What Fee Does The Buyer Owe Their Buyer Agent At Closing?

What Fee Does The Buyer Owe Their Buyer Agent  At Closing?

Start your Madison County Alabama Home search here: Madison County Alabama Homes For Sale and remember YOU DON'T PAY ME ANYTHING!

What Fee Does The Buyer Owe Their Buyer Agent  At Closing? This question comes up occasionally, usually it's toward or around the closing date and I'm almost always surprised by it...almost.  Mostly because I do a pretty good job of explaining the process and going over all the documents that need to be signed in detail in advance.  One of those documents that a buyer signs is called an Exclusive Buyer Agency Agreement that describes and lists my scope of service, period of agreement, brokerage fees, disclosures, etc.  Did I just say Brokerage Fees...yes I did.  But, before I go any further let me say that I never have and do not plan to ever collect a brokerage fee from my buyer clients. 

The Exclusive Buyer Agency Agreement in Alabama provides for the payment of a retainer fee by the buyer to the Brokerage they are working with and the details of how or for what the retainer fee is to be used stated in the "Provisions" area.  This is only if Broker and buyer decide to work together in this manner. 

Sometimes a retainer is deposited with the Brokerage when a client is searching for rental property and ultimately it usually is used as payment when a property is located and a contract executed for the client.  Another scenario could be that the buyer will pay his agent an agreed commission to find a suitable home in lieu of the seller paying.  However, and again I do not collect a retainer fee and I do not expect my buyer client to pay my commission.  What we do see as common practice is the seller listing a home on the MLS paying or offering compensation through the MLS to the buyer agent or brokerage bringing a ready, willing and able buyer to the closing table.  The Seller usually pays the brokerage fees. 

I will be closing on a condo tomorrow (Thursday).  Yesterday I called my client to go over what to expect on closing day and all was good until he asked; "What are your fees...what do I owe you?"  Without a moments hesitation I said; you are bringing $15,000 to the closing table as your down payment then you have to write me a check for an equal amount of $15,000....silence!  

I really like this gentleman so I didn't prolong it...."Just kidding a kidder...you don't owe or pay me anything".   It's the responsibility of the seller to pay my fees.  All was again right with the world, but it did teach me a lesson that maybe I wasn't doing as good of a job as I once thought about explaining the contracts my clients are signing and that will be corrected.

So What fee Does the Buyer Owe Their Buyer Agent At Closing?  If you are my buyer client you don't pay me anything!

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