Special offer

The SELLER pays the commission - every time!

By
Real Estate Agent with Serving the Greater Phoenix and Scottsdale Metropolitan Area BR534744000 & BR540649000

I recently posed some questions regarding the age old difference of opinion as to who pays the commission - the Buyer or the Seller.

For your easy reference, here are links to the questions:

1. Is the total commission truly paid by the Seller, or is it paid by the Buyer because it's built into the sales price with the expectation that the Seller will pay the commission from the proceeds?

 

2. Who pays the commission if the proceeds to the Seller cover mortgage payoff and other items - but zero is left over to pay commission to the Listing Broker or the Buyer Broker?

 

3. Who REALLY pays the commission?

 

It became apparent by responses to the second question (above) that the real answer is - the Seller always pays the commission.

For those that claim the Buyer pays, while there may be no commission due unless a Buyer purchases and therefore the Seller sells, if there isn't enough money from the proceeds of the sale to cover all costs of closing, including commissions, then it's the Seller that's expected to come up with the $$ to cover commission from another source completely unrelated to the transaction.

That includes the Listing Broker portion AND the co-broke offered in the MLS to the Buyer Broker.

So how can one claim the Buyer ever pays the commission.

The Seller always does.

If the proceeds are sufficient to cover that expense, terrific!

Otherwise they either write a check or do a Short Sale (where their lender pays the commission).

Posted by

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with Haven Express @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Executive Officer - Haven Express @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - Haven Express @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
Haven Express
Keller Williams Arizona Realty

Comments(15)

Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

He has spoken.....the seller pays the commission every time!  End of conversation.....I guess.

Nov 15, 2015 10:53 PM
Tony and Suzanne Marriott, Associate Brokers

Roger D. Mucci You know I'm just trying to get the debate rumbling...don't you?  

Nov 15, 2015 10:57 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This is an important piece of information for buyers to know...thank you

Nov 15, 2015 10:53 PM
Robert Smith
Preview Properties, PC - http://www.RealEstateMich.com - Brighton, MI
SRES, Search for Homes Brighton-Howell-SE Michigan

Some buyers (and their agents) will always claim that since they are paying the price the commission is part of that figure.  They like to think that if the seller had gone fsbo the sale price would have been sale price - commission.

My belief is that the seller actually pays it (it comes out of their proceeds after all), but as Tony and Suzanne Marriott, Associate Brokers point out, there are times when a buyer kicks in or pays the entire commission as part of their agency agreement, too. Not common in my world.

Nov 15, 2015 11:26 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Roger  - thanks for stopping by and for your comment - very much appreciated!

Nov 16, 2015 01:44 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Richie - thanks for stopping by and for your comment - very much appreciated!

Nov 16, 2015 01:44 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Robert - thanks for stopping by and for your comment - very much appreciated!

Nov 16, 2015 01:44 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Tony and Suzanne - Boy you really are stirring the pot on this question. My biggest concern is helping my client, not who pays me, or how much I get.

Nov 16, 2015 02:39 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Troy Erickson Moi?! 

Nov 16, 2015 07:43 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

How about the FSBO sale where the buyer pays the commission to his Realtor?

Nov 16, 2015 08:10 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I have had a buyer pay and a selelr pay. If you stay in this business long enough you will see it all. It doesn't happen often but it happens. I have also had the buyer pay the whole thing by writing a check. And he was glad to do it because he got such a deal.

Nov 18, 2015 08:42 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Gabe Thanks for stopping by and for the comment!

Nov 25, 2015 10:19 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Debbie Thanks for stopping by and for the comment!

Nov 25, 2015 10:19 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Merry Christmas!

Dec 19, 2015 11:39 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Apr 24, 2016 12:04 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Apr 24, 2016 12:04 AM