Through the traditional Multi Listing Service (MLS) system, buyers’ agents and sellers’ agents are both paid commissions by the home sellers. This arrangement will sometimes benefit the agent over your best interest. For example, through the MLS system, to generate more interest in a property, rather than lower the price of the home, a seller may add a bonus on top of the commission to induce buyer agents—to try harder—to “sell” the listing to their buyer clients. Also, the higher the price paid for a home, the more an agent is compensated, which is an inherent conflict of interest with buyer representation.
At Fifth Broker, we align the incentives between buyers and their agents by providing a performance bonus to our agents based on how much you save relative to the original asking price of the home. Unlike other brokerages that use percentages to compute their fees, our commissions are not guaranteed to increase as the price of the home increases.