2,061,615
Your premise is bass-ackwards.
1) the seller pays the commission. Doesn't matter where the money originated, when the commission is paid, the money belongs to the seller, therefore the seller pays.
2) IF your premise were correct (which it's not, just in case you didn't read #1) there is no way for the listing agent to negotiate with the buyer, since at the time of listing we don't know, yet, who the buyer is.
-
Margaret Goss
Winnetka, IL
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Brian L. Sirota, Esq.
Orange, CA
-
Kris Collis, Associate...
East Stroudsburg, PA
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Lyn Sims
Schaumburg, IL
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Lynnea Miller
Bend, OR
-
Nina Hollander, Broker
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
1,052,186
I think where the disconnect happens is in making the distinction between cooperation, compensation and representation.
THEY ARE ALL SEPARATE.
I can represent you without being paid.
I can pay someone who doesn't represent me.
I can accept payment from someone I do not represent
AND STILL
represent my client to the fullest.
Also, I remember that conversation, and maybe 1-2 folks agreed that buyer is the one paying. Many did NOT. MOST did not.
I gotta good memory - I can even tell you who did agree. I think 2 peeps.
Also and this is the key - seller pays THEIR BROKER.
THE BROKER CHOOSES to SHARE THEIR FEE.
They choose to. They want to. It's good for them, good for their client.
If you're dealing with sellers who simply want to short you, you can choose not to work with them. You can choose to pay a dollar. You can choose to make your deal in any one of a gazongagillion ways.
It's real estate - no need to overthink it. Just make happy deals!
Works for me!
-
Evelyn M Epperson
Johns Creek, GA
-
Kat Palmiotti
Kalispell, MT
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kris Collis, Associate...
East Stroudsburg, PA
-
Brian L. Sirota, Esq.
Orange, CA
-
Alan May
Evanston, IL
-
Lyn Sims
Schaumburg, IL
-
Anthony Acosta - ALLAT...
Atlanta, GA
5,104,931
I do not understand the question. Seller pays the commission as part of their listing agreement with their agent toi get the home sold. Listing agent offers a portion of that commission to the selling agent (i.e., buyer's agent) to bring a bona fide buyer to the table.
Buyer agents also typically negotiate a commission with their client in the event that they are not paid by the listing agent's brokerage.
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Lyn Sims
Schaumburg, IL
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Jeff Dowler, CRS
Carlsbad, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Lynnea Miller
Bend, OR
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Jeff Pearl
Lovettsville, VA
-
Richard Weeks
Dallas, TX
1,196,688
Because the Seller is paying the commission fees
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Jeff Dowler, CRS
Carlsbad, CA
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Lynnea Miller
Bend, OR
-
Richard Weeks
Dallas, TX
-
Nina Hollander, Broker
Charlotte, NC
-
Doug Dawes
Topsfield, MA
1,390,113
Commission comes from the seller, not the buyer.
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Brian L. Sirota, Esq.
Orange, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Lynnea Miller
Bend, OR
-
John Juarez
Fremont, CA
-
Nina Hollander, Broker
Charlotte, NC
2,436,099
The buyer pays the seller for the house. Since the commission typically comes from the sale price, the money the buyer pays for the house covers both agents commissions. So really, both the buyer and seller are "paying" for the commission. One pays through a 30 year mortgage and one pays from their sale proceeds. The one that feels it more is the seller since they actually see the money leaving them. Therefore, they get to choose how much they want to disappear and where it goes.
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kris Collis, Associate...
East Stroudsburg, PA
-
Brian L. Sirota, Esq.
Orange, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
John Juarez
Fremont, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Doug Dawes
Topsfield, MA
5,583,278
the buyer pays a price with or without a commission....the only thing that buyer is negotiating is a price not the commission.... the buyer's fee is stated in MLS....period.
the seller pays the listing office.... the listing office pays their agent and cuts a check for the buyer agent's office as provided in MLS....
the buyer agents can negotiate a fee with their buyer....not the homeowner....
the listing agent has been given the authority by his/her broker/owner to be a representative of that listing office and negotiate a fee with the homeowner....
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Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kris Collis, Associate...
East Stroudsburg, PA
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Nina Hollander, Broker
Charlotte, NC
6,392,929
The seller pays the commission, the buyer is only interested in buying a property.
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Lynnea Miller
Bend, OR
-
Nina Hollander, Broker
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Bob Crane
Stevens Point, WI
1,311,377
I do not agree that it is the buyer who pays the commission. The buyer is buying a house.
When you buy a new car, do you fuss about the commission paid to the salesman?
When you buy groceries, do you complain about mark-up added by the grocery store?
Yes, commission is a large part of the normal real estate transaction. The system is efficiant and works well. Attempts to change have not been successful.
We shall see what the future brings.
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kris Collis, Associate...
East Stroudsburg, PA
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
1,197,052
Whoops , some one has it backwards.
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Nina Hollander, Broker
Charlotte, NC
4,882,355
Typically a buyer only pays his agents commission. Also the sellers agent would not be in contact with another agents client.
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Doug Dawes
Topsfield, MA
3,344,906
Facts vs Fiction
Fact: When the commission is paid it comes from the seller.
Fiction: Some people/buyers believe they pay the commission because they also believe the commission is included in the price of the home.
Is it? I do not see any offsets by appraisers for commissions.
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John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Brian L. Sirota, Esq.
Orange, CA
-
Lyn Sims
Schaumburg, IL
711,752
Commissions are typically paid out of the seller's proceeds, unless the buyer has a buyer's service agreement in which the buyer directly pays the buyer's agent commission. The listing agent negotiates the commission with the seller and the co-op commission to the buyer's agent is noted in each MLS listing. In our purchase agreements, the commission paid is not noted at all.
