Posted by eric the wunderwurm on March 13, 2004 at 16:31:48:
no prob.
In addition, this can be a point of negotiation in your favor. If Mr. Smith was going to protect an agent, but you buy from him w/o using an agent, then you could maybe get the seller to (a) lower the selling price by whatever commission he would have paid, or (b) pay you the commission or part of it as a bonus for closing quickly, etc.
Brokers Protected? - Posted by Jeremy Woodruff
Posted by Jeremy Woodruff on March 13, 2004 at 09:42:41:
In the Real Estate section of the newspaper on a lot of FSBO adds I’m seeing “Brokers Protected” on there. What does that mean? Thanks!
Re: Brokers Protected? - Posted by eric the wunderwurm
Posted by eric the wunderwurm on March 13, 2004 at 13:24:54:
It means the seller (even though he is not represented by a selling broker) agrees to pay the commission of a buying broker (usually 3-3.5%).
Why say this? Because if I’m Joe Agent with Joe’s Realty, and I am looking for a house for a client of mine, I am only going to show my client houses that I’ll get paid a comm. on. I may drive by 5 FSBO’s on my way to the office, but the only one I’ll (probably) show to a client will be the one that promises to protect my interest by paying my commission.
The benefit for the seller is: they pay a 3.5% commission to the buyer agent, but don’t have to pay an additional 3.5% to a sellers agent, so they save about 1/2 the usual cost of a RE commission.
Make sense?
Eric
Re: Brokers Protected? - Posted by Jeremy
Posted by Jeremy on March 13, 2004 at 15:16:27:
Thanks Eric! That really helped!