Home Buyer Beware (BAC) - Utah County Real Estate

Home Buyer Beware (BAC)

One of the most often used marketing tricks that Listing agents use to attract home buyers is a Buyer Agent Commission (BAC) that is larger than what is generally offered. Generally speaking most home sellers offer a commission of 6 percent to the agents that assist to sell their homes. Half of the commission or 3 percent goes to the agent that listed the home for sale. The other 3 percent goes to the agent who represents the buyer in the transaction. By offering an inflated BAC, the listing agent is hoping that the agent representing the buyer will show their home before the home that only has a 3 percent commission.

Home Buyers Beware

Home buyers need to understand that sometimes their agent may be motivated to show them a home with a larger BAC, only because of the larger commission they would be getting once the property sells. Make sure that your home buyer agent knows that you understand the commission process. Ultimately the sale price would be higher due to the inflated BAC. Most agents are very ethical and are able to stay objective when being offered a larger commission.

The best way to avoid any problems is full disclosure. During the showing process Realtors should keep their clients informed of what the BAC is for each property. Recently, while working with a buyer client of mine, we came down to making an offer on two properties that were equally attractive to my buyers. Due to the fact that I had fully disclosed each property, my client turned to me and said, "Let's make an offer on the property with the larger commission." I felt pretty good; I knew that by keeping my clients interest first and foremost in my mind, I was able to gain his complete confidence and trust and he rewarded me after the fact.

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