Advice needed - can I offer the seller's agent extra commission?

Question

Hi BP community!

We're not working with a buyer's agent and I'm wondering if there is a legit way to make an offer on a property that includes a higher commission for the seller's agent. They just dropped the price on a place we're interested in and want highest and best on Monday, so I'm wondering if anyone has ever seen this work as a way to make an offer stand out, in addition to offering a higher price -  and since there's no buyer's agent to pay, maybe it could work... Or am I crazy??

Thank you!

Michael Kusy · Answer

Don't worry about the listing agent. If you submit an offer directly through them, they're likely going to earn double commission because there isn't another agent in the mix.

I agree with Dwayne, put more into your offer to attract the seller.

Here are my suggestions on things to consider when making a strong offer, which have been working for my clients. The idea is to make the offer as accommodating and favorable to the seller as possible.

1) Start off by offering an initial bid above asking.

2) Next, separately determine what the maximum price is that you would be willing to pay for the property and writing in an escalation clause that says something like, "Buyer will pay $2,000 over the highest and best offer, with a maximum purchase price of $xxx,xxx, with proof of highest and best offer."

3) Think hard about inspections. I can never suggest to my clients to completely waive inspections, unless they are handy or are 100% comfortable with the idea of buying a property 'As Is'. From the seller's perspective, waived inspections significantly reduce the risk of a deal falling apart, which is favorable to the seller.

4) Finally, the last piece of my advice that has really set my clients offers apart from the pack is offering to cover the appraisal gap. I never suggest to my clients to cover the entire gap, but put a ceiling on it, say $5k or $10k, or whatever the appropriate amount is. The appropriate amount will vary by market.

Try to be as creative as possible. You'll never know what accommodations the seller would value that could help you will a deal.

Hope this helps. Let me know if you have any questions.

Good luck!

Matt M. · Answer

That’s not how it works. Any offer accepted will be the decision of the seller. And trying to bribe the listing realtor probably isn’t even legal.

Dwayne Poster · Answer

you are dealing with the wrong entity. Give it to the seller.

Advice needed - can I offer the seller's agent extra commission?

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