Why does my Realtor that works for me, THE BUYER, get paid by the seller?

Why would a home buyer ever hire a negotiator that is going to be paid by the opposing negotiator?  Is there any other business in America or the World that operates under this premise.  Is the fiduciary responsibility enough to protect the home buyer?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (31)

Pasadena, Yes that's what I am saying.  The HUD-1 will be an exact replica of what transpired at the closing.  There is 125 years of blatant brainwashing apparently. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Alyse, That all well and good but why am i forced to join an existing contract to be sure my agent gets paid?  I want to pay my agent as my consultant as my advocate, directly.  My agent is a full time agent, just open minded that perhaps there is more than 1 way for the agent to be compensated.  Why would you take the leap as if I am going to do this myself and therefore make costly mistakes.  Why cant the same realtor give me the same great advice but get paid differently?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Profile picture for Pasadenan
Glenn, are you stating your agent & broker, and your loan officer and their lender's underwriter allow you to choose which ever of the 3 options you want for any of the transactions???

What is going on the HUD-1 form, or are you skipping this?

(I still can't believe so many agents are so dense as to not understand what you are stating... it appears that the have been brainwashed by NAR and a "system").
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
The seller and their listing agent negotiate a fee at the time of listing.  Since buyer representation from an experienced agent comes with no additional fees to the buyer, most informed buyers have their own agent-representatives. 

The job of the listing agent is to market the property and to provide information regarding the property to professional agents who are working with approved buyers.  The percentage of listing agents who actually secure the buyer for that particular property is small; therefore, the listing agent offers a portion of their previously negotiated commission to the agent who brings the qualified buyer.  If you buy directly from the listing agent, you may or may not pay the same price since the listing agent is working to get the highest price for the seller but you definitely won't have someone on your side.  The listing agent still has an agreement for the negotiated commission price and will retain 100%.  A buyer's agent will educate the buyer and assist in negotiating with the buyer's best interests in mind.  If an agent is experienced, they will have faced many pitfalls that they're prepared for and can save time and complete transactions.  They will compile information and inform you of terms, time frames and all of the other aspects of the process that you don't know (it's obvious that you're not a real estate expert although I'm sure you're an expert in whatever it is you do).  Your agent could have explained this to you.  Assume that a full time agent knows enough more than you do to make a transaction run smoothly and can save you money in the long run if you do it yourself without knowing what you're getting yourself into.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
If I choose to take the commission off of the selling price and actually reduce the price for the home, The purchase price would be the real "adjusted" price.  I would pay transfer tax on the lessor amount.  IF I choose to take the money as an overpayment for services rendered, then, it proves the money was mine and I simply get it back, its a non taxable event as it is a pass thru cost.  My third option is to take it as a reduction in closing fees and / or I can use a portion of the money, up to 1% of the mortgage amount to pay down my rate.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Profile picture for Pasadenan
But the question then remains what is the "real" purchase price for underwriting purposes; and what goes on the HUD-1 form, or is this avoided by avoiding government backed loans?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Marty, I have been saying that all along and everyone argues that its the sellers money.  So i give it to the seller so he can give it to his agent, who can give it to his broker that can then give to my broker who then gives it my agent.  Take out the "Chinese Walls"  its my (BUYERS) money. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Pasadenan... Interestingly, he suggests this is NOT a rebate but a reimbursement for an overpayment of services rendered.  Since, I get to pay for whatever we contract for during the process and I have paid for all the services by the time the settlement will take place, the commissions he receives would be treated as an overpayment and returned to me. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Big picture, the buyer is paying for both agent's commissions, since it is the buyer who is bringing the money to the table, not the seller.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Profile picture for Pasadenan
Glenn -

I'm glad that you were able to find an agent that was able to work with you on your terms.  Many others have posted interest in working with an agent in the same manner as you are doing, but have posted that most are not willing to accommodate them.

Hamp does bring up an interesting question regarding the Underwriter.  But typically, there is not an issue of a rebate up to 3% that is applied to closing costs.  If it is a cash rebate; it might get more complicated; but then possibly an investor could have that carry over to the next purchase?

