Tag: Commission on the GAP

In real estate, traditional commission structures unintentionally misalign the interests of agents and buyers. But with the NEGOTIATOR® model powered by Commission on the GAP, we’re flipping the script.

Here’s how it works:

1. Close Price: The final sale price of the property, which can often be negotiated lower than the list price, especially in a buyer’s market. This means more savings for the buyer.
2. List Price: The seller’s asking price. In traditional models, this price often dictates agent commissions, meaning agents may push for higher closing prices. But with Paris Paradigm’s NEGOTIATOR®, the focus is different.
3. HEV (Highest Estimated Value): The maximum estimated market value for the property by NEGOTIATOR® and agreed by buyer. The NEGOTIATOR® aims to close below this value, securing the best deal for the buyer.

💡 The Commission on the GAP or Inverse Commission:

Instead of earning more when the property sells for more, the NEGOTIATOR® earns commission based on the difference between the HEV and the final close price. The lower the close price, the greater the buyer’s savings—and the NEGOTIATOR® benefits when buyers do. This model guarantees alignment of interest between the agent and the buyer, resulting in better deals and more transparency.

In contrast, if the close price exceeds the HEV, a negative gap occurs, meaning the buyer may be paying more than necessary, and the NEGOTIATOR® may not receive commission at all if the deal exceeds the HEV (Highest Estimated Value by NEGOTIATOR®).

💬 Why It Matters: In a market where buyers seek the best terms, the NEGOTIATOR® offers a unique value. The focus shifts to securing the best price for the buyer—not simply closing the deal quickly. By aligning the agent’s interests with the buyer’s, we ensure fair, transparent, and effective negotiations.

🧐 Want to learn more about how this can change real estate transactions? Join us for the next webinar and share this page with your colleagues.