Are Buyer Agent Commissions Baked Into Prices?
By Associate Broker Falmouth MA Cape Cod Heath Coker, Heath Coker Berkshire Hathaway HS Robert Paul Prop
(https://teamcoker.robertpaul.com)
Are Buyer Agent Commissions Baked Into Prices?A common claim in real estate is that buyer agent commissions are already “baked into” home prices. For Florida buyers and sellers, this idea deserves a closer look. Research shows the answer is not simple.When a seller sells a home, offers come in with a contingency that the seller pay X% toward the buyer agent commission. The seller can negotiate the buyer agent commission down and the buyer could raise their offer to help cover it. The price adjusted, yet the commission still deducted from the seller's proceeds. This real-world exchange cause buyers and sellers to question the baked-in idea.Studies offer mixed findings. The American Economic Review examined agent incentives and found they can affect transaction outcomes, yet the link to h...
Comments
0