Commission when buying a home

Real Estate Agent with The Real Estate Bundle

I've had some interesting conversions with some clients over the past couple of weeks and some people are under the impression when they are buying a home they need to pay a commission to the agent that is helping them. That is not true. The selling commission is paid by the person/s that are selling the home or property. That is called the "Selling Commission".  That is normally a percentage of the selling price of the home and is negotiated when the home is listed with their real estate agent.

I know sometimes all this real estate stuff gets confusing, which is where your real estate professional (me) can help you.  Please feel free to contact me with any questions you might have.


Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
Not to be difficult, Karl, but the buyer IS paying the commission-it's built into whatever the seller agreed to with the listing agent (that is, if it's offering a co-broke to buyer agents).  In today's environment of growing transparency, it's wise to explain to our buyers just how everything works.  And then, when you have an educated consumer, who understands what you bring to the table, you don't even have a problem when the buyer wants to go after a FSBO and your agreed commission on your buyer agency agreement gets added on. =)
Jan 24, 2007 11:31 AM
Bob Sloop, Consultant, Indianapolis, IN
RS Mortgage Consulting - Indianapolis, IN
Good points both from your side Carl, and Leigh's, Leigh just got technical to the max, I have to in all honesty agree with Leigh, but I am not so sure the buyer would agree in most cases, till they actually sit down and think it over, and put two plus two together.  Take care, good post.
Jan 24, 2007 11:57 AM
Karl Snyder
The Real Estate Bundle - Lake Stevens, WA

Hey Leigh and Bob thanks for the reponses. And yes technically you are correct Leigh. It's just that buyer doesn't pay a commission directly to their agent. It is listed as a closing cost on the sellers side. I do agree with you about educating the consumer and you make a very good point regarding FSBO's.



Jan 24, 2007 12:17 PM
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City
This is an issue that separates residential realtors from commercial realtors. On the comercial side it is more customary for commissions not to be split. Residential realtors need to think about CLIENT reresentation mor seriously.
Jan 24, 2007 12:33 PM