Buyer Agent Representation

Buyer Broker Compensation

Finding and purchasing a home is a detailed process that demands time and dedication. Our team at Tennessee Home Finders are passionate about our work because it leads to the ultimate reward – handing you the keys to your dream home.

We are happy to talk through the several types of buyer representation we offer so we can find the one that works best for you.

Recent Changes in the Industry

In 2023, the traditional structure of buyer broker compensation was called into question. Several large brokerage houses, including AnyWhere, made the news with costly and highly publicized settlements. What does this mean for you? Why are we recommending an exclusive buyer representation agreement regarding the buyer broker's commission?

Exclusive Buyer Representation

Exclusive Buyer Representation is our preferred method of representing you. With an exclusive commitment, a Tennessee Home Finders agent can dedicate substantial time and energy to helping you find and purchase a home. You become the highest priority.

But understand that our agents are willing to be retained to represent you on a non-exclusive basis.

Either way you retain a Tennessee Home Finders agent, we do need to discuss how we will be paid for our services.

First, the brokerage itself and your agent personally are paid on a commission basis. That means that your agent only gets paid if they help you find a home you want to purchase, and the purchase happens. Unless and until that happens, no payment is due.

Even though we may not be paid, we will do a substantial amount of work trying to make your home buying process a success. That starts with looking at properties to find one that is right for you.

Your Tennessee Home Finders agent will search listings and preview homes on their own to make sure they help you find that home. Beyond that, they will explain the home buying process, help you develop your goals, set expectations, arrange a pre-approval with a lender, negotiate the purchase price, coordinate inspections, help coordinate title insurance and other closing services, and manage a myriad of other details needed to close the home efficiently and seamlessly.

All of those are outlined in our buyer agency brochure.

Payment For Services

There are several ways in which your Tennessee Home Finders agent can be paid for their services.

These include:

• The seller of the property you are interested in has offered to pay a commission to the buyer’s broker, which is typically disclosed in the MLS as part of the listing

• The seller has not offered to pay a commission to the buyer’s broker, but we include that requirement as part of the offer you make on the property

• The seller will not agree to pay a buyer’s broker commission, in which case you would be responsible for paying us.

Please note that our payment amount is not set by law and is fully negotiable. The payment terms are in the buyer representation agreement that you would sign when your Tennessee Home Finders agent is retained.

As your broker, we can help you to make informed and educated decisions. For example, we will prepare a comparative market analysis to help you assess the market value of any particular property in which you are interested. That market analysis will also help us negotiate the purchase price and terms most favorable to you.

As your broker we can recommend other professionals you may need for the home purchase such as home inspectors, lenders, attorneys, insurance providers, movers, painters, and other local support.

Buyer Q&A

Q: Is it required for a seller to offer a commission to a buyer's broker?

A: It is common, but not required. Many sellers recognize the value of offering a commission to buyers' brokers and include the commission in the MLS listing.

Sellers know that buyers benefit from having their broker commission paid by the sellers out of the sale.

Sellers also often see the value in having a buyer be represented because the transaction is likely to go more smoothly and close on time.

You should understand that while the seller may be paying the commission, our duties as your agent run strictly to you. The seller’s payment allows you to use your cash for a larger down payment or other purposes, because most buyers are not able to finance the brokerage commission as part of their mortgage.

Q: If the seller of a property that I identified for you is not offering a commission to the buyer's broker, then what happens?

A: In that event, and because we have signed a buyer's representation agreement, there are a few options:

1. You can make a purchase offer subject to the seller agreeing to pay the buyer's broker's commission.

2. You can negotiate a hybrid where the seller may pay part of the buyer's broker's commission, with you paying the balance.

3. You as the buyer would pay the full commission.