In today’s evolving real estate market, sellers face a crucial decision: Should they offer compensation to the buyer’s agent? In my opinion, yes—and here’s why it’s more important than ever, especially in the Adirondacks.
Local Knowledge Sells
In an area where many buyers are seeking a second home, a buyer’s agent with local knowledge is crucial. Buyers seeking an Adirondack vacation home often explore a large area (they are not confined by school districts or work commutes). They might not be familiar with your Adirondack community, but their agent should be. A buyer’s agent can highlight local amenities, such as scenic hiking trails, snowmobile trails, lake access for boating and fishing, nearby state parks, and charming businesses, giving buyers a true sense of the neighborhood lifestyle before they even step inside the home. That added context can make a big difference in the buyer’s enthusiasm for the property.
Buyer’s Agents Help Buyers See Potential
A skilled buyer’s agent does more than show homes—they help clients envision what a property could become. Experienced agents have seen it all, gathering valuable insights that can help buyers see a home’s potential. In the Adirondack real estate market, where inventory can be limited, finding the right fit often requires a creative approach. An innovative agent can help buyers see potential in homes with “good bones,” suggesting ways to adapt spaces to meet specific needs. This might include identifying a suitable spot to add a bathroom, repurposing a room as a home office, or investigating the feasibility of adding a garage based on local codes and setbacks. By sharing their expertise, agents turn possibilities into opportunities.
Most Offers Still Include Compensation
Most real estate purchase offers still account for buyer agent compensation. Sellers who plan for this by incorporating it into their asking price help streamline negotiations and make their property more attractive from the outset.
The Buyer Brings the Funds to the Table
When buyers include agent compensation in their purchase offer, it often becomes part of their financing. This means it can spread out over the life of their mortgage, rather than being paid upfront, making homeownership more accessible and attractive.
Homes Without an Offer of Compensation Have Fewer Showings
Many buyers instruct their agents to only schedule showings for homes that offer agent compensation. Buyer’s agents are legally and ethically bound to follow those instructions, so not offering compensation could significantly reduce showings.
Don’t Miss Out in a Hesitant Market
In a market where buyers may be hesitant due to interest rates or economic uncertainty, missing out on a qualified buyer over a lack of agent compensation can be a costly mistake. Offering compensation broadens your home’s reach and makes negotiations more approachable for buyers.
Final Thoughts
Offering buyer agent compensation is not just a tradition; it’s a powerful strategy. It portrays you as a welcoming and supportive seller, strengthening your negotiating power while helping buyers feel acknowledged and valued. In a competitive market, that edge could be the difference between a quick sale and a missed opportunity.