Home Buying in North Park>Question Details

Jay, Home Buyer in 12866

I plan to buy in San Diego, I'm from NY; what is a normal commission percentage paid? Does the seller normally pay the whole commission? Thanks

Asked by Jay, 12866 Fri Feb 5, 2010

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29
HI Jay,
In answer to your question, does the seller normally or usually pay it?
Yes

Harold Sharpe
So Cal Homes Realty
(951) 821-8211

http://www.southern-california-home.com
1 vote Thank Flag Link Fri Feb 5, 2010
Dear Jay,

The seller pays the commission to the buyer's agent in most cases. Properties listed on the Multiple Listing System will show the compensation a listing broker offers to the buyer's agent. If the property is offered directly by a seller, like in the case of For Sale by Owners, the buyer will pay the buyer's agent commission unless a compensation agreement is negotiated with the seller to pay for it. Great time to buy in San Diego
Let me know if you need any help.


Mike Aqrawi
619.961.9909
1(619).618.4512 Fax
Mike.aqrawi@gmail.com
Tidal Realty
CA BRE: 01930877
0 votes Thank Flag Link Mon May 12, 2014
Jay,
There is no such thing as a normal commission percentage as the commission is always negotiable.
0 votes Thank Flag Link Sun May 11, 2014
Old post, but wanted to add to this by saying that seller normally pays the whole commission, but as a buyer, you can negotiate a portion of this commission as a rebate back to you at closing. We wrote a great blog article that explains how to do this. Check it out --> http://www.trulia.com/blog/upnest/2014/04/how_to_negotiate_a…
0 votes Thank Flag Link Fri Apr 25, 2014
seriously? dredging up a 4 yr old question, and then stomping all over the anti trust laws by answering it with a specific number! ....ALL commissions are negotiable.....that's the correct answer to a question of this type....legally.......there are no "typical, expected, common, usual or standard" commissions. Period, end of story.
0 votes Thank Flag Link Fri Feb 14, 2014
Yes the seller pays the entire commission and it is typically 2.5-3%. Please do not hesitate to contact me with any questions.
0 votes Thank Flag Link Fri Feb 14, 2014
Hi Jay,
I am originally from New York and now live in San Diego and Fort Lauderdale. I am a Broker in Florida and California and was a broker years ago in New York.
I know that in New York if you are doing a rental the buyer pays the fee to the Realtor but if you are purchasing a house the seller usually pays the commission on the house sale.

In every State we can never discuss what a seller normally pays us but yes, the Seller does pay the Realtor an agreed upon fee when a listing on their home is taken. There is not a standard commission rate. A Realtor does not get paid until they bring a buyer who is ready, willing and able to purchase that home at the agreed price..

I hope you find your perfect home in North Park. If you need help, please feel free to call me with any questions.

Trudi Geniale
Broker
Buycoastalrealtyllc.com
619-578-1100
0 votes Thank Flag Link Mon Mar 11, 2013
Hi Jay, yes the seller pays the commission. The percentage ranges from 4-6% and typically in San Diego County the percentage is either 5 or 6%, rarely do we see 4%. Most buyer's agents will also request the seller to pay closing costs. I am a native of San Diego who has never been to New York except for layovers on route to foreign countries. Good Luck
0 votes Thank Flag Link Thu Jun 28, 2012
21 ANSWERS? Good grief. ...well here's#22! :)

a) Congrats. You'll love it here and won't miss shoveling snow. (Funny but true story: my wife and I sat for 10 minutes staring at the ice scraper we found in the back of our rental car before we figured out what it was - and we consider ourselves fairly educated.)

b) 5-6%. But you shouldn't care because,

c) The Seller normally pays it!

Let me know when you get into town and we'll grab some Pizza.

Cheers,
Paul
0 votes Thank Flag Link Wed Mar 31, 2010
HI Jay, You should have your answer by now but might not have an agent. If not, I would be happy to work with you to find the right property.

Steven Sansone
Willis Allen Real Estate
Rancho Santa Fe, CA 92067
steven.sansone@gmail.com
0 votes Thank Flag Link Tue Mar 30, 2010
I wouldn't focus to much on what the commission is. More on the value and condition of the home.
A good buyers agent will save you a lot of money.

I have vacant land that you can build a new home in 6252 East Lake Drive, San Diego CA 92119. Land Cost 185K, Home Cost around 235K – 250K to build
Nice area located in San Carlos. Upsize to a 4 bedroom home, or downsize to a 2 bedroom home. Build the home that fits your needs. Lot was previously approved for a 4 bedroom 3 bathroom, 2 car, 1971 Sqft Home. No monthly mortgage payments while you are building the home.

