Sellers in the Chicago market are using a multiple of marketing techniques to sell their homes in order to avoid reducing prices substantially. One of these techniques is to offer realtors extra money to push their homes in the form of higher commissions. It is important to know this trend as your realtor should be informing you if he/she is showing you a property with this kind of incentive.
Typically the commission to the buyer’s realtor is 2.5%. Any higher commission on the listing sheet is used as an incentive for the realtor to push the particular condo or home. Keep in mind that a buyer’s realtor has a fiduciary relationship with you and should make you aware of this situation.
In some cases, there are thousands of dollars involved for the incentive to the buyer’s realtor. Once you know about this situation, you should first discuss the reason why the incentive is being given with our own realtor (problem condo or some location issue) and if you feel comfortable purchasing the property. Then decide if you would like to have your realtor get the extra commission or if the extra money should come back to you.