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Answers (13)
Best Answer
- Ryan Halset, "RyanHalset"
- Contributions:730
Hi stargazer,
Echoing the others, the seller typically pays the buyers agent's commission. In some cases (particularly with bank-owned or short sale homes), the seller only offers 2.5% to the buyer's agent. I can only speak for myself, but if that is the case, I accept the 2.5% and move on to helping my client close on their sale. However, if I were to ever require a 3.0% commission and would require the buyer to cover the difference, that would (and should) be discussed in an initial meeting about purchasing real estate and working together.
Best of luck,
Ryan Halset, Realtor
Boardwalk Real Estate | Seattle, Wa
Echoing the others, the seller typically pays the buyers agent's commission. In some cases (particularly with bank-owned or short sale homes), the seller only offers 2.5% to the buyer's agent. I can only speak for myself, but if that is the case, I accept the 2.5% and move on to helping my client close on their sale. However, if I were to ever require a 3.0% commission and would require the buyer to cover the difference, that would (and should) be discussed in an initial meeting about purchasing real estate and working together.
Best of luck,
Ryan Halset, Realtor
Boardwalk Real Estate | Seattle, Wa
- Raina Pierce, "Raina C. Pierce"
- Contributions:17
Typically it is the seller that pays commissions however, every transaction is unique and we do our best as agents to educate our clients during the home buying process.
- Pat Lord, "patlordagent"
- Contributions:283
Sign a buyer/broker agreement up front, then there are no surprises.
- Hugh Oake, "hud_va"
- Contributions:80
Stargazer,
This how real estate agents make their money is by commission, there are acceptation to the rules. The general way agent receive a commission is from the seller's side of their proceeds from the sale of the property. I love the word negotiate, because if you make a deal to pay the agents commission, now you can negotiate the selling price. This is one way to get creative, you just have to think outside the box.
Good luck with you real estate purchases or selling.
This how real estate agents make their money is by commission, there are acceptation to the rules. The general way agent receive a commission is from the seller's side of their proceeds from the sale of the property. I love the word negotiate, because if you make a deal to pay the agents commission, now you can negotiate the selling price. This is one way to get creative, you just have to think outside the box.
Good luck with you real estate purchases or selling.
- stargazer777
- Contributions:4
IMHO a complete answer, like that provided by John, Sunnyview, Ryan, Steadystate etc below. is the best answer. As a consumer I would prefer a detailed answer with different scenarios that would satisfy me and make me trust my Agent. Not a short 'Technically Correct' answer that could potentially mislead me as a client.
Thank you all.
Thank you all.
- Bill Knapp, "bknapprealtor"
- Contributions:17
Hello Stargazer, reading your initial question and response has really opened my eyes to how I need to be careful when I present myself to my clients.
My fee has always been paid by the seller, but lets be honest as an agent I expect to get 3% when I help close a deal, regardless of who is paying.
I am going to stop with the whole "selling side pays commission" and go forward with an "I get paid 3% when a purchase closes," period. That is a clearer message it think.
This is going to be one of those threads where by getting involved I have probably learn a very valuable lesson. Thanks for bringing this subject up.
Again best of luck,
Bill
- sunnyview
- Contributions:25120
You are right. If your agent is not explaining when you ask, they are not doing a competent job. Agents, like anyone who works, want to get paid. That means that if you like a house listed on the MLS that has a buyer paid commission, you will pay nothing out of pocket directly to the agent.
However, if you find a FSBO or owner sold house with no fee agreement and you sign a representation agreement with the agent, you would likely be responsible for the full commission unless the seller is willing to pay or split it with you. BTW Zillow is great place to ask questions and get input.
However, if you find a FSBO or owner sold house with no fee agreement and you sign a representation agreement with the agent, you would likely be responsible for the full commission unless the seller is willing to pay or split it with you. BTW Zillow is great place to ask questions and get input.
- stargazer777
- Contributions:4
HI Bill, I am not disputing the value of a Real Estate Agent. Did you read my initial posting? I clearly stated that: "First meeting I asked her what her fee was and she told me: "The commission is paid by the seller so you should be fine"." Only on the 3rd visit did she say her fees was 3% and paid by the buyer, if not the seller. Technically she did not say anything wrong to me but she held back complete information from me which I had to find from the Internet.
Reading all the threads here now I understand where the fees comes from? how the agent may not get the complete fees and in those circumstances it may come from the buyer (if the buyer agrees). Now if I needed to understand all this from the internet, the agent is clearly not doing a competent a job.
Reading all the threads here now I understand where the fees comes from? how the agent may not get the complete fees and in those circumstances it may come from the buyer (if the buyer agrees). Now if I needed to understand all this from the internet, the agent is clearly not doing a competent a job.
