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Well, I would say in many of my recent transactions the bank pays the commission.I know this, because when we got short sale approval, the bank reduced the commissions...how can they reduce what they don't pay?Seller signs contract. so you can argue seller pays, buyer pays nothing.Buyer brings all the money, so you can argue buyer pays, sller pays nothing since it is the buyer's money.
You are NOT supposed to advertise your services for free, unless you also state that you will be paid by the sellers cobroke... unless you really work for free I guess.
Socal_engr, you are exactly right. The problem is that NAR addresses the issue in their Standards of Conduct and completely condones the behavior that buyer agent services are Free. They are not free. Even Lem Marshall (attorney for VAR) has stated in a recent short sale class that the buyer brings all the chickens to the settlement table. Then the chickens are divided to the seller's payoff, closing fees, agent commissions and seller's equity. Who brought the chickens to the table? Lem does not like to discuss commission percentages so he uses chickens.I will bet that every broker in this discussion writes in to the buyer broker agreement terms similar as follows: "...buyer's agent will be compensated in the amount offered by the Seller's agent"Am I wrong?
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