Homebuyers sometimes believe that since sellers pay the commission in most real estate transactions, their agents are really working for them for free.
But is that the case?
Agents and consumers often tap-dance around the topic of how much a buyer's agent makes (or nets, for that matter). Often, the commission - or any bonuses offered - are a bit of a secret. In many real estate purchase contracts, the amount the brokerage and agent make are omitted.
ACREs believe in providing transparency, though, whether they are working under a traditional model of compensation or not.
In my work, I always tell my buyers what the compensation offered to me is. Why would I do that? First, because it's built into the price of the home they're purchasing, so in a sense, they are paying for it. Second, because I do have a minimum amount for which I'll work. If the commission rate falls below that number, I'll still help my clients to purchase the home, but only if they want to help bring the commission up to the minimum number. Luckily, for every 100 homes I show, usually 99 or more of them will meet that standard.
One of the major plusses of working with an ACRE, then, is the transparency. There's no smoke and mirrors here - you will know what's going on, and you'll have choices.
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Couldn't have said it better Mary. Thanks for your thoughts.