I'm looking to buy a house. My agent wants us to sign a Buyer Agency agreement where I pay her a retainer and a "success fee" when we buy a house. I was pretty clear that the agent always makes their money from the commission the seller pays. That's been the way we've seen it in the past. Is this a new trend or do I need to get a new agent fast?
2007-02-08 03:46:06 · 5 answers · asked by hrland 3 in Business & Finance ➔ Renting & Real Estate
LOL.
I'm a REALTOR, and I am happy to say that I need not flog my clients by charging them a retainer or any other such fee!
OMG... If that agent has to do that, then in my opinion, you need not work with them!
Good luck!
2007-02-08 03:59:31 · answer #1 · answered by Art 4 · 0⤊ 0⤋
I know this can be different in various locations, but the majority of the time buyers agents are paid their commission by the sellers. However, there are no set rules on how this works. A few buyers agents are under the impression that they can represent the buyer better because it is actually the buyer and not the seller paying them. I think this logic is off base. A good Realtor will look after the best interests of their buyers no matter how they are paid. Also, some buyers agents have spent many hours with costumers who end up using another Realtor or don't use them at all. All their hard work and time ends up making them no money, so they seek to receive some money upfront to show that you are a serious buyer. What they are doing isn't wrong, it's just a different way to operate. I would personally do what you feel is best. There are plenty of ethical Realtors out there that will not charge you for buyers agency services and are paid buy the seller.
2007-02-08 03:59:48 · answer #2 · answered by Laura K 1 · 1⤊ 0⤋
An agency relation with a buyer's agent is a fiduciary relation and held to be of the highest standards with your best interests only. As to costs for such representations it's whatever the agent and the principal strike. The usual method is that the agent is compensated by the seller's broker when the transaction closes but some seller's agents will not share their commissions with a buyer's agent because it is not in the best interest of their fiduciary client the seller. You can always tell the buyer's agent that they are to be paid by convincing the seller's agent to split their commission versus that so called "success fee"
Your call
Buena Suerte
2007-02-08 04:10:28 · answer #3 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
There is no set rules on how an agent gets paid. If you don't like their terms counter offer or go to a different agent. Its not always the case that the seller pays the commision, thats been the common way of doing it but all is negotiable.
2007-02-08 03:49:44 · answer #4 · answered by meathookcook 6 · 2⤊ 0⤋
yeah i have never heard of the buyer paying the agent too
sounds like they are double dipping
2007-02-08 03:49:49 · answer #5 · answered by jess 2 · 1⤊ 0⤋