“A new incentive structure”, read the below blog post from one of our customer’s, Mike Heth, creative strategy to get above asking price offers on his listings.
At beycome, we love to empower our customers with our technology and services, helping them make the best deal on the best terms. We discovered that some of our customers use really cool strategies, which benefits every party in the real estate transaction. We asked one customer to share his experience for everyone to learn from!
“If you’re reading this, you’re considering selling your home on your own.
Who wants to pay an agent 3% of YOUR property’s value to list and show it a few times, especially in this market? Not me! Beycome is the obvious solution.
The question is, do you offer a commission to buyers’ agents?
If you don’t, human nature tells us (and I can confirm) that buyers’ agents simply won’t work with you. The fact is most buyers use agents, so how do you entice them to show your home without paying an arm and a leg?
My experience might give you some perspective:
First, I listed my property for $274K utilizing Beycome for just $99. I wanted agents to bring me their buyers, so I offered a $1,000 commission. I received numerous calls from agents asking me if that was a mistake. Some agents gently voiced their exasperation, and others more forcefully. One agent even said, “I refuse to work for $1,000.”
I still received interest, but couldn’t be sure how many offers I was leaving on the table. I decided to revise the commission structure. It remained $1,000 but increased by another $1,000 for every $5,000 over the asking price. Interest immediately spiked. I showed my place 12 times in 3 days and received multiple offers. We are now under contract for $305K!
I will pay the $1,000 base commission, plus $6,000 (since the selling price was $30K over asking), for a total of $7,000.
If I were to simply offer a 3% buyer’s agent commission, I would have paid $9,150. At the asking price, a 3% commission would have been $8,220—still higher than what I paid, and I would have leftover $30K on the table!
As a seller in this hot market, there’s no reason to get agents involved. However, since commissions come out of the seller’s assets, buyers will use them.
If you want to maximize offers and align buyers’ agents’ interests with yours, without paying a set percentage of your home’s entire value, consider a strategy like this.”