A large percentage of purchases are often made with a downpayment of 10% or less, meaning that most of those buyers may not have been able to afford to pay their own buyer’s agent’s commission (which can range up to another 3% or more of the purchase price in addition to the downpayment), if it was not paid for them by the property’s seller through the commission which the seller pays to their listing broker to share with the buyer’s broker or directly to the buyer’s broker, in order to absorb that extra expense for the buyer. This additional fee can keep many buyers out of the purchasing market altogether and reduce the number of buyers that may have otherwise been able to afford to purchase your property. As a seller, when you offer to pay the buyer’s agent’s commission (either through your listing agent or directly), you are in a stronger negotiating position to not reduce the price of your property as much, since you are helping that buyer by paying that additional fee for them. By not paying the buyer’s agent’s commission as a seller, you reduce the exposure of your property to a smaller number of buyers that would have otherwise been qualified to afford the down payment to purchase your home, because upfront money is often more difficult for many buyers to afford than gradual monthly payments are, if the buyer borrows a little more as the result of the seller not lowering their price as much as they would have if the buyer paid their own buyer broker commission. That’s why smarter sellers still do pay the buyer’s agent’s commission out of their sale proceeds (rather than lowering their property prices by the same amount or more), and thereby those sellers broaden the pool of potential buyers for their properties by making their houses more affordable in relation to how much money a buyer needs upfront to purchase their house.
And when buyers work with Wealth Share Realty, they are uniquely able to afford to pay even higher purchase prices than buyers that work with other real estate agencies, since we at Wealth Share Realty share the commissions we receive from those smarter sellers with our buyer clients.