On a For Sale By Owner Home
If the seller of the home is not using an agent, but is willing to pay a buyer’s agent commission, they often increase the list price of the home to cover the commission cost, so if you come without an agent, you can negotiate a lower price on the home. In some cases, the seller is not willing to pay a 3% commission to a buyer’s agents, in which case the buyer would be responsible for paying their own agent.
On an Agent Listed Home
If the seller of the home is using a real estate agent, the seller typically agrees to pay a commission equivalent to up to 6% of the final sale price of the home. That commission is typically split between the listing agent and the buyer’s agent, with each being paid 3%. Because Homie doesn’t charge commissions, your offer will be very attractive to the sales agent if they decide to keep all 6% for themselves. The more likely scenario is that the seller’s agent will keep 3% and not charge the owner the other 3% of the commission, thus making your offer more attractive since the homeowner is saving the extra 3%. In this scenario, the sales agent makes the same amount of money they would have made had you brought an agent. It’s a win for all involved.