Who pays the buyer's broker if the owner is selling their own apt w/out a seller's broker?

Question

I want to buy from the owner. Will they pay my broker? (I am in NY. It is 6% total divided btw seller's and buyer's broker here.)

Answer 1

It will depend what you agreed to in your contracts. First of all, you should have signed a buyer's broker contract with your agent before you start looking -- this contract should state who pays and how much. Next, your agent should protect themself with a one-time showing agreement from the seller of the home.

Bottom line, if you have no buyer broker agreement and go to the FSBO yourself -- there is no legal requirement for anyone to pay your agent. If your Buyer Broker Agreement doesn't spell out that you are responsible to pay if the seller doesn't, then they don't have a legal standing to collect commission.

Finally, commissions normally are negotiable and while the majority of listing agents may charge 6% and give 3% to the buyer's agent, that is not required. I know in Maryland, the listing agent can negotiate commission and then puts into the MLS the amount of commission the buyer's agent would receive.

You should ask your agent what they would charge as a consultant for a FSBO if you have no Buyer broker's ageement

Answer 2

Why would a person trying to sell their own place pay your broker? They did not hire your broker, you did so you will have to pay this broker yourself.

The person selling their own property is attempting to put the maximum amount of their hard earned equity into their own pocket and not into a broker's pocket.

You might ask if they are willing, but if it was me I would not pay a broker I did not want nor hire.

Ask yourself this question would you pay for something that you did not ask for nor want? Well this seller did not hire or want a broker.

I hope this has been of some use to you, good luck.

"FIGHT ON"