Still, if one was doing that many purchases, why wouldn't they just get their license as AzRob did?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
I appreciate the answers and the conversation, thanks to all.

Charles, My point is I don't want the "WHOLE BUFFET", I want to order Ala Carte' and only pay for what I eat.  I don't mind paying a good amount for the food I do take.  Whether I eat it or not, shouldn't be the lynch pin for whether or not the restaurant gets paid.  Conversely, Again, I don't want to pay for the whole buffet just the parts i'm eating. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
Glenn - what are you, the guy who complains the roast beef is dry at the otherwise incredible buffet? Sounds like you're working with the wrong agent!

NY State law requires ... REQUIRES ... a realtor to go over with you a disclosure stating clearly who the agent is representing at the first substantitive meeting with you, and you sign this and get a copy.

And guess what? This disclosure gives YOU get the choice to have us work in YOUR best interest, or the seller's best interest. Why would you ever choose an agent to work in the seller's best interest?

But regardless, if you have doubts in your agent's dedication to you, why are you using them?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2011
The buyer negotiator is paid by the seller's agent for securing a purchaser
for their home. For instance the listing agent will secure a listing agreement with an owner for 6% of the sales price and that listing agent then offers half of the commission or 3% to any agent that brings a purchaser to the table. So the buyer agent is being paid by the listing agent not the seller directly. 

The buyer agent doesn't in any way have direct contact with the seller only the other agent and represents the buyer's interest at all costs under the Code of Ethics that all Realtors are subject to follow. It is in this way that the buyer's agent is able to responsibly represent the needs of their customer. I hope this clears things up a bit. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 23 2011
Some states will not allow the rebating part. So you would have to convince the Listing Broker to take only their split at the closing table, even though they had a contract, that the Buyer is not a party to, saying they were due a larger portion. I know some Listing Brokers already delineate whether they will reduce their split if they sell the house themselves, and etc...but not in my neck of the woods.

This would be an ideal model for me.
Prospect comes in says "I want to buy a house". I say OK do you want to be pre-qualified, or pre-approved, one costs x and one costs 2X, ($250 and $500 approx.) upfront, right now, before I lift another finger. After that step is completed and a qualified price range is determined, Buyers Agency agreement is executed and says, you pay me 1.25% of pre-qualification amount, right now, and I will spend the next 60, 90 or 120 (if negotiated) days trying to find, and close, your ideal home.

The paying upfront and getting rebated is overly complicated and is going to ruffle the feathers of the avg. underwriter. If Lender's, and States would allow it freely, I would gladly do the 1.5% upfront, regardless of success, for a 3% rebate at the table, if we get to the table. The lawsuits will arise form the not getting to the table deals. Then the concept falls apart. Unquantifiable risk has entered the picture. And the risk has been foisted onto the poor uneducated, unlicensed, uninsured and bonded, Buyer, whose whole idea this was. And, we can't let that happen in a free market democracy.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2011
Profile picture for Pasadenan
From what Glenn stated, the Buyer agent contract with the client would state the hourly and per service rates, and would also state that the entire selling agent fee in the multiples would be rebated back to the buyer as an "over paid fee" refund.  Thus, as long as the Agent's broker is on board with it, I don't see a problem.  The listing agent would never know.  Of course, if there is government money involved, a HUD-1 form would still need to be filled out.  But then the selling agent just lists what the actual paid fees were for the service.

For someone buying multiple properties on an investment basis frequently, I could see them wanting to make such arrangements with their agent.

Yes, there is the issue of cash on hand; but there also is the assumption that the real estate investor is looking to minimize costs rather than just looking for how much they can leverage their money.

I had forgotten that you were a broker in addition to a Loan Officer.  I know you had mentioned it in the past.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2011
Pasadenan,
First, and foremost, I don't know, because I have never, ever been approached by a client who would rather pay me out of their pocket, than have me be paid by the Seller, in the traditional model, as part of the negotiated price.

Secondly, for 99% of my life, I have been the Broker, so there was noone to clear the concept with if it were ever proposed. The other 1%, my Father was my BIC, so I had implicit Broker like authority to make that decision, if I ever faced it. I have always been free to discount, rebate, and/or restructure, at my will.

