Does the Seller Benefit from a Well Represented Buyer? By Jim Palmer Jr.

The current environment in the real estate industry can be fraught with many pitfalls and nuances that sellers and buyers are not prepared to deal with on their own.  That can be a persuasive reason for real estate sellers and buyers to hire a professional broker to help them navigate those treacherous waters.  New agency laws and revised Realtor® business practices have recently shed new light on the options available to consumers.  While those options have always been available, improved business practices of Realtors® add clarity to those choices, especially for sellers.

For example, brokers now make it more clear to sellers that they have the option to pay just the listing brokers compensation, when in the past it was taken for granted that the seller would also pay the buyer’s broker compensation as part of the selling process. Sellers don’t have to agree to pay the compensation for the cooperating broker who represents the buyer, but there are compelling reasons for a seller to consider that option.
The truth is that a seller benefits greatly from a well represented buyer! One way to be assured that a buyer is more likely to close on a transaction is for sellers to incentivize buyers to purchase their property who have secured the services of a professional broker.  When a buyer is represented by a qualified broker, the process is easier and less likely to fail and less likely that liability will linger for the seller once the transaction closes. 

Sellers who choose to do business with unrepresented buyers take significantly more risks.  Has that buyer seen enough of the market to know sellers home is really the home for that buyer?  When difficulties arise in the transaction will that buyer have the emotional vesting to stick it out? Is the buyer even qualified for the purchase?  Can the buyer coordinate the basic requirements of the transaction without the help of a broker?

Who negotiates for the buyer so they believe they got a fair deal?  Does the buyer have the ability to execute the requirements of the contract, such as inspections and contractor bids within specified time frames?  Is the seller more likely to get sued later by a buyer who didn’t really understand their risk or obligations or even the processes of a transaction? 

Sellers do benefit immensely from choosing a well represented buyer.  One way to add assurance to that option is to agree to pay the buyer’s broker compensation when you sign a listing agreement and then advertise that fact.