Your Name:
Your Email Address:
To: (Email)
Email Preview:

Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Who Really Pays the Commission?
Every time I talk with a customer about Buyer Agency, they always ask "Am I going to have to pay the commission?" My short answer is, you already will be.
Who brings the money to the transaction when a house is purchased?  The buyer does.  Unbeknownst to the buyer, the seller has entered into a listing contract stating how much commission he is willing to pay for the sale of the home.  For our example, let's say 6%.  In that listing contract, the seller and listing agent agree to offer compensation to a cooperating agent (a buyer's agent).  Again, for our example, let's say it's 3% being offered to the cooperating agent.  So the buyer, without being consulted, has agreed to pay a 6% commission...because it is included in the purchase price.
Is the buyer paying any more for representation in this scenario?  Probably not.  But let's cover some other scenarios.
A buyer enters into a buyer representation agreement with an agent and agrees to pay 3%.  The buyer decides to purchase a property where the cooperating agent is being offered 2 ½%.  What happens to the other ½%?  There are several answers to that.  The buyer can ask the seller to ... more

Are you on The Rain? Grow Your Network!

Spam prevention