Profile picture for coreyct

What are the typical Realtor fees for buyers in Colorado or is it all paid by the Seller?

  • July 14 2010 - Colorado Springs
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Answers (10)

Profile picture for Steve Toohey
Old thread, but here we go.  Although the seller typically pays commissions, pay close attention to the "exclusive right to buy" contract that buyers often sign with their brokers.  These can obligate the buyer to pay!

I typically offer discounted percentages to sellers based on the homes sale price (decreasing % based on price), and I offer up to 1% rebates of the sales price to buyers I represent (based on the commission structure offered by the listing agent).

Contrary to some opinions expressed by brokers, OF COURSE we can discuss our commissions!  All commissions are negotiable, and discussing commissions openly is clearly in the best interest of the consumer.

Make an informed decision when you buy or sell.  Should you pay significantly more for a broker's service just because your home has a higher value...? 
  • January 17
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I have to weigh in, albeit late, on this GREAT question. 

Too often buyers are told that the real estate agent is FREE for the buyer.   Sure, here in Colorado, buyers don't typically cut a check to the real estate broker who is helping them out, but make no mistake, they are paying for it.  After all, every seller considers the total commissions due before deciding what offer price to accept.   So, it really behooves buyers to ask this question.

The problem is that the amount the buy side broker is paid is pre-determined by the seller in the listing agreement.   So, it's not the full story to just tell a buyer, "it's all negotiable", at least in terms of the buyer being able to negotiate what that payout to the buy side broker is going to be.

BUT, the buyer can negotiate with their broker HOW MUCH of that commission the broker is going to keep.    What would the broker do with the part they aren't going to keep?   They can (legally) give it TO THE BUYER as a commission rebate!   Some call it a commission refund, or even a buyer rebate.   But whatever you call it, the US Department of Justice says it makes buying a home less expensive, and the IRS treats it as a reduction in sales price.   Google it.   And of course, feel free, to call in expert on this like me.
  • November 26 2014
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As a Buyer, you can search online and go to open houses; but when you are ready to look and purchase, it is in your best interest to hire an  experienced agent that is not affiliated with the listing company of any properties you are interested in. 

I also work with short sales, foreclosures, and for sale by owner properties and those tend to pay less than the average 2.8%. I usually will discount the commission if asked and if there is a good reason, closing costs, low appraisal, etc. to help out the buyer. 

If you are Selling and Buying working with the same agent will generally offer you a better deal, so you pay less when selling your own home. Sometimes paying as low as 2% total commission up to the average 6% (split between both agents). This is only a generally accepted amount, and every transaction is different. There could be less "work" if you already find a property to buy. In that case, ask your agent to credit you back a portion since they didn't have to spend hours searching for  a property. 

Also, if a listing agent doesn't disclose what the Seller's are offering to a buyer's agent, they won't get any showings. If they offer a premium, they get more showings, if they offer less than average.. generally no showings.

It's all subjective.. but remember if you try to get the cheapest agent.. you get what you pay for!!! 
  • October 31 2013
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Commissions and fees are negotiable and should be discussed.  It is not prohibited by any law or regulations.
Consumers should discuss any fees that they are being charged.

Real Estate licensees are encouraged not to discuss the fees of others because it could be viewed as the establishment of a standard in fees.
There are no standard fees - all fees are negotiable.

Different real estate agents, brokers and companies offer different levels of service.  Agents, brokers and companies offer their services for different fees.

Buyers usually pay little or no fees to their broker.

  • July 19 2010
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In Colorado, buyers rarely pay any fees or commissions at all.  The agent helping the Buyer usually gets paid part of the Seller's Agent's comission.  So, it's in your interest to get the most loyal, experienced, and aggressive representation you can.

As others noted, all fees are negotiable.  The idea that it is forbidden to discuss fees is baloney.  How else could you negotiate them?
  • July 15 2010
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Profile picture for Kelly Young
Hi!  You will find in Colorado that the buyers agent (Realtor, Broker, Buyers Agent, Transaction Broker, etc) are often paid by the seller however that is determined by the listing contract the seller has and/or the Buyer Agency Agreement.  Colorado did a great service to buyers and sellers requiring licenses Brokers (agents) to disclose in what capacity they are working and who pays the fees/commissions.  I hope this is helpful. 

Kelly
  • July 15 2010
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It must be clarified that a Realtor is only a "brand" of real estate Broker. Real Estate Brokers may negotiate their commissions as they see fit. The anti-trust laws forced Brokers to not fix their fees, which at the time were 6%. Now, competition has caused most residential brokers to settle around 5.8%. But, each broker is free to negotiate their own commissions. This is not my rate.
  • July 14 2010
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Commissions are completely negotiable. For those listed by a Realtor there is a specific buyer agent or transaction broker coop fee paid by the listing broker.

In the event of a FSBO property not in the MLS, there may a coop fee offered by the owner, or the buyer may ask the seller to pay their buyer's agent fee.

The buyer's contract with the broker specifies how the payment for services is handled.
  • July 14 2010
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Every Transaction is different and as Realtors we cannot publicly discuss fees etc.  If you look at different properties, if will say if the Seller is willing to pay a commission to the Buyer's agent.

Having a Buyer's Agent will really help you as they will work hard to find you the perfect property.  You can come to a mutual agreement on how you will work together.

Have a chat with a few and see who you click with.  Here's an article that may help [link removed by moderator]

I am happy to have a chat

Julie Reddington

[contact info removed by moderator]

  • July 14 2010
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Profile picture for David Widlund
5.8% split between both agents, paid by the seller. I think most listing agents cut their commission, so it is less than this more often than not.
  • July 14 2010
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