can save.
When you get a 66% discount from the buyer:
You pay: 588,000 US dollars
Seller receives: 600,000 US dollars
Your agent is holding: $ 6,000
If you are using a traditional real estate agent:
You pay 600,000 USD
Seller receives: 600,000 US dollars
Traditional agent holds: US $ 18,000
The huge difference is that the regular agent who represents you holds a huge $ 18,000 of your money. For the record, yes, it is your money; it comes from a loan that you get from a bank.
Most homes sell only 1% more or less than the asking price. If you offer $ 594,000 per house in the amount of $ 600,000, the seller will receive $ 594,000. However, with your discount to the buyer, you begin negotiations in the amount of $ 588,000 instead of the asking price of $ 600,000. This is due to the fact that you received a buyer discount of up to 66% of the commission received by your agent. Your discount can be up to 2% of the purchase price of your home.
If you live in the Midwest of the United States, and the houses cost only one hundred thousand dollars, it may be reasonable for an agent to make $ 3,000 per transaction. If you live in California or, more precisely, in the Bay area, where the average price of housing can reach 900,000 dollars, it makes sense to get a discount. You do not need to pay an agent of 27,000 US dollars for representing you in a single transaction.
Buyer discounts are a victory, a victory, a victory, a situation.
You won because you get your new home and buyer discount.
Seller wins because they sold their house.
Your agent wins. because they earned your business.
