Typically a buyer does not pay commission to the buyer's agent; the seller, through an agreement with the listing agent, decides on a commission rate of the sales price, say 6%. Out of that 6% the buyer's agent and listing agent each receive 3%. In effect the buyer's agent is free of charge to a prospective buyer.
Realtor & Marine Corps Veteran
Coastal Premier Properties
It's a great time to buy. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states and you can apply online at http://www.myccmtg.com.
We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (630) 639-1081.
Sr. Loan Officer
Crosscountry Mortgage Inc.
Phone: (630) 639-1081
Commissions are 'typically' paid for by the seller to their selling agent, and they authorize their agent to offer a portion of that commission to a buyer's agent.
There are some circumstances where a buyer may pay for professional representation. For example, a buyer finds a home that is not listed by an agent but by the homeowner and the buyer wants to be properly represented. In this case the buyer could hire an agent.
Hope this helps.
Kindred Real Estate
CA BRE# 01402946
If the property was found by you, not on the Multiple Listing Service (MLS) but, you would like to have your best interests protected for this home purchase, you can talk to an Realtor about what they would charge as a "flat fee" to assist you with everything from documents, inspections, repairs, mortgage qualification,etc...all the way to closing escrow.
Just let the Realtor you talk to know what services you are requesting and how they can assist you with the transaction..
You can also hire a Real Estate Attorney for a flat fee as well to review (or even re-word the documents) and negotiate on your behalf. Our broker, Spencer Lugash, is a Real Estate Attorney, which comes in handy sometimes with tricky " legalese" !
However, if you need "in the field/onlocation" assistance, it will be less expensive (most likely) to hire a Realtor instead of a RE Attorney to carry you through to close of escrow.
If the property is on the MLS, the Seller and Seller Agent have already agreed in writing to the Buyer's Agent compensation for assisting the Buyer, which the other Realtors had already mentioned to you.
Hope this helps!
Robin P Fournier,ABR
Big Block Realty - San Diego,CA.
You don't pay the agent a commission. However, if you sign a buyer-broker agreement, there could be exceptions (which really hardly ever, ever, do they happen). Therefore I recommend you understand the document before you sign it.
But don't let this deter you from signing the agreement, because what it does essentially is protect you and the agent. It just shows that you have an agency relationship, and that for the term of the agreement, the agent will be working for you, looking at houses, scheduling viewings etc... In return, you will be working only with this agent. So if you don't want him or her to work for you anymore, you must let them know. It's just common sense.
Good luck in your home hunt!
Let me know if you want agent referrals for San Diego!
YOUR AGENT will be given 1/2 of the Selling Agent's Commission. You don't have to pay them from your pocket.
YOUR AGENT will want you to sign a Buyer Agency Agreement. It will usually say that you agree to pay them about 3-percent. BUT, this is only if the Seller Won't Pay. AND,..... THE SELLER ALWAYS PAYS--- because they want you to buy the house.
As Agents we know the seller will pay because the have hired an agent for themselves. And they already agreed to pay their agent. And their agent promises to pay YOUR AGENT-- that's part of the Multiple Listing Service requirement. They MUST pay the agent.
IF THIS ANSWERED YOUR QUESTION: PLEASE GIVE ME A "THUMBS UP!" or "BEST ANSWER!"
What is your question? If you need assistance buying in 4S Ranch, let me know.
McAllister Homes Real Estate
So if a seller hired a listing broker to sell their home for a 6% commission the listing broker can agree to split the 6% commission with the real estate agent representing the buyer. Sometimes the split is in half, sometimes it can be more or less. It depends how the hired Realtor wants to do the split or how much of a commission he took in the first place.
A lot of buyers don't realize that they can have their own representation when buying new construction. In most cases the builder offers a commission or referral fee to the agent that registers the buyer. The key with new construction though is the Realtor must be there on your very first visit or the builder will not allow them to represent you and get paid. If you bring a Realtor to register you make sure they are willing to go through all the important steps with you. (i.e. contract signing, design center, loan meetings, walk through, home inspection etc.) I always want to be there for my client to protect and advise them properly to the best of my knowledge.
In some cases if a buyer wants to buy a FSBO (For Sale By Owner) and the seller does not want to pay a Realtor whatsoever the buyer can choose to hire a Realtor and work out a commission with them. For example; I had a client that wanted to buy a house from an acquaintance. The seller refused to pay an agent and really wanted nothing to do with one. My client had worked with me in the past and wanted my representation to protect her regarding contracts, escrow, proper disclosures, contract time frames, and all her rights. We worked out a deal (commission is negotiable) so I would only represent her.
When hiring a Realtor to represent you in your purchase you should interview a few agents first. It's not only about finding a house. That's only the beginning. Someone that is full time, well educated in the area, very knowledgeable about contracts, buying "as is" , and contingency time frames is important as well. I recently had a client call me from Sacramento asking me to help her get her deposit back because her local agent (a friend) let her remove all her contingencies and then she couldn't get a loan. She was told she would loose her deposit. Luckily I was able to help her get her $10,000 back but I know many times consumers get ill advised and loose their money.
When a buyer goes directly to the seller's Realtor that is exactly what you're getting.... the seller's Realtor, Yes, they have a fiduciary duty to you but they also have a relationship already established with the seller's. I hate representing both sides because I love fighting and protecting to the best of my ability for my client. If I represent both sides I can only advise both buyer and seller and it's between them.
In any case in this market you should have an experienced Realtor working with you throughout the home buying process. The seller in most cases pays the commission so there is no reason not to. Some will argue you pay for it in the price but I offer this. The market keeps that in mind, that's why there is appraisals to make sure you don't over pay. Also if you have your own Realtor they can possibly negotiate the house down in price more than a seller or seller's Realtor would for you. We are in a very challenging market right now and chances are you need someone on YOUR side.