All commission is negotiable. Even if you are a buyer. The typical is 6 % 3% for the selling agent and 3% for the buyers agent. But that is not always the case.
With the way the market has slowed down some there are special incentives that sellers are offering to buyers, and buyers agents. For example: Trips, buyer bonuses, even cars. If an agent is getting something other then a typical commission 3-4% or any bonuses, this needs to be disclosed to the buyer.
The buyer needs to be aware that there are special bonuses that the agent is getting. A good agent will also explain any bonuses that they are getting.

So what it boils down to is if you sign the mls buyers agreement and you say yes to a 3% commission that you will pay. If your agent showes you a property like new construction and they only offer 1.5% commission then the agent could ask you to pay the diffrence. So it is good to say on the agreement that the agent will only get what the seller is offering you and you are not responsible for anything else.

Wed May 7 2008, 21:29

We charge $1995 and rebate the rest of the commission back to our customers. If they need more than 3 showings we reduce the rebate that they receive by another $1995 and give them unlimited showings and offers.
In general the 3% is a standard practice by most realtors.

Sat May 3 2008, 20:18

The "Buyers Agency Agreement" is a confusing form, and I never use it when I already know that the seller is paying the commission. When a seller places a home for sale on the multiple listing service, that commission is protected for the selling agent. Perhaps if you ask your Realtor this question, your concerns will be cleared up. We're always happy for ONE commission, and don't expect two!! Hope this helps.

Thu May 1 2008, 14:22

Hi Cq -
3% is generally what I charge my buyers unless there are some special circumstances. Commission is absolutely negotiable. I am always willing to talk to buyers and sellers to see what their situation is.

Your buyers agency agreement should also have other terms like length and scope - make sure to look at each one of these to be sure that they apply to your specific situation.

Good luck!

Wed Apr 30 2008, 19:38

Cq, If there is anything on the agreement you are not comfortable with, feel free to have a conversation with your agent about it. The comission is typical and is payed for by the seller for most properties. The agreement for buyers usually stipulates that if you find a home where the seller is not represented, such as a FSBO, and the seller has not agreed to pay a buyers agent a comission, that the buyer is then required to pay the comission. But your agent should also negotiate with the seller to try to get them to pay it first.
Personally I have never used a buyers agreement for this reason. I think it scares clients and raisies concerns just like this.

Wed Apr 30 2008, 10:38

Everything is negotialble!

Wed Apr 23 2008, 08:06

Agency may vary state to state. In MN the rate is somewhat lower but remember you can negotiate this %. Also most consumers and real estate agents do not realize that if you purchase one of this brokers listings then say if they have a 8% commission that was to be split between buyers and sellers agents you would only have the 3%. Thus this contract should have "up to 8%" or whatever the top % rate is in your area.

Wed Apr 23 2008, 08:05

Generally speaking, 3% would be the highest negotiation between a buyer and an agent. If the seller offers more than 3%, then you would get a cedit for the difference.

You need to ask what happens if the house you pick is offering less than 3%.

As to "standard practice", all commission are negotiable and there is not supposed to be a "standard" fee. It depends on the sale price. At $250,000, 3% is reasonable IMO. At $900,000 it is not. Look at the dollars and "sense" and not just the percentage.

Wed Apr 23 2008, 08:00

In Colorado, I see you are in Seattle, we have a flat 2.8% commission on the Buyer's end. This is paid by the seller in the listing commission. A builder or for incentive a seller will offer a higher commission if they want more showings by Realtor's.

Tue Apr 22 2008, 12:52

Typically, the commission (which is usually 6% divided between Buyer and Seller's agents) is paid at closing by the Seller. Therefore, the commissions are reflected in the purchase price. There is generally no out-of-pocket expense for the Buyer in terms of his/her agent's commission. I am not sure that there is a distinction between "acquisition price" and "purchase price," though the responsibility is with the Seller regardless. It is important to note, however, that this is, in a certain sense, a technicality, given that the commission is factored into the price. Even though the Buyer's agent's commissioin (Selling Office Commission) is subsequently deducted from the Seller's proceeds, it could be argued that it is, in a sense, a premium paid by the Buyer. Either way, it is considered to be part of the purchase price, as opposed to Title and Escrow fees and loan origination fees, which are tacked on at closing.

