Masiello Real Estate
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Buyer Agent Fees How do I get paid, you ask?
IT’S A PERCENTAGES GAME
Most agents get paid a percentage of the SOLD PRICE. On a $300,000 home, let’s say the real estate fee included in the price is 6%, that’s $18,000.
That gets split 4 ways: the listing agency and the listing agent, and The Masiello Group and me.
So, do we scratch and claw to get the highest price as possible? You bet! But let’s think about that; it’s a good thing if you are the seller, but when you
are the buyer, do you really want your agent getting a percentage of the sales price? What incentive does an agent have to get that price lower? That
means you could be paying too much for the house. Is that what you want? Didn’t think so.
There is no regular paycheck for agents, no draw, no stipend – it’s strictly commission baby. If we don’t sell, we don’t eat. So one way to think about
it is you want a well-fed agent. Ok, jokes aside, you want someone on your side who has made this a career. Someone who believes in her ability to
close enough business, who is not living paycheck to paycheck and has to force deals together solely for her own good. You want a representative on
your side. Someone who is worth the fee that you pay.
Agents have business expenses whether we sell a home or not. We still have to pay our mortgage, desk fees, advertising, computers and Realtor dues.
Nobody cares if we’re in a slump, or all of our deals just fell apart, or a lawyer found a problem with the title the day before the closing. We gotta pay
the bills, just like you. So we take an enormous risk to make sure you get the house you want and all the details are cleared up by closing.
Many other people are involved in the sale and what they do or don’t do affects your purchase. There may be a retainer fee to cover some of the
“concierge” expenses, like gasoline and car expenses, and to maintain documentation for Real Estate State and Federal Agencies about lead paint, or
properly completed disclosures to avoid fines and keep us all out of court. We usually do not get our full fee until closing.
That gets split 4 ways: the listing agency and the listing agent, and The Masiello Group and me.
So, do we scratch and claw to get the highest price as possible? You bet! But let’s think about that; it’s a good thing if you are the seller, but when you
are the buyer, do you really want your agent getting a percentage of the sales price? What incentive does an agent have to get that price lower? That
means you could be paying too much for the house. Is that what you want? Didn’t think so.
There is no regular paycheck for agents, no draw, no stipend – it’s strictly commission baby. If we don’t sell, we don’t eat. So one way to think about
it is you want a well-fed agent. Ok, jokes aside, you want someone on your side who has made this a career. Someone who believes in her ability to
close enough business, who is not living paycheck to paycheck and has to force deals together solely for her own good. You want a representative on
your side. Someone who is worth the fee that you pay.
Agents have business expenses whether we sell a home or not. We still have to pay our mortgage, desk fees, advertising, computers and Realtor dues.
Nobody cares if we’re in a slump, or all of our deals just fell apart, or a lawyer found a problem with the title the day before the closing. We gotta pay
the bills, just like you. So we take an enormous risk to make sure you get the house you want and all the details are cleared up by closing.
Many other people are involved in the sale and what they do or don’t do affects your purchase. There may be a retainer fee to cover some of the
“concierge” expenses, like gasoline and car expenses, and to maintain documentation for Real Estate State and Federal Agencies about lead paint, or
properly completed disclosures to avoid fines and keep us all out of court. We usually do not get our full fee until closing.
I GET PAID TO FIND YOU A HOME
When you work with me, there are several ways you can pay me.
► One is a retainer fee up front, and the rest to be paid at closing. You could write a separate check before the closing, but I think it’s better for you
if we have the fee added to the Closing Documents so it’s easier to track, in case you can deduct moving expenses. Heck, I could give you a bigger
break if you paid me my ENTIRE fee right now! (OK, I tried.)
► You could ask the Sellers to pay. They already have typically offered a “co-broke” fee, but over the last few years, the listing agent has taken
most of it. I have learned several ways over my years of experience to get extra money from the sellers without the listing agent getting any part of it,
saving you thousands.
► Third is with a flat fee and a Buyer Agent Bonus paid for every dollar I save you. Not a percentage of every dollar the house costs. I get for
getting you the lowest price possible. That includes a bonus on any discounts or closing costs we get the seller to pay on your behalf. And you will still
end up paying less.
► One is a retainer fee up front, and the rest to be paid at closing. You could write a separate check before the closing, but I think it’s better for you
if we have the fee added to the Closing Documents so it’s easier to track, in case you can deduct moving expenses. Heck, I could give you a bigger
break if you paid me my ENTIRE fee right now! (OK, I tried.)
► You could ask the Sellers to pay. They already have typically offered a “co-broke” fee, but over the last few years, the listing agent has taken
most of it. I have learned several ways over my years of experience to get extra money from the sellers without the listing agent getting any part of it,
saving you thousands.
► Third is with a flat fee and a Buyer Agent Bonus paid for every dollar I save you. Not a percentage of every dollar the house costs. I get for
getting you the lowest price possible. That includes a bonus on any discounts or closing costs we get the seller to pay on your behalf. And you will still
end up paying less.
YOU PAY LESS! That’s the biggest reason you should hire me. A story about a house in Newmarket, goes like this. There was a perfect house for my
Buyer Clients. It was listed for $319,900. It had been on the market for a year, starting at $389,900. I figured the seller was getting desperate to sell, since
I did research and found out he didn’t live there. We went back and forth several times before settling on $310,000 as a price. After the home inspection,
some work had to be done, so I got them a little more money off.
At $310,000 I got my Clients a big discount, about 3% off list price, and they saved almost $10,000! In a real estate transaction where the buyers had
someone on their side watching out for every dollar, the Buyers said it was worth it. Based on MLS statistics, in that neighborhood, other buyers only got a
1.7% discount. On a $319,900 house, that means the buyers paid about $314,500, saving only $5400!
The sweetest part? The appraisal came in at $322,000, that’s $12,000 in built-in equity the buyers had the day they closed. Even with the Bonus they paid
me, my Buyers made out on this deal like crazy! Did I do good or what?
Please feel free to call me to discuss this or any other part of the real estate transaction. I will provide as much information as you want, and
can go over your questions till you are satisfied. Call me at 603-957-3414 or email me right now at muffie@masiello.com
Buyer Clients. It was listed for $319,900. It had been on the market for a year, starting at $389,900. I figured the seller was getting desperate to sell, since
I did research and found out he didn’t live there. We went back and forth several times before settling on $310,000 as a price. After the home inspection,
some work had to be done, so I got them a little more money off.
At $310,000 I got my Clients a big discount, about 3% off list price, and they saved almost $10,000! In a real estate transaction where the buyers had
someone on their side watching out for every dollar, the Buyers said it was worth it. Based on MLS statistics, in that neighborhood, other buyers only got a
1.7% discount. On a $319,900 house, that means the buyers paid about $314,500, saving only $5400!
The sweetest part? The appraisal came in at $322,000, that’s $12,000 in built-in equity the buyers had the day they closed. Even with the Bonus they paid
me, my Buyers made out on this deal like crazy! Did I do good or what?
Please feel free to call me to discuss this or any other part of the real estate transaction. I will provide as much information as you want, and
can go over your questions till you are satisfied. Call me at 603-957-3414 or email me right now at muffie@masiello.com