If you’re eyeing a bank-owned property in Charlotte, there’s new information you need to be aware of and it could affect how much you pay at closing.
Banks Aren’t Covering Buyer Agent Commissions Anymore:
Traditionally, when you bought a home, the seller (or in this case, the bank) would cover the commission for your buyer’s agent. But now, many bank-owned properties no longer offer buyer agent compensation. That means you could be on the hook to pay your agent directly unless your agent knows how to negotiate smartly.
Why Negotiation Matters More Than Ever:
When banks review offers, they’re focused on one thing: net proceeds. If two offers are identical, but one includes a 3% buyer agent commission and the other only 2%, the bank is likely to go with the lower commission offer because it nets them more money.
This is why it’s crucial to work with an agent who understands how to build the commission into the offer strategically. A well-crafted offer can still get your agent paid without reducing your competitiveness.
What Happens If Your Agent Doesn’t Negotiate?
If your agent doesn’t know how to handle this (or doesn’t even try) you might end up paying their commission out of pocket. And depending on the price of the home, that could mean $10,000 to $15,000 or more added to your closing costs.