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[quote=Anonymous][quote=Anonymous][quote=Anonymous]For those saying the seller has all the power, and the buyer shouldn't get anything out of this...  Even financially, this is not completely accurate.  Suppose seller thinks they can get $1.4M on the open market.  Assuming buyer seller agents take 5% ($70K), that nets seller $1.33.  Seller and buyer can split the difference and transact at $1.365M for a win-win.

And that's before you factor in any value the seller gets out of doing a quick off-market transaction.  So while seller should drive what they expect to get on the open market, the win-win transaction is splitting the foregone agent fees.[/quote]

Maybe in a cold or neutral market this makes sense. In a hot (seller’s) market, no. The benefit the buyer gets is knowing they won’t have to outbid anyone else. That’s worth a lot in the current environment. Seller pockets most or all of the (saved) commission. If the buyer doesn’t like it, they can take the chance that they’ll have to pay more in a bidding war and that they might not get the house — which I believe is in the neighborhood that they are already renting in, right?[/quote]

This.[/quote]

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