I hope that helps...

Tue Apr 22 2008, 11:41

Hi Cq,

Assuming that the acquisition price and the purchase price are the same thing then, yes, 3% of the purchase price is the industry standard paid by the seller for low to upper mid priced homes in Seattle. However there are some exceptions especially if you are looking at homes outside of the Seattle area where commissions ranging around 2.5% are more common.

If the agent is using the Northwest MLS Buyer Agency Form 41A, there is no reference to "acquisition price" in that document. It refers only to the commission which is based on the sale price (puchase price). Depending on what the agent writes in to that document would indicate if, and what amount, the buyer would be liable to pay buyer agent if the seller was not paying a full 3% commission to the buyer agent.

If the agent is using a document other than the form 41A, I would need to know more specifics on the phrasing.

Tue Apr 22 2008, 11:33

There are many different buyer agency agreements out there.
I am assuming that you have been given one of the pre-printed forms from the NWMLS or a specific company form.
Odds are it is the form 41A, In which case the buyer is agreeing to pay the broker/buyers agent 3% of the sales price on the home that they purchase.
Typically the listing agent has an agreement with the seller to split their 6% commission with any co-broker/ or buyers agent, thereby, according to the contract, eliminating the commission due from the buyer. In that type of contract the buyer may have to pay an amount if the listed buyers’ agent commission is less than 3% or if your agent finds a FSBO and the seller doesn't agree to pay the commission. I hope this helps.
You should also be given Law of Real Estate Agency Pamphlet (Rev. 1/98) which will describe in detail the different types of agency in relationship to you as a buyer.

Tue Apr 22 2008, 11:23

Cq,

Buyers rarely will actually pay any commission to a broker. However that being said there is still a chance that you may have to pay something when you do sign a buyers agency agreement. The commission is usually paid by the seller at closing. However if the seller were only to pay 2.5% or 2% then you would have to pay that difference at closing.

In other words if the Sales office commission was 2.5% and you greed to the standard 3%, you would be liable to pay your agent the difference of 0.5%. I personally have never seen a Buyers Agency agreement that cost an additional percentage on top of what they are getting from the Sellers.

Hope this clarifies things better for you. Best wishes in your housing search.

Tue Apr 22 2008, 11:18

There are numerous Buyer's Agency Agreements that are being used in the NWMLS. I don't know which one you're looking at but they all have a clause that states any commission paid by seller will be credited to the buyer's commission obligation. Generally, this means that buyers rarely pay any commission at all. A 3% selling office commission is reasonable in this market. You can instruct your agent to request that the seller pay this full amount in those instances that the published MLS commission rate is less than 3% and most sellers would be happy to do it. There are not two separate commission fees. The agreement you're looking at may simply be restating the one fee in two different ways for clarity.

Tue Apr 22 2008, 11:14

Some agents are now using Buyers Agency Agreement to talk to buyers about how we as agents get paid. If your agent is bringing this up with you it could be because he/she is wanting to make sure they get the full buyer's commission. This may be because you have brought up working with other agents, you could have asked them about for sale by owners, etc. If agents are going to work with you and spend their time to show you homes, they want to make sure that the end result of that is they get paid for their efforts.

Some agents regardless of who they work with require that this agreement be signed. Three percent of the sales price of the home is the usual commission that the buyer's agent receives as a part of the sale.

Tue Apr 22 2008, 11:13

I think from a buyers perspective on an agency agreement it is very important to read the detail in regard to this matter. If for example you were buying a FSBO you would as the buyer be paying the commission of your Realtor..typically 3% However, if you are doing a standard MLS property you would be paying zero dollars as a buyer for the commission as the seller is paying the cooperative brokers commission.
When you agree to a buyers agency agreement make sure that you are comfortable with the terms and ask your Realtor to explain all the facts.
Good Luck

Tue Apr 22 2008, 11:13

In our market (Georgia) the Seller pays the Commission, not the Buyer. The only time a Buyer would pay would be if they purchased a For Sale By Owner and the agent found it for the Buyer. Hope this helps.

Tue Apr 22 2008, 10:55