BOTH Sides Of The Deal!
Some agents obsess about getting 'both' sides of the deal, whereby a buyer comes directly without any representation. Some (a few) agents manipulate things to do this based on greed - and we should call them out on this rotten behavior - but sometimes buyers do indeed come on their own without a buyer agent, empowered ....and often seek some form of discount too....
Personally, I do not love 'direct buyers' as they are often not as informed about market conditions, not educated on the process, and highly suspicious that the listing agent is working exclusively in the best interests of their client (the seller). Navigating this can take tons of extra time, energy, effort, etc. While you may end up getting twice the commission, you often do triple the work. Often, messages from a seller are best filtered through a smart buyer agent who can help explain, strategize, guide, provide precedence, etc.
Boris Fabrikant and Colin Bond of COMPASS New York shared with me how they approach this subject with sellers as it relates to being appropriately compensated for this additional work. Most sellers demand some form of discount in the commission should the buyer not come with representation. In a typical home sale, the commission is split between the listing agent and the buyer’s agent (if the seller is paying all the commissions). Both are doing separate, but equally important, jobs. But when there is no buyer’s agent involved, those responsibilities do not disappear: They simply shift entirely to the listing agent, requiring much, much more buyer-side work and effort, including working directly with the purchaser, their attorney, and, when applicable, their lender, appraiser, inspectors, and other third parties. This requires coordinating with the managing agent (of an HOA where applicable) to facilitate the due diligence process. After a contract is signed, assembling a complete and compliant condo/HOA board application package, which is a highly detailed and time-intensive undertaking, can be an additional responsibility. Throughout the period from offer submission to closing, there are typically numerous questions and issues that require constant communication, follow-up, and problem-solving.
All of this materially increases the time commitment, responsibility, and liability involved in the transaction and pulls focus from other active matters. The seller agent performs the work of both the listing and buyer’s agent, while assuming full responsibility for ensuring a smooth and successful closing. While it may initially appear that receiving the full commission is a windfall, in practice, it reflects the additional scope of work, risk, and accountability required to bring the transaction across the finish line....and yes, that is often TRIPLE the work, not simply double.
BOTH sides are not the "lottery win" many would like you to believe! It requires real, tangible time and work.
Ellen and Janis
