Kelly Clauss, Arizona's Top RealtorThe real estate market is quite technical, so many home buyers and sellers in Arizona prefer to employ the services of realtors consisting of buyers’ and sellers’ brokers. According to the National Association of Realtors, 86% of home sellers used the service of a real estate agent to get their homes, and 86% of buyers purchased their homes through a real estate agent or broker.
This puts realtors on a tight schedule toward meeting their client’s homebuying needs. Buyer brokers endure rigorous stress to ensure their clients get the best houses. They guide home buyers in getting the best properties, negotiating fair prices, and ensuring that the buyer has a hitch-free homebuying experience to ensure customer satisfaction.
Despite all these, buyers’ brokers often get less than a 3% broker rate, which doesn’t do well to compensate for their efforts. Although location determines the agent commission, in 2020, the Buyer Agent commission was estimated at around 2.32% to 2.5% of the home buying value.
In 2021, the real estate commission for the buyer and seller was estimated at approximately 5.43. This insinuates a less than 3% commission for both agents. In 2022, the estimated commission for the buyer’s agent was 2.75%.
Despite all these fluctuations, a slight increase in the buyer broker’s commission to 3% will motivate them to do a better job for the home buyers, which they will enjoy for a long while.
The payment of a 6% rate to these agents, which allocates 3% to the buyer broker, is a long-standing industrial standard that has recently been watered down by budget-conscious home sellers and buyers. We can return to the good old days and offer a full 3% to our buyer brokers.
Why Should Buyer Brokers Be Offered A 3% Commission Instead of Less Than 3%?
i. Offering a 3% buyer broker commission is a good incentive to open up your houses on the market to more potential buyers willing and ready to pay for the house. In addition, raising their commission back to 3% will help sellers clear their homes off the market faster than usual.
ii. The offering of a lower buyer broker rate discourages buyer brokers from positioning your listed house within the view of competent buyers.
How to Identify Bad Buyer Brokers
The following are the signs to watch out for to identify a bad broker:
i. Ineffective Communication: Communication is the spice of life, and in the real estate world, where the buyer broker is the fore eyes of the buyer, communication is essential. Conversely, ineffective communication is one of the significant indications of a bad buyer broker.
ii. They Are Impulsive and Adamant: Bad buyer brokers are impulsive and adamant. One major quality of a good buyer broker is prioritizing the buyers’ desires and giving advice that will complement the buyer’s interest. Unfortunately, bad buyer brokers believe they are the best at their job and thus discard the buyer’s opinion about the kind of house they desire.
iii. Inability to Keep to Time: No red flag is more significant than an agent that keeps the buyer waiting. Bad buyer brokers do not keep to appointments or don’t even show up at all because they view themselves as the alpha and the omega.
iv. Untruthful: The basis of a faulty relationship, whether formal or informal, is lies and deceit, which is the trademark of bad buyer brokers. Once a buyer broker changes his statements over and over to cover up, you should avoid such an agent.
Despite the vast importance of a buyer broker, many buyers fall into the trap of bad buyers’ brokers, costing them the opportunity of getting the best homebuying deals.
But this is where Kelly Clauss comes in. Kelly has actively served homebuyers and sellers in Arizona for over 17 years, especially in the east valley. She explores her wealth of experience to ensure you get the best deals. Are you looking to sell or buy a home in or around Chandler, Tempe, Gilbert, Paradise Valley, or Scottsdale? Then you should consider giving Kelly a call or reaching her through her mail at email@example.com.
Contact Person: Kelly Clauss
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