Brokers Cutting Out Buyer Agents
In a hard-nosed approach, discount brokers tout savings by cutting out buyer agents.
(Boonton, NJ, December 1, 2016) — Amid a renewed focus on discounted commissions, a new breed of brokers is offering a sharp-elbowed way for sellers to save money.
The strategy: Cut buyers’ agents — and their 3 percent commissions — out of deals.
The December issue of industry newsletter, Real Estate Broker’s Insider, profiles two brokers who are touting savings by cutting out buyer agents.
It’s an approach championed by Added Equity Real Estate of Seattle. "I don’t think sellers need to pay buyer agents any more," says founder Craig Blackmon.
The company’s pitch is that it will charge sellers 2 percent to market a home, with a token commission of just $500 to the buyer’s agent. Blackmon says that sum triggers an agent’s legal duty to show the home to an interested client.
In another unconventional move, Blackmon argues that the MLS is no longer a requirement for marketing homes.
"It’s basic economics: You don’t have to reach every buyer to get fair market value, just a sufficiently large enough pool of buyers," he says.
Blackmon says his listings can receive a large number of buyers through Zillow, Trulia, and Yahoo homes.
"My model wouldn’t be possible without Zillow," he says.
Details on Added Equity and additional business models appear in the December issue of Real Estate Broker’s Insider newsletter.
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