- Bill Knapp, "bknapprealtor"
- Contributions:17
Hello Stargazer,
Discussing fees is difficult for some and it is very possible your agent didn't do a good job. But is sounds like she did mention up front that her fee was 3%, and she was right it is almost always "paid by the seller." Which only means the money comes out of the seller's side of the final transaction sheet.
Playing devils advocate for the agent, how many hours has she spent with you? How much time researching the market, educating herself, making phone calls, arranging showings, and getting paperwork ready. How much overhead has she had in that time on auto, gas, office fees, Realtor fees, ect.
As Realtors we make all of money on our sales and zero money on the substantial grunt work we do. I am a former Airline Captain and I can tell you, this job requires way more of my time, effort and passion than flying ever did.
Having said all that I can't speak specifically to your experience, I wasn't there. But I do want to you understand the agent did spend time and effort on you, was it productive? And if so does she deserve any compensation? It is possible the answer to those questions are no.
I hope that in the end your housing search is sucessful and you find a great place to live!
Bill
Discussing fees is difficult for some and it is very possible your agent didn't do a good job. But is sounds like she did mention up front that her fee was 3%, and she was right it is almost always "paid by the seller." Which only means the money comes out of the seller's side of the final transaction sheet.
Playing devils advocate for the agent, how many hours has she spent with you? How much time researching the market, educating herself, making phone calls, arranging showings, and getting paperwork ready. How much overhead has she had in that time on auto, gas, office fees, Realtor fees, ect.
As Realtors we make all of money on our sales and zero money on the substantial grunt work we do. I am a former Airline Captain and I can tell you, this job requires way more of my time, effort and passion than flying ever did.
Having said all that I can't speak specifically to your experience, I wasn't there. But I do want to you understand the agent did spend time and effort on you, was it productive? And if so does she deserve any compensation? It is possible the answer to those questions are no.
I hope that in the end your housing search is sucessful and you find a great place to live!
Bill
- SteadyState
- Contributions:783
The agents say that the seller pays the commission. That is technically true but is also the greatest misinformation marketing campaign by the agents and the NAR.
What is done is that the cost of the sales commission (typically 3% goes to sellers selling agent/broker and 3% goes to buyers selling agent/broker) is included in the price of the home. Now when you buy the home - you pay the price of the home and the sellers selling agent/broker takes 6% of the price of the home and keeps 3% for himself/herself and pays 3% to the buyers selling agent/broker.
So who pays the commission - you (the buyer) pays the $ but the seller's selling agent/broker only distributes the commission.
What is done is that the cost of the sales commission (typically 3% goes to sellers selling agent/broker and 3% goes to buyers selling agent/broker) is included in the price of the home. Now when you buy the home - you pay the price of the home and the sellers selling agent/broker takes 6% of the price of the home and keeps 3% for himself/herself and pays 3% to the buyers selling agent/broker.
So who pays the commission - you (the buyer) pays the $ but the seller's selling agent/broker only distributes the commission.
- Gina Ard, "GinaArd1"
- Contributions:7
Stargazer: You are right to feel your agent has lost credibility from you. Minimally there is a need for further explanation from her. The seller pays the commission for the transaction, for buyers and sellers agent. It is generally bad business to ask a buyer to pay and you are right to find a reputable agent.
- sunnyview
- Contributions:25120
Generally, the seller pays the agent commission not the buyer. You can agree to pay her a commission, but I would not do it. I would also not sign a buyers representation agreement with her. I do not get a good vibe from what you have posted about this agent.
As a first time buyer, you need an agent that will not spring things on you, but instead take the time to answer your questions, walk you through the process and work hard on your behalf.
As a first time buyer, you need an agent that will not spring things on you, but instead take the time to answer your questions, walk you through the process and work hard on your behalf.
- John Hurlbut, "jhurlbut"
- Contributions:87
The commission is indeed paid by the seller. A seller contracts with an agent to list their home for X percent of the purchase price. Let's say 6%. The listing agent then offers a portion of that amount to the agent that brings a buyer to the home. Typically 1/2 of the total or in our example 3%. Most agents will be fine with whatever percentage is offered on the listing as compensation. However some agents do have a minimum fee they are willing to work for. It sounds like in this case your agent expects 3%. However, he or she should have had you sign a buyer's agency agreement up front stating if the advertised commission was less than her minimum fee that you would be obligated to pay the difference. Bringing it up only after you've found the property you're interested in purchasing is akin to bait & switch. I'd ask them what the stated commission is on the listing and why this discussion is coming up now.
In Seattle market who pays the buyer agent's commission?
thanks
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