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John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
5,229,589
The SELLER signs the listing agreement, agreeing to pay the COMMISSION to the listing BROKER.
THE LISTING BROKER then either agrees to share the commission they are paid...or NOT.
If the listing broker DOESN'T share, then the buyer pays the buyers broker.
You can look at it that ultimately, the buyer pays all fees - they are the ones writing the check in the end, agreeing to all terms the sellers and their broker set forth regarding commissions.
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John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
John Pusa
Glendale, CA
-
Bob Crane
Stevens Point, WI
-
Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Michael Jacobs
Pasadena, CA
1,622,432
Good question.
I just went through Agency course for my license renewal and they talk in details about it. Even commissions are coming from a buyer payment, it is technically the seller's proceeds that he/she agrees to pay for the work to be done.
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
HOMEiZ.COM Real Estate...
Agoura Hills, CA
1,543,613
Commissions are non-negotiable between buyer & seller. They are negotiable between client and broker.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
1,844,271
So you are still stuck on that one huh?
Who has the contract to pay anybody?
If the buyer can pay his agent, the sellers agent just takes their fee. In the listing agreement in our area, it is stated pretty clearly how much & to whom.
If the buyer doesn't have any money, who is going to pay your commission?
Does the buyer pay your commission out of his mortgage proceeds?
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
1,502,998
Because the seller pays it to the listing agent with the money brought in by the buyer. The listing agent splits it with the buyer's agent. It's really not that complicated.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
716,049
I think you got things a bit confused.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
2,220,323
Nina Hollander has your answer.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Nina Hollander, Broker
Charlotte, NC
2,781,123
The seller has the gold and they rule. You can slice it anyway you want
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Michael Jacobs
Pasadena, CA
-
John Juarez
Fremont, CA
3,416,038
Technically the buyer pays the sales price and the seller pays the commission to the listing agent from that total sales price received. The listing agent then pays the buyer agent the fee advertised in MLS. The buyer agent can state up front they refuse any agency fee from the listing agent and can negotiate their own fee from their buyer. They can also ask the seller to ay their buyer agent fee.
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
7,835,329
Traditional industry practices.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
3,125,406
Seller agrees to pay the commission when signing documents and listing property for sale. FSBO who cooperates with a buyer agent also pays. Buyer is responsible to pay agent if they find something on their own (FSBO, for example while under contract.
-
John Pusa
Glendale, CA
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
469,510
The answer is simple the current system works fine took decades to develop and has arrived where it is at. It may change at some point but right now with how the marriage between the lending industry and the real estate industry work together - the types of changes you are eluding to would be destructive to the real estate industry and prevent 100's of thousands of buyers from getting into homes. That is my opinion and I will fight to protect our industry and home ownership for as many as possible from those that wish to destroy it.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
5,772,575
Nina Hollander has you covered. A
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
5,216,359
The seller offers a commission as part of the purchase price to get their net proceeds. The buyer pays a price to make that happen. If a buyer had to pay the commission out of pocket, many transactions would never take place.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
John Juarez
Fremont, CA
2,390,390
Because that's the way it is HOMEiZ.COM Real Estate Technology
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
John Pusa
Glendale, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
4,571,967
And next month we can discuss the pronunciation of tomato.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
John Pusa
Glendale, CA
-
Candice A. Donofrio
Fort Mohave, AZ
4,160,276
HOMEiZ Real estate technology many good quality responses already.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
900,118
It is a very distorted concept indeed. It is often believed that in the end the buyer pays since the seller grosses up to adjust for it, making it seem as though the seller pays. I think the seller should only pay his side and the buyers should pay their agent for finding them a place, kind of the way renters do in some cities.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
2,182,502
Both Agents must have an Employment Contract with a Consumer. The Listing Agent is asking for a fee amount that would allow them to compensate a Buyer Agent if necessary .
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
1,239,801
A few niche CA market the listing agent is the king. Want a certain type of business everyone goes through him. Realtors do not get compensated for referraling and must seek through buyers. Same with auctions sites where buyers must pay 5% hammer fee to get a distressed properties.
Most countries the buyer pays a smaller commission to the buyer agent and sellers only pay to the listing agent. There is no coop fee other than listing agent agrees to work with buyer side.
This also serves as a wake up call that buyer agent days are numbered. Technology allows anyone who has a device, computer to find his or her properties since all information except door Supra key are available to home seekers.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Kris Collis, Associate...
East Stroudsburg, PA
556,536
Here we go again! The system is driven backwards by arcane lending regulations where a buyer can borrow closing costs if they put money in the lenders pocket (points) but not if the closing costs are for a buyer agent commission.
Apparently, nar doesn't know how to lobby for us.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
John Juarez
Fremont, CA
921,504
What do you think happens when a seller instructs their agent to place their house for sale in the MLS with a published buyer agent compensation of $1. (one whole dollar)
The reality is compensation on both sides (is/can be) currently negotiated.
NAR, local associations and brokers have made real estate a sport for the non-thinking. Maybe change is overdue.
And I agree, your question needs better editing.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
1,598,452
What????????????
Listing agent may not do it.
Nobody can change the commissions posted on MLS.
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
57,072
I want to thank all of you who participated in my question. Wishing you all a beautiful day.
Thank you!
-
Wanda Kubat-Nerdin - W...
St. George, UT
162,739
The seller pays a fee to the firm that represents them, the selling firm then offers a commission to the firm that brings them a buyer & successfully closes....as everything is negotiable; once a commisiion or amount has been negotiated during the listing process- the seller should be made aware how that percentage or amount is being paid to the selling firm & what amount is being offered to the buyers firm. This method & process has worked for decades, on the rarity a buyer is paying a commission direct to buyers firm- then seller should be notified, imo-
5,868,472
4,935,567