SENIOR LOAN OFFICER
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â€œIf you want something, go get it!! PERIOD.â€ â€“ Will Smith from the movie â€˜The Pursuit of Happynessâ€™
your voice. your trust.â„¢
If the Townhouse is NOT LISTED with a Broker and/or The Seller is NOT willing to pay the commission, then in some cases, the buyer is paying the commission. All these terms will be common knowledge at the closing table.
So if the townhouse meets your needs, you can find out from your broker if the seller is paying the commission. You have the right to ask.
If the seller is paying, then you should have a conversation with your broker to negotiate your own terms.
Lic Associate Real Estate Broker
The Fern Hamberger Team
Tom states these is 'NO NORMAL."
As buyers AND sellers have demanded more options in regards to how they want to sell their real estate, the industry has responded. The end result is more and more of the costs CAN be deferred to the buyer.
When a seller is faced with the situation Etieen creates, and some 'kick back' mortgage folks, that is, the funds the seller INTENDED to pay for professional services are given to the buyer....the seller can decide to NOT ALLOW THAT TO HAPPEN BY MAKING THE BUYER PAY THEIR AGENT. Along with the availability of more choices comes more complexity.
There is no normal. What a buyer can expect depends on the specific real estate they choose. A buyer can instruct their agent to show only real estate where the buyers agent compensation is fully paid by the seller. You will be surprised what can happen when YOUR agent is assured of their compensation.
I primarily represent sellers and I know how the seller responds when I advise the seller that the buyers agent is a rebater. Those who choose this option may find it as beneficial as having Wells Fargo as the lender for your unique home, seeking an FHA backed mortgage. The choices a buyer makes has consequences. Choose wisely.
Bottom line is that the buyer is always paying either directly or indirectly, as others have said. After all, its your money thats purchasing the property.
So I would simply say that you need to make your buying decision on your overall total costs to purchase. Commissions, closing costs, rehab costs, etc all go into the equation. So if you're paying 2 million for the building and all of those other costs add up to another 500K, does the total 2.5M cost still make it a deal worth moving forward with?
Commission are not always negotiable, it depends on the individual and what they believe is their worth. It's also your prerogative to decide if you feel the value is there just like any other professional service. The way to do that is check out reviews and/or speak with other brokers for comparison if your are unsure. If this is popular building you will need to move quickly due to low inventory. Good luck.
Most important in the answer is that all commissions whether sell side, or buyside are negotiable.
I often return 1/3 of my commission or 1% of purchase price to "good buyers" in the form of a realtor concession. This guarantees a lower purchase price.
The listing agent will disclose the total commission structure of a property. Many times if the property is quite large over 10MM commission on these properties shrinks.
Commission is often not explicit but included in price, and strictly paid by seller. Very few commercial deals are collect your own fee, or buyside commission
Please let me know if i can help you.
Licensed RE agent
347 834 0213
Spire RE Group
As you mentioned, "I just thought in commercial real estate like Mixed use buildings the seller pays his broker and the buyer pays his broker." You may very well be correct at least in relation to the deal you have in front of you but there is no one size fits all mold for any real estate deal.
I would think you have an Attorney. Ask his/her opinion also. I also suggest you review any documents you may have signed (if you have a copy) with the Broker. Your obligation may be in writing somewhere. Good luck.
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
Commission is usually paid by the seller, not the buyer. Depending on what the seller is willing to pay, it can vary anywhere from 3% to the full 6% of the selling price. If there are two or more agents involved, the 6% commission is split amongst the brokers (each would then get 3%). I work with a lot of building owners (in fact, my family consists of building owners) and have worked with buyers and sellers before. If you nee any further info, don't be a stranger and feel free to contact me.
Licensed Real Estate Salesperson
400 E 84 St
New York, NY 10028