WHY OFFERS OF COMPENSATION FOR BUYERS AGENTS ARE GOOD FOR SELLERS

Whether to offer compensation to a buyer’s broker, and the amount of compensation you may decide to offer, is purely your
choice. You are not required by law to offer such compensation, and all compensation is fully negotiable. However, so that you
can make an informed decision, and to help you understand why we recommend that you make such an offer, we wanted to
share why we believe there are significant benefits to doing so.

Stated simply, the most significant benefit of offering compensation to a buyer’s broker is to help make your property attractive
to the widest possible pool of potential buyers. We believe there likely will be a reduced number of potential buyers who are
interested in looking at a property that does not offer buyer agent compensation for several reasons.

First, some buyers may not have the cash to pay their own real estate agent out of pocket. Often buyers need their cash for the
down payment and other expenses. Generally, buyers cannot finance a brokerage commission through a mortgage. So, buyers
without the necessary cash will not have the option of borrowing the money to pay for their own agent. Those buyers may be
unwilling to consider your property if it’s important for them to have an agent representing them.

Second, in our experience, the seller benefits from the buyer having an agent because the sales and closing process goes
much better. Without an agent representing the buyer, the buyer may not be able to navigate the complexities of making an
offer, negotiating the sales price and other terms, understanding how to address issues that may arise in a home inspection,
obtaining financing, paying real estate transfer taxes (in those states where it is split between seller and buyer), and so on. As a
result, the closing process can take longer, and other complications can arise that are less likely to occur if the buyer is
represented by a professional real estate agent. Delays in the process can cost you in several ways– greater carrying costs,
disruption of the process if you need the closing funds for a new home you are purchasing, or delays or losses incurred if a
home needs to be relisted.

My recommendation is that it is a smart financial decision to make your property attractive to the largest number of potential
buyers possible. Experience has shown that this is a good way to create demand, and potentially competitive bidding for your
home– with the goal of generating the highest demand, fastest sale, and potentially the best price for your home.

WILL OFFERING COMPENSATION TO BUYERS AGENTS MAKE MY HOME MORE ATTRACTIVE TO BUYERS?
We think so. Buyers often have significant costs they must pay during the home buying process, such as homeowner’s
insurance, pro-rated property taxes, movers, contractors, down payment, costs charged by lenders and title companies, home
inspection and appraisal costs, and attorney’s fees. Your home will be competing against some (likely many) homes that will
pay the buyer broker’s compensation, which could make those houses more attractive to a buyer because it will mean less
money out-of-pocket for the buyer at closing. Consider how much longer it might take to find a qualified buyer or how much
less you might get in the sale of your home if buyers found it less attractive.

BUYERS AGENTS OFFER A MORE PROFESSIONAL TRANSACTION EXPERIENCE FOR ALL
Another significant benefit of offering compensation to the buyer’s agent is that it generally increases the chances that the
buyer is represented by a licensed professional who will manage their side of the transaction. Explaining the home buying
process, setting expectations, arranging a pre-approval with a lender, showing homes, negotiating on the purchase,
coordinating inspections, helping to coordinate title insurance, and closing services, and managing the myriad of details needed
to close a home efficiently and seamlessly. An unrepresented buyer may not be able to work through these issues.
So, you get a signed purchase agreement…great. Then something happens that the buyer is not prepared to deal with. The
sale either falls through or takes much longer to close. Our goal is to make sure that your transaction goes from contract to
close and manage the process throughout. A buyer’s agent also facilitates completion of the transaction because they are there
to advise the buyer how to work through these issues.

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