Reply to Sellers, pls stop offering pay buyer's agent commission!

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Reply to "Sellers, pls stop offering pay buyer's agent commission! "

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]What I’ll never understand is any buyer’s agent would be paid on commission.  It takes the same amount of work to help someone by a $500k house vs. one that costs $1.5M or $3M.  Why should the fee be 6 times higher because I’m spending more?  If I cannot find an agent who will accept a flat rate, I won’t use a buyer’s agent in the future.[/quote]

Why is it different for the seller's agent?  Just trying to understand why you think a seller is justified in receiving a higher commission based on sales price, but a buyer's agent is not?

I wonder why commission structures aren't tiered more to reflect a "bonus" for selling above certain amounts, but a much lower commission for just selling for a no brainer price.

[/quote]

A commission incentivises the seller's agent to both achieve a higher price for the seller and maximise their own earnings.  Their interests are aligned in that sense.  A tiered structure is used in some countries to further incentivise the agent (eg 2% if sale price under $1 million but 2.5% if over).  A flat % commission would incentivise a buyer's agent to get their client to push up their price to maximise the agent's earnings plus ensure they get the purchase.  This is a potential conflict of interest?[/quote]

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