Thirdish, I can't see why any Buyers Broker wouldn't accept the outlined arrangement if offered. As said, it would reduce their risk v reward profile dramatically.

Lastly, I don't know that a Buyers Agent wouldhave to disclose their upfront commission arrangement to anyone, other than in order to grease the wheels of the transaction in the Buyers favor. A commission split agreement has to be disclosed when entering a 'listing" into the MLS system. This arrangement wouldn't have anything to do with the MLS, per se.

Of course, the Buyer needs to be sure the Buy Agent isn't taking their upfront money, and a piece of the MLS split, and then the rub arises. The Buyer can't forcibly change the listing contract, and the commission split that is interred within the agreement. Just because the Buy Agent waives their right to their split doesn't mean the Listing Broker want still demand all of the agreed upon percentage, and therefore constrain the Buyer's, and his Agent's ability to negotiate bottom dollar price. The approach could, in fact, turn out to be self defeating, and is therefore marginally beneficial, and less than marginally popular, at this point in time.

Here's the rub. This way of doing things hasn't taken off because the average prospect a Buy Agent encounters has no idea if they are qualified, what they want, what it costs, or how to obtain it. Buy Agents must sift through 8 to 80 of these to find an actual Buyer and then find a house they like and can afford etc...and the art of deciding who to spend your time on is risk laden and inexact to say the least.

If every one who came in had the mindset that Glenn has, the whole game could be played differently. After the next bubble bursts, the thing to moan about would be Buy Agents taking smaller amounts of upfront money from folks, only to find that they weren't qualified to buy, and what shysters they were for doing it that way blah blah blah....

The answer to the question Glenn proposes is actually simple. It goes like this. People hire agents either due to business, laziness, or insecurity.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2011
Profile picture for Pasadenan
Hamp, does that mean that your broker is on board with you being paid up front?  If so, what is their agreed upon fee or percentage of what you are paid, since the broker has to release the stated commission?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2011
Glenn, you have clearly missed part of my point. Most buyers, and by most I mean like over 90%, don't seem to have ANY extra cash to give anyone for anything, This may seem crazy, but it is fairly accurate. The ones that do have extra cash then have to decide if it is feasible and practical to use cash to avoid the cheapest borrowed money they are likely to ever be offered, while the borrowing of said cheap money is also subsidized by the tax code. Most take the max. liquidity position here.

If a buyer has additional cash on hand, they can try to do it anyway they can dream up. It is all negotiable, and in my experience quite lithe, and limber.

And by the way, your perception of the role of the Agent as the chief negotiator seems to me to be overblown. The Buyer has to negotiate the deal, through the Agent. The Agent may, or may not determine, or even influence, the practicalities, or tacticalities, of the back and forth. That depends on the level of comfort that the Buyer has with their own negotiating game skills. The Agent should be determining the starting parameters of the negotiation but they certainly are never simply doing them on the behalf of the Buyer without input, as your hyperbolic wording implies.

In many, if not most cases, the Buyers infatuation with one particular house, and fear of losing it to someone else (real or not), usually overwhelms their need to extract every loose nickel from the Seller. Hence the preponderance of non-creative, non-combative, meet-in-the-middle negotiating tactics.

Other than all of that, I'm with you buddy! As a Buyers Agent, I would love nothing more than to be paid just like you suggest upfront, and by "my client", and whether, or not, the deal closes (especially this one, this would reduce the cost of Buyer Agency by half, at least).
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2011
A realtor told me that they charge for consulting and charge by the hour or task or bundle of services.  I am asked to eliminate his risk of working for free as I am paying for everything he does even if I don't buy a home.  I see 2 advantages, 1) He has no conflict of interest negotiating for me while getting paid by them and 2) he has offered his commission as my reward for eliminating his risk.  He is willing to reimburse me the total buyers side commission as an overpayment of services rendered, since he was paid in full by the time the settlement took place.  I can then use those savings to buy down a point on my mortgage, pay the mover, go to Best buys and get a 55 inch TV, hit Sears for appliances etc.  The money down for the point saves 30 years worth of a lower payment, I am guaranteed to lay out less than I get back and I get a home for 3% less than i had before I put my money where my mouth is.

