One of the more powerful but underused tools in a realtor’s toolbox is the Single Party Compensation Agreement.
Finding a non-listed property for your buyer, and convincing the homeowner to sell to your client, is a dream for buyers’ agents. More and more agents are using ReboGateway as a tool to do just this, to find unlisted properties that meet a buyer’s desires and have a higher likelihood of selling than other nearby properties because of some life event. But what many agents still don’t realize is that double-ending the deal is not the only way to be compensated for their efforts to match buyer and seller.
In this week’s Mentor Mondays, Jeff Petsche goes into detail about the Single Party Compensation Agreement, an agreement with a seller to compensate the agent if a particular buyer ends up buying the property. Besides talking about the advantages and pitfalls of this type of agreement, Jeff also discusses how to use the idea to start a conversation with a potential seller, and how to use it in conjunction with expired listings (an approach which might also work for FSBOs). The best part is that, since this agreement is specific to an individual buyer and seller, if a deal results from it, the process is far simpler than had you approached the homeowner with a proposal to list the property.
Please tell us about your experiences with Single Party Compensation Agreements in the comment section below. We’d love to hear how this underused tool has helped you succeed!