Buyers premium

exiled_red

I am looking to sell our property and the estate agent we are wanting to list with has offered a couple of options, the first being for us to pay a 1% commision based on the sale price, the alternative being a 0% but to charge the buyer a 1.5% "Buyer's premium" They claim that the latter is what they would advise and has proved a very successful and popular way of doing business in the current market.

Obviously as a seller 0% is quite appealing but I worry that the Buyers premium is not a common thing and may put off potential buyers. I wondered if anyone had any experience of this type of deal or thoughts about it.

davidmcn

exiled_red wrote: »

I am looking to sell our property and the estate agent we are wanting to list with has offered a couple of options, the first being for us to pay a 1% commision based on the sale price, the alternative being a 0% but to charge the buyer a 1.5% "Buyer's premium" They claim that the latter is what they would advise and has proved a very successful and popular way of doing business in the current market.

What, they're recommending the method which gives them a 50% uplift in their fee? You don't say... :rotfl:

I would run a mile from any property which suggested I pay the agent's fees, especially if it was at a stupidly inflated rate.

jayII

This place was roughly 300k. Would we have paid another 4.5k for the privilege of buying it?

Nope, we'd have expected the seller to drop the price by that amount--their sale, their fees!

Not to mention people who are selling their house and buying yours--they'd potentially be paying two fees?!!

Cakeguts

If you want to sell this house I would suggest that you sell it the normal way where you pay the commission.

michelle09

As a buyer - I wouldn't agree to paying the seller's EA fees. EAs work for the seller, so the seller can pay for them!

exiled_red

Thanks everyone, you are all backing up my thoughts, it seems that the agent would be the winner (getting an extra fee) at my expense as the money presumably comes out of what they would be willing to pay for the property.

DaftyDuck

Find another agent.

always_sunny

As a buyer I would walk away or reduce my offer dramatically.

Davesnave

I associate the words "buyer's premium" with 'The Modern Auction Method' and similar dubious practices. It wouldn't help, but nor would put me off, because it's business, and I'd not take offence if it cost a house I wanted.

Others might think differently.

However, as someone else said, the agent is working for the seller, not me, so it's a fake tax on buying. I'd just reduce the amount I'd offer accordingly.

Mickygg

The buyers premium wouldnt bother me. I'd simply work out what I want to offer on the property and then deduct the EA fee. So in effect you would either reject my offer or suck up the 1.5% fee.
Unless you have a house that people will be rushing to buy I also wouldn't do this, why put people off, in this market its a weird one to suggest.

k3lvc

In addition presumably the 1.5% would need to be cash i.e. unmortgageable ?

As with others I'd be walking from any estate agent who suggested I as the buyer paid to buy