I understand that when you sell your home, I would expect about 6% of the selling price to go to the selling agent. However, if you do not already own and you are working with an agent to purchase, what are the fees payable to the agent who finds you a home? Or are they paid only by the seller?
2006-12-06 05:02:05 · 7 answers · asked by Danielle 1 in Business & Finance ➔ Renting & Real Estate
You've gotten some partial answers here. So I'll try to explain it too.....
Find a Realtor who you trust. Sign a buyer's agency agreement with them. If the average going rate that listing agents are paying the buyers agents is 3%, then have your agreement say basically the following...
I'm your buyer, you're my Realtor. Work hard for me, showing me the best houses for me. If 3% is paid to you by the seller or seller's agent, I won't pay you anything. If they only pay 2%, I'll cover the other 1%. If it's a FSBO, or for whatever reason they won't pay you anything, I'll pay you the whole 3%.
This way, YOU get the best house, and eliminate the built in incentives to NOT show houses that won't result in a full paycheck.
Note to sellers - When you list your house at a discount, and less than the average is offered to the buyers agents, you can bet that your house is NOT being shown to all the buyers that it matches. I've seen listings trying to save 1% (offering 2%) drop the price 15% before it sells...... MY buyers get great deals this way all the time!!!
2006-12-06 08:25:26 · answer #1 · answered by teran_realtor 7 · 0⤊ 0⤋
Commissions are premised on the agreement between the client/customer and the agent. The client/customer can be a seller or a buyer. When a seller becomes the client/customer of an agent they agree to pay a commission amount. The agent then typically advertises to other agents that if they bring him or her a buyer that they will split the commission with them. If a buyer is under contract with an agent then the buyer's agreement usually reflects a percentage commission to be paid in the event that the agent is not compensated by the seller's agent or the seller in the case of a For sale by owner. The commission amount varies premised on the negotiations between the parties and the amount of the commission is paid from the proceeds at closing in accordance to the closing instructions and the meeting of the minds reflected on the accepted offer to purchase agreement. The money to pay for the commission came from the buyer but when tendered to the closing company it is the property of the party to be disbursed to.
Buena Suerte
2006-12-06 05:18:44 · answer #2 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
To put it simply:
Seller offers listing agent the entire commission, usually 6%, to list the property...on MLS. The entire purpose of the MLS is for other agents to see what properties are listed.
The listing agent then will offer half of his commission to the agent that will find a buyer for the property he has listed! When he enters the data on MLS, the data includes the commission offered to the buyers Realtor! Otherwise, what incentive would the buyers Realtor have to want to take a buyer to see the listed house if he/she will not make any commission out of it? I'm not saying that they all do that, just pointing out the possibility of it!
Yes, unfortunately BUYERS, there's a chance that your agent is not showing all the listed properties...and showing you only the ones they will be getting good commission out of!
(Sorry agents, your secrets out! Hate me all you want, but I'm for the buyers/sellers. We wouldnt have jobs, if it werent for them! I too own a mortgage and realty!)
2006-12-06 06:00:09 · answer #3 · answered by ALEGNA 3 · 0⤊ 0⤋
Commissions are paid by the seller -- unless there is a written agreement with the buyer to pay something. Buyers can independently contract with agents to locate property & agree to pay them a fixed foee and/or all or part of the sales commission. It is common in commercial real estate sales & leasing; less so in residential.
2006-12-06 05:10:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you buy from the Realtor who has the listing on the house from the seller you do not pay the Realtor's fee, the seller does. If, on the other hand, you hire a buyer's Realtor to locate a home for you, negotiate a sales price, and write up your offer, you negotiate the Buyer's Broker fee with them directly when you sign the contract hiring them to work for you.
2006-12-06 05:11:20 · answer #5 · answered by mazziatplay 5 · 0⤊ 1⤋
Don't pay a Buyer Agent. Have all this worked out even before you see the firsyt property
2006-12-06 07:03:38 · answer #6 · answered by Anonymous · 0⤊ 0⤋
commissions are paid by seller -- usually 6% total -- 3% going to each agent
2006-12-06 05:07:35 · answer #7 · answered by Steve P 5 · 2⤊ 0⤋