Here are 3 big reasons why most sellers choose to offer buyer brokerage compensation:
#1) Many buyers need to allocate their cash to their down payment and financing so that they can write a more competitive offer.
#2) In today's market, many buyers need a cash cushion so that they can waive the appraisal contingency and cover for a low appraisal.
#3) And just as important, many buyers need a cash cushion to budget for future home repairs, instead of asking the seller to make inspection-related repairs.
The bottom line: Buyers with cash on hand are in a better position to offer a higher price and write a cleaner offer without an appraisal or inspection contingency. And it's the sellers who offer to pay the buyer brokerage compensation who put themselves in the position to receive the most competing offers, with the cleanest possible terms, and for the highest possible price.