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FAQ VII: Can I Get a Better Deal if I Go Direct to the Listing Broker?
FAQ VII: Can I Get a Better Deal if I Go Direct to the Listing Broker?

 Short answer:  Maybe
 Long answer:  Maybe Not.  Here’s why:  A Seller hires a broker to market her home.  They pre-agree on what that marketing/brokerage fee will be.  Together, the seller and the broker determine a list price for the home based on current market values.  Let’s say that the house will go on the market at $200,000.  For the sake of doing easy math, let’s say the Seller negotiated a marketing/brokerage fee with the listing broker of 6%*.  In our market, it is customary for the co-op broker (i.e. the broker who brings the buyer) to receive 3% of the brokerage fee.  That leaves 3% for the listing broker.  The Seller gets a representative.  The buyer gets a representative.  Everyone is happy, right?
 But what happens when the buyer goes straight to the Listing broker?  Using the same formula as set forth above, it seems that (absent the co-op broker) the buyer could theoretically save 3% on the purchase of the home, right?  Well, no, not necessarily.  In all likelihood, if the listing broker is going to double-side the deal, the broker may or ... more

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