Thoughts?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2011
Profile picture for SoCal_Engr
Two buyers attempt to buy a house listed at $300K.

Buyer A offers full price, with 20% down. To close, Buyer A has to bring $60K for the down, plus closing costs.

Buyer B also offers full price, with 20% down. But, Buyer B insists on paying the buy-side REA out-of-pocket. To close, Buyer B has to bring $60K for the down, plus the closing costs, plus $9K for the buy-side REA. Buyer B has just increased their cash requirement by 15%.

Let's assume Buyer B is able to negotiate the buy-side commission out of the price, dropping the sale price to $291K. At 20% down, Buyer B is still out-of-pocket 13.7% more than Buyer A.

So, why does a buyer want the buy-side REA paid by the seller via the listing agreement? I'm not sure the buyer "wants" that, but it is a mechanism for burying the commission into the mortgage, easing the cash-on-hand requirements for qualifying, and (as already mentioned by Hamp) increasing the "buyer pool".
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
All REAs and Mortgage Professional have a Fiduciary Responsibility to their clients. In reality Glen, the buyer is paying for the whole enchilada. The commission comes directly from the purchase price.

Happy funding, Rudi
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
Profile picture for Pasadenan
"Belive me, if a Buyer agent is incompetent or dishonest, they will not last long at all in this business." -

We only wish that were the case... the longer they are in the business, the better they are at covering the deceptions and manipulating the rules.  And they seem to see nothing wrong with withholding information or telling a client what they want to hear rather than what is actually the case.

I've known many agents in the business for over 40 years that are more concerned about their "top agent" status than any needs or desires of a client.  And even less concerns for integrity and ethics.  (Not the ethics as NAR defines them, as those "ethics" are only for the agent's protection and no one else).
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
A huge reason that the system was set up that way, and has remained that way, is because it increases the "able" buyer pool incredibly. If Buyers paid the commission, it would increase the financial strength required to qualify, thereby reducing the number of qualified buyers. Hence, the Seller pays the Broker, and or Brokers, arrangement. It wasn't too long ago, that the non-listing agent couldnt look out for your interest, or even act like they were. At least they weren't supposed to, then they would be doing essentially the reverse of what you're worried about. To conclude, if you think it's weird that the Seller is paying your Agent, how do think the Seller feels about it, if they take time to think about it, as you obviously have? They have to pay the SOB, that, if they are doing their job, is beating them out of cash, daily for six weeks.
It may seem to be a screwy system, but it is that way to allow more Sellers to sell, and more Buyers to buy.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
Hi Glen.
I will sail on Captain Seth's ship any day.
It comes down to the reputation and integrity of the Buyer Agent. Belive me, if a Buyer agent is incompetent or dishonest, they will not last long at all in this business. There are to many Buyer agents dedicated to great service out here for you to find.....Good luck!!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
I can't believe you are still alive. Nobody from the secret underground world of the Realty Blackcoats has come after you.

This is the greatest conundrum in real estate that most realtors are reluctant to talk about. Of course it's absurd!

But...you need to ask yourself the following question: Would you pay thousands of dollars out of pocket for the services of a buyer's agent?

I often spend at least 100 hours of service (searches, showings, calls, emails, etc) with many buyers. And some might only get 50 hours. But what is the fair rate: Lawyer rates. Plumber rates. 50 to 250 bucks an hour. People don't want to pay that out of their pocket.

So the solution is extremely dicey, and probably the reason there is so much sleaze in this business. As a buyer, you only have trust in your agent, and it's this agent's reputation that you need to rely on.

Let's take a $300,000 property. I, the buyer's agent, can show you, my client, comparables for $275k. The seller's agent can show me ones he thinks are good at $300k. We have a stalemate. A disreputable person would convince you to just pay the 300k. But an honest person who values their reputation knows they get paid no matter what so why not get you the best price possible. Keep working the other side until you can meet in the middle, if not lower.

