Financing in 77059>Question Details

unicorn60.b, Home Seller in Marysville, WA

sold a home to buyers with a VA loan, is it standard for the seller to pay the commission to the buyers agent

Asked by unicorn60.b, Marysville, WA Sat Oct 19, 2013

0 votes Share Flag Financing in 77059

Help the community by answering this question:


If your home was listing with a licensed agent you need to read your listing agreement. If your house was so listed, I cannot fathom that you would not have been made to understand that you, the seller, are responsible for the commission reflected on the listing agreement. The listing agent will typically pay a portion of that commission to the buyer’s agent. There are exceptions but they are rare.

If you sold the property without the benefit of an agent but the buyer was represented by an agent, then the VA rules are in place to allow the buyer to buy with the lowest possible cost. That is the whole point of the VA program. Under this program, the seller is responsible for costs that may be the seller’s responsibility under a cash, conventional or FHA purchase.
0 votes Thank Flag Link Sun Oct 20, 2013
You need to review your listing agreement with your Realtor and see how that is addressed in your area. If you don't have an agent assisting you and your selling on your own, it would have been addressed in the purchase agreement.

In the Houston area, sellers will typically pay their listing agent at closing per their listing agreements. Listing agents typically offer compensation to buyer's agent bringing buyers to their homes via our MLS system. If they close, the listing agent will share some of their commission with that buyers agent. The amount can very.

Not sure about the rules in regards to what a buyer can pay towards their own agent in regards to VA, FHA or other loans. Would suggest going to and see if there is more information about this topic. You can always speak to a real estate attorney and have them review your documents.

Nothing is "standard" and everything is negotiable so be very clear BEFORE you sign anything. A good Realtor will explain all the fees involved, regardless if they represent a buyer or seller. Good luck with your closing.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
0 votes Thank Flag Link Sat Oct 19, 2013
(1) It's customary for the seller's agent to pay the buyer's agent"s commission.

(2) Buyers under a VA mortgage are not permitted to pay their agent's commission.

Either way, it's on the seller.
0 votes Thank Flag Link Sat Oct 19, 2013
Depending on your Listing Agreement YOU do not pay the Buyers Agent...Your Listing Agent/Broker pays them. It all depends on what is spelled out on the Listing Agreement you signed with your Agent. It states the terms of the agreement on Page 2 Section 5 of the TAR Listing Agreement that amount you are to pay your agent. Page 4 Section 8 spells out the Cooperation with other Brokers and how much your Broker agrees to pay them. It is also stipulated on the contract on page 9 under Broker Information.

Patricia Fleming
Patricia Fleming Realty Group At
Realty Associates
0 votes Thank Flag Link Sat Oct 19, 2013
Yes, veterans, using a VA loan to purchase a house, cannot pay real estate commissions.
0 votes Thank Flag Link Sat Oct 19, 2013
As Alison said, yes. I always liken it to when you go buy a car, you don't pay the salesman's commission, the owner does. You are the owner so...
0 votes Thank Flag Link Sat Oct 19, 2013
Short answer - yes, it is standard for seller to pay agent commissions.

All commission is negotiable, however the industry standard is for the seller to pay a 6% commission to the selling broker. The broker then typically splits their commission with the buyer's agent, so each side of the transaction gets 3%.

Alison Loughlin
Mission Real Estate Group
0 votes Thank Flag Link Sat Oct 19, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Harris County > Houston > 77059 > Financing in 77059 > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer