When you’re in a multiple offer situation as a seller, having a buyer’s broker who demands seller concessions for commissions can pose several disadvantages:
- Reduced Net Profit: Seller concessions involve the seller covering part of the buyer’s closing costs or other expenses. In a competitive market, this can reduce the seller’s net profit from the sale, as they have to cover additional expenses.
- Less Appealing Offer: Requesting seller concessions might make the buyer’s offer less appealing to the seller. Sellers generally prefer offers that require fewer concessions, as they result in a higher net profit and less financial burden on their end.
- Risk of Offer Weakening: If the seller is not willing to provide concessions, the buyer’s offer may be weakened, especially if there are other offers on the table that don’t require concessions. This can put the buyer at a disadvantage in a competitive bidding situation.
In summary, buyer brokers requesting seller concessions to pay their commissions in a multiple offer scenario, it can potentially weaken the offer and reduce the appeal to the seller