Exclusive Buyer Agency Agreement Commission: What You Need to Know
If you`re in the market for a new home, you may have heard the term “exclusive buyer agency agreement commission” (also known as EBA commission) thrown around. But what exactly is an EBA commission, and how does it affect you as a homebuyer? In this article, we`ll answer these questions and more.
What is an exclusive buyer agency agreement?
An exclusive buyer agency agreement is a contract that you sign with a real estate agent or agency that states that they will exclusively represent you as the buyer in any real estate transactions. This means that they will act in your best interest and help you find the perfect home at the best price. As part of this agreement, you will agree to work exclusively with this agent or agency for a certain period of time (usually 3-6 months).
What is an EBA commission?
An EBA commission is the commission that the buyer`s agent or agency receives when you purchase a home through them. In most cases, real estate commissions are paid by the seller of the home, who typically pays a commission of around 6% of the sale price to the listing agent (the agent who represents the seller). This commission is then split between the listing agent and the buyer`s agent (your agent).
However, in some cases, the buyer`s agent may negotiate an EBA commission with you as part of the exclusive buyer agency agreement. This means that the commission will not be split with the listing agent and will instead be paid solely to your agent.
Why would you agree to an EBA commission?
There are a few reasons why you might consider agreeing to an EBA commission with your agent:
1. It may incentivize your agent to work harder for you: If your agent knows that they will receive a higher commission by working with you exclusively, they may be more motivated to find you the perfect home at the best price.
2. It may reduce the potential for conflicts of interest: If your agent is not splitting the commission with the listing agent, they may be less likely to push you towards a property that benefits the listing agent more than you.
3. It may give you more negotiating power: If your agent is not splitting the commission with the listing agent, they may be more willing to negotiate on their commission if it means getting you the best deal.
However, it`s important to note that not all agents will agree to an EBA commission, and it may limit your options for finding the right agent for you. It`s also important to carefully read and understand any agreements before signing them, including any agreements related to commissions.
In conclusion, an exclusive buyer agency agreement commission is a commission that is paid solely to the buyer`s agent in a real estate transaction. It may offer some benefits to the homebuyer, such as incentivizing the agent to work harder for them or reducing potential conflicts of interest. However, it`s important to carefully consider all options and understand any agreements before signing them.