Recent changes in real estate policies made by the National Association of Realtors have reshaped the way properties are listed in multiple listing services across the country. Sellers are no longer required to offer buyer agent compensation to list their property in most NAR-affiliated MLS. While these changes have fewer implications for land buyers and sellers, they are leading some to reconsider how they approach selling their properties. While most land transactions take place through other platforms, commission of any kind has always been negotiable. So the basic principles of sales have not changed!

In the land industry, transactions can often involve unique legal and financial situations that require the expertise of a real estate professional to effectively navigate. While sellers are no longer required to cover the commission costs for buyer’s agents for properties listed in a NAR-affiliated MLS, there are many reasons why they should.

Expanded Buyer Pool

Many land buyers rely on buyer’s agents to guide them through the complexities of land transactions. Offering commission to buyer’s agents will increase the chances that they’ll show your property to prospective buyers. Buyers may not have the additional funds to cover commission out of pocket or prefer to avoid properties requiring it. Offering compensation to buyer’s agents reduces the chance you’ll miss a buyer.

Smoother Negotiations

Offering buyer’s agent commission can simplify negotiations in transactions that are oftentimes already drawn-out and complicated. Compared to a residential sale, land transactions tend to involve more legal intricacies like zoning, easements, or even mineral rights. As a result, land transactions typically require more knowledge and more time to finalize than residential sales. 

Paying a buyer’s agent removes the friction of negotiating compensation and allows for concentration on negotiations involving price and other items typically covered in a purchase contract.

Better Marketability

The final reason sellers should consider offering a buyer’s agent commission is the positive buyer perception and increased marketability it creates. A seller who is inflexible and unwilling to cooperate with their buyers could deter interest and leave a property to sit on the market longer than it should. Alienating buyers who can’t or will not cover buyer’s agent compensation can substantially reduce the buyer pool. Simple supply and demand tells us we’ll see more competitive offers for a property if more buyers throw their hat in the ring!

In the world of land sales, strategic decisions like offering buyer’s agent compensation can be the deciding factor in a sale happening or not. By taking this step, you’re showing buyers that you’re serious about selling your land and are willing to work with them to make it happen. If you’ve got more questions about navigating agent commissions, reach out to me at Wdunson@NationalLand.com or get in touch with your local Land Professional!