FEE SHARING & TAX ADVANTAGES
- Traditionally, sellers include agent/advisor fees within the sales price, with the seller covering these costs at closing. While the buyer ultimately pays these fees through the purchase price, only the seller benefits from the tax advantage of paying the fee as a closing cost.
- A few years ago, Benchmark introduced a practice of collecting fees from both parties. This approach relieves the seller from bearing 100% of the fees while allowing the buyer to take the associated tax advantage, along with other closing costs.
- The National Association of Realtors 2024 lawsuit has ushered in a new normal in the residential real estate industry. Sellers are no longer required to cover both agent/advisor fees, leading to a more equitable distribution of costs.
- When the buyer pays their portion of the fee, they gain the tax advantage, not the seller.
- Buyers often request that Benchmark locate off-market opportunities, paying ‘finder fees’ in exchange for exclusive access to these off-market sites.
STRATEGIC ADVANTAGES OF OFF-MARKET LISTINGS
- Sellers maintain privacy, avoiding public exposure that could impact employee relations.
- Direct negotiations with Benchmark’s agent/advisors eliminate the risks associated with multiple layers of agents and potential misinterpretation.
- Opportunities are presented directly to Benchmark’s qualified buyers without the need for extensive public marketing.
flexible list arrangements
- At Benchmark, we prioritize bringing qualified buyers to the table rather than focusing solely on the listing arrangement. We market properties exclusively to our verified buying group.