Topic Thursday #18: Structuring with Buyer Premiums
In this Topic Thursday session, we go through the numbers and discuss buyer premium strategies agents can leverage to close more deals, make monthly payments more affordable, and get more buyers excited about your seller’s listing.
Replay + Resources
Watch on YouTube | Episode Transcript | Robert’s Slides
Want to join these trainings live? You can enroll in the EZ Listing Specialist Certification for free (for a limited time): 
Enroll Now
What is a Buyer Premium?
A Buyer Premium is added to the accepted offer and included in the purchase sale agreement price. This allows buyers to finance additional costs such as commissions, mortgage rate buydowns, or debt reduction without the need for extra upfront cash.
Benefits of Using Buyer Premiums
Increased Affordability: Buyers gain more leverage, allowing them to purchase more home or lower their monthly payments significantly.
As Robert explained during the session, “If I could lower the payment down by a hundred to a thousand dollars, my buyers would be thrilled.”Organic Competition: Agent Ace highlighted, “It allows the seller to get the best price because buyers have more purchasing power.”
Transparency: Normalina emphasized, “Transparency helps the seller because everyone sees the bids in real-time.”
Buyer Control: Empowers buyers by clearly outlining the financing structure and allowing flexibility to get the deal done, all without hidden fees.
Real-Life Transaction Example:
Scenario 1 (Reducing Monthly Payments):
$400,000 home at a 7.2% interest rate = ~$3,000/month.
Buyer Premium used to buy down interest by 2.5 points.
Result: Monthly payment reduced to approximately $1,956—a savings of over $1,000 per month.
Scenario 2 (Buyer Premium Addition):
Home listed at $400,000 with a 10% Buyer Premium.
Purchase agreement price written for $440,000.
Breakdown: $400K to seller, additional funds allocated to interest rate buydown, commissions, etc.
Investor Transaction Example:
Investor lists a flip on EZ for $330,000 with a 10% Buyer Premium.
Contract written for $363,000.
Commission typically structured as: 6% to agents, 3% investor profit, 1% to EZ platform (though everything is negotiable!). The buyer has built-in profitability.
Effective Scripts:
Addressing agent pushback: “Wouldn’t your buyer appreciate a lower monthly payment or getting debts paid off?”
Clarifying confusion: “The Buyer Premium isn’t an extra cost – the amount is included in the purchase price. Plus, we’ve listed this home 10-20% below market value.”
Rules to Remember:
- Premiums shouldn’t exceed the market value of the home – the deal wouldn’t make sense.
- Premiums are added to the accepted offer and included in the purchase price.
Good Habits for Sales Agents
Clearly communicate benefits of Buyer Premiums to buyers, sellers, and agents – don’t assume they get it because you explained it once.
Always be ready to look for a way to help improve affordability using premiums strategically.
Remember, the goal of an EZ Agent is to create a win-win-win for all parties – talk to people, solve problems, and put deals together that make sense.
What’s Next? Get Connected and Keep Learning!
Private Student Facebook Group: Join Here
Public EZ Community: Join Here
EZ REI Club: Join Here
Not an EZ Agent?
Become an EZ Agent – If you’re committed to learning, we can waive your enrollment fee.
