{"id":18328,"date":"2021-07-18T07:28:21","date_gmt":"2021-07-18T14:28:21","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=18328"},"modified":"2021-07-18T07:28:21","modified_gmt":"2021-07-18T14:28:21","slug":"overnight-news-why-do-i-pay-buyers-agents-more-than-i-pay-myself-because-theyre-worth-it","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18328\/overnight-news-why-do-i-pay-buyers-agents-more-than-i-pay-myself-because-theyre-worth-it\/","title":{"rendered":"Overnight News: Why do I pay Buyer\u2019s Agents more than I pay myself? Because they\u2019re worth\u00a0it."},"content":{"rendered":"

\"Ya

\u201cThe best thing about sharing food with your dog? You get to have some,\u00a0too!\u201d<\/p><\/div>After actually reading his settlement statement, not as common as you’d think, a seller remarked that I had paid 60% of the sales commission to the Buyer’s Agent. Why hadn’t I taken the lion’s share, or at least split 50\/50? My answer was simple, one you will have read here before:<\/a> Don’t bind the mouths.<\/p>\n

Brian Brady is going to show Buyer’s Agents how to bring home the bacon by first delivering the goods,<\/a> but I prize Buyer’s Agents just the way they are for their aboriginal and sine qua non<\/em> function: Brokerage.<\/p>\n

Brokerage is at its essence the introduction of buyer to seller, and Brian is correct that just that much is very easy to do without Buyer’s Agents by going to the Realty.bots. That’s how we recruit tenants for the rental homes we manage, since we don’t want Tenant’s Agents coming between us and the principals, anyway.<\/p>\n

But we do all our own vetting on rental applicants, so a Tenant’s Agent is doing literally nothing of value to us but<\/em> introducing his client to us.<\/p>\n

Not so Buyer’s Agents. Their introductions come with elaborate qualifications \u2013 along with someone to do most of the scut work, while<\/em> absorbing much of the downstream liability. In short, a Buyer’s Agent is a Sub-Agent for whom I bear no legal responsibility. I pay them 60% of the sales commission and they do 80% or more of the actual effort it takes to get to closing. I don’t hate those numbers at all \u2013 and we always<\/em> pay the whole damn pizza, regardless of what I’m getting.<\/p>\n

With a Tenant’s Agent, I’m paying for the referral and nothing else \u2013 pure brokerage \u2013 and therefore we don’t pay: I can attract thousands of semi-focused looky-loos for ten bucks a week on Zillow \u2013 and I only need one motivated, qualified party to score.<\/p>\n

But with a Buyer’s Agent, I am temporarily onboarding a very dedicated, very focused, very highly-motivated personal assistant\/transaction coordinator \u2013 for this one transaction. We’re as careful about the agents Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cThe best thing about sharing food with your dog? You get to have some,\u00a0too!\u201dAfter actually reading his settlement statement, not as common as you’d think, a seller remarked that I had paid 60% of the sales commission to the Buyer’s Agent. Why hadn’t I taken the lion’s share, or at least split 50\/50? My answer […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29,26,6,5],"tags":[],"class_list":{"0":"post-18328","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":144,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/144\/the-buyer-can-and-should-negotiate-the-buyers-agents-compensation\/","url_meta":{"origin":18328,"position":0},"title":"The buyer can — and should — negotiate the buyer’s agent’s compensation . . .","author":"Greg Swann","date":"July 28, 2006","format":false,"excerpt":"My phone hasn't rung yet, but my ears are already burning. My column in today's Arizona Republic: Buyer should negotiate compensation for agent. (A more-permanent link.) This is Ardell's turf, of course, although my take on The Big Picture is somewhat different. In any case, I expect to have my\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":519,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/519\/the-seller-really-pays-for-the-buyers-agent-definitely-not-when-the-buyer-pays-out-of-pocket-but-what-if-the-buyer-really-did-pay-for-the-buyers-agent-from-the-buyers-side-of-the-hud-1\/","url_meta":{"origin":18328,"position":1},"title":"The seller really pays for the buyer’s agent? Definitely not when the buyer pays out of pocket. But what if the buyer really did pay for the buyer’s agent from the buyer’s side of the HUD-1?","author":"Greg Swann","date":"October 7, 2006","format":false,"excerpt":"There's a lot of discussion of Buyer Broker compensation going on around the RE.net, and I want to draw attention to it while I can. I have some further thoughts of my own, but I'm not sure I'll be able to get to them today. It's Saturday, after all. One\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":236,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/236\/how-to-exterminate-a-cowbird-a-comedy-in-three-acts\/","url_meta":{"origin":18328,"position":2},"title":"How to exterminate a cowbird — a comedy in three acts . . .","author":"Greg Swann","date":"August 23, 2006","format":false,"excerpt":"Act I -- Why Realtors hate discount listings... People think ordinary on-the-ground Realtors hate discount listings because of the discount. That's may be true of many real estate brokers, but real-life Realtors have two much better reasons to hate discount listings. First, the Buyer's Agent will have to do all\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":533,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/533\/for-sale-by-owner-sellers-can-help-move-real-estate-market-into-new-buyers-world\/","url_meta":{"origin":18328,"position":3},"title":"For-sale-by-owner sellers can help move real estate market into new buyers’ world . . .","author":"Greg Swann","date":"October 13, 2006","format":false,"excerpt":"I gripe about the meager little 350 words I get in my column in the West Valley sections of the Arizona Republic. What I want is 1,500 words on page one of the Sunday Buiness section! But today's column (permanent link) is an example of how 350 words can effect\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":613,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/613\/a-horrifying-thought-experiment-elaborating-on-a-brokerage-business-model-that-could-completely-disintermediate-buyers-agents\/","url_meta":{"origin":18328,"position":4},"title":"A horrifying thought experiment: Elaborating on a brokerage business model that could completely disintermediate buyer’s agents . . .","author":"Greg Swann","date":"November 7, 2006","format":false,"excerpt":"I wrote this this morning, and it's been bugging me all day:Here's a thought: The $99 divorce. It only works where the split is unclouded by children or property. But imagine a $999 FSBO package: The usual MLS-only marketing package with a buy-back guarantee for the buyer. Quoting me: \"From\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16310,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16310\/if-the-condominum-is-not-va-approved-how-do-i-get-a-va-home-loan-offer-accepted\/","url_meta":{"origin":18328,"position":5},"title":"If the condominum is not VA-approved, how do I get a VA home loan offer accepted?","author":"Brian Brady","date":"April 4, 2013","format":false,"excerpt":"Many veterans in California purchase properties which are classified as condominiums.\u00a0 Some are large complexes, with professional HOA management, some are small complexes (under 6 units) with no monthly HOA fee and an informal cost-sharing agreement, and some are townhomes.\u00a0 All share on thing in common--they are listed on the\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=18328"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18328\/revisions"}],"predecessor-version":[{"id":18329,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18328\/revisions\/18329"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=18328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=18328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=18328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}