But you might say, "But the agent isn't willing to lose this deal, he'll just give in so he can get paid."

You may be right again. And only the reputation of the realtor will assure you that you're getting the best help possible.

Imagine the difficulty when the buyer's realtor has personal financial troubles and he realizes that losing your deal will cost him the money he needs immediately.

And now you've decided to avoid this dilemma and pay the agent out of your pocket. Here's the next issue.

The real estate system has been established so that the seller's agent has negotiated a fee with the seller. The seller's agent will share some part of his/her commission with the buyer's agent. Now, even if your agent tries to get the seller's agent to lower their fee, it's almost impossible to prove since the seller has a separate contract with the seller's agent and there is no way to truly ensure the seller's agent isn't keeping more than his fair share. Which would really mean that you could have bought the place for this 'new' lower price by resorting to the traditional way of not paying your agent, and relying on their negotiation techniques.

Do you understand? It's insane!!!

So just like government, and big business, and every other b.s. enterprise we live with, we can only go with trust. And despite the distrust many of us have against all manner of entities, each of us know there are still people that can't live with themselves when they don't do as promised.

You need the kind of person that sees an old lady struggling with bags, passes her, realizes that feeling in his stomach needs to be acted on, and goes back to help.

And unlike the bureaucracy of politics, it's very easy for an individual that believes in ethical obligations to service his/her client appropriately.

The challenge, you face, like all real estate buyers, is how to find that person.

Best of luck.
Seth Captain
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
Profile picture for sunnyview
Voila and a thumb to you! You can pay your buyers agent out of pocket. Most buyers choose to have the seller pay the commission and they still get represented reasonably well as long as they have an honest, professional agent to start with.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
You can choose to have your buyers agent reject compensation from the sellers side of the transaction and negotiate payment by you directly to your buyers agent.  In my opinion....... just get a good buyers agent with recommendations and go with the standard procedure.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
Profile picture for sunnyview
"MLS listing policy has always provided that the commission the seller agrees to pay at closing be split between the listing broker and the selling broker."

That may be MLS policy, but honestly your buyers agent does not care who pays them. If you want to agree as the buyer to pay your agent out of pocket the 2-3% buy side commission on the condition that they refuse the commission from the sellers side, I would think that you could do that. Money is money.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
MLS listing policy has always provided that the commission the seller agrees to pay at closing be split between the listing broker and the selling broker. Prior to the early 90's, both the selling broker (broker working with the buyer) and the listing broker had a fiduciary obligation to the seller. With the advent of "buyer agency", the broker working with the buyer was released from his obligations to the seller and free to represent the best interests of the buyer while still being entitled to the commission split paid at closing.  Under this new policy, buyers could now expect to be represented at no cost to them.

In Arizona and most other states, the only time that buyers will not receive full representation is when the buyer is working with an agent who is employed by the same brokerage firm that has the property listed. That scenario is known as disclosed dual agency which must be agreed to in advance and in writing by both parties. Since no man can serve two masters, neither party will receive full representation.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
Profile picture for sunnyview
You can opt to pay your buyers agent out of pocket. Offer them money and I bet they'll take it. There is no law that says that buyers cannot pay their agent directly. You can negotiate that as a buyer if it is important to you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2011
Related Questions
Is my agent and broker working for the seller instead of me?
Profile picture for hpvanc
Latest answer by hpvanc
46 minutes ago | 8 answers
Why such a discrepancy between Zillow Zestimate and the price it actually sells for?
Profile picture for Beverly  Fisher
Latest answer by Beverly Fisher
2 hours ago | 2 answers
Is First Texas Homes builder better over Highland Homes, Grand Homes, Landon Homes, American Legend?
Profile picture for user2140655
Latest answer by user2140655
3 hours ago | 23 answers
first time home buying.
Profile picture for Tony Ngai
Latest answer by Tony Ngai
4 hours ago | 1 answers
How to find a house with certain features ANYWHERE
Profile picture for wetdawgs
Latest answer by wetdawgs
5 hours ago | 1 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.