Build a New home for around 425,000
http://www.realtor.com/realestateandhomes-detail/6252-Lake_S…
0 votes Thank Flag Link Sun Feb 21, 2010
Good answer Jeffrey! The buyer DOES end up paying some of the commission. Of course this is an indirect fee and the buyer may never feel that it's their Broker that's tugging on his/her wallet. The truth is, most Agents are not aware that they should be using a Buyer/Broker agreement, and that YES, their time and expertise is worth something. Usually the Buyer's Broker is compensated by the Listing Agent, but it all depends on individual arrangement. What if the listing Agent wants to pocket the listing and isn't offering to compensate a buyer's Agent? Or, in the case of the now long gone company I pay 1, paying $1.00 to the buyer's Agent?

Another case: If you find a home that you love but it's a for sale by owner. Most buyer's Brokers will either ask for compensation from you or the seller, or tell you that you're on your own. It's about 10 times more work when dealing with for sale by owner or any other party that doesn't pay you any compensation as a buyer's Agent, and the risk is too great to not be compensated. Just not a smart move.
Web Reference: http://www.TadaTC.com
0 votes Thank Flag Link Fri Feb 19, 2010
Here in California the seller pays all commissions. If it is a short sale or bank owned foreclosure the lender will pay the commissions. A buyer's agent will be completely free to you. You will need to speak with a lender about your closing costs and down payment. If you need a good lender to talk to email me at ariannaschwarz@kw.com or call me at 619-733-7392. Thanks!
0 votes Thank Flag Link Mon Feb 8, 2010
Hi Jay,

I love North Park! A very eclectic vibe to the neighborhood. Try out Urban Mo's if you get a chance. Great food and entertainment on Wed nights. Look for a buyer's agent that you have a good rapport with. Go with your instinct. Ask for their track record, or whatever makes you feel comfortable with them. Like harold Sharpe said....plain and simple -

Yes...the seller pays our commission.
0 votes Thank Flag Link Sun Feb 7, 2010
Jay, It is kind of amusing when someone states using a Buyer's Agent will cost you nothing. Yes, it is typical for the Seller to pay commissions, but at the end of the day it is paid from the buyer's proceeds. Kinda what is first, the chicken or the egg? I guess my point is the Buyer is going to pay commissions regardless.

It is as obvious as everyones willingness to help you buy a property, but again that was not your question.

Good luck out there, it's the wild wild west!
0 votes Thank Flag Link Sat Feb 6, 2010
Dear Jay: Generally, Seller does pay. go to: searchsandiegocahomes.com. Register and get on listing alerts. You will get up to date info on homes for sale. Better than Zillow, homes.com, etc.. Can generate personal searches as well. Community info, schools, etc.. again.... search san diego ca homes . com
All one word. Pam
0 votes Thank Flag Link Sat Feb 6, 2010
Jay, Find an experienced Buyer's agent to work with you. It won't cost you anything as the seller pays the commission. Working with your own buyer's agent will give you the best representation and the most objectivity about an area.
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Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Sat Feb 6, 2010
Yes, unless you sign CAR Form BRE (Buyer Representation Agreement-Exclusive) and stated that you agree to compensate your Broker under paragraph 3A. Otherwise, only the seller who pays.

As for your prospects, it appears that you have at least several good agents from the San Diego area who responded to your question and could help you. Good luck.
0 votes Thank Flag Link Fri Feb 5, 2010
Hi Jay,
As everyone else has mentioned, the seller usually pays the commissions that go to the buyer's agent and the seller's agent. It is important that you work with an agent, when searching for that home, that you feel comfortable with. When are you moving here and have you looked into certain areas that you would like? I would be happy to help you narrow your search down and make this transition much less stressful for you. Please feel free to contact me with any questions.

Thanks,
Talia Holtgrieve
(619)379-8617
talia@coldwellbanker.com

Coldwell Banker Residential Brokerage
Realtor
Web Reference: http://www.TaliaSDHomes.com
0 votes Thank Flag Link Fri Feb 5, 2010
By the way, in most cases the agreement between the buyer and the buyer’s agent whereby the buyer contacts to guarantee the agent a minimum commission (Buyer-Broker Agreement) also stipulates that the commission paid by the seller is applied to meet that guarantee. In most cases, the buyer pays nothing to the buyer’s agent.
0 votes Thank Flag Link Fri Feb 5, 2010
All commissions are negoitable. If you sign a Buyer Broker Agreement then the commission is whatever you and your agent agree upon. If there is no agreement signed then it is ususally paid for by the seller in the listing agreement and shared between the listing agent and buyer's agent.

Welcome to San Diego!

Eric Barnabe
619-980-5312
0 votes Thank Flag Link Fri Feb 5, 2010
Jay,

Everyone’s answer, so far, has ignored the situation wherein a buyer enters into a contract with the buyer’s agent whereby the buyer guarantees the agent will be paid a certain amount or commission no matter what is offered in the multiple listing service. In many cases, this contract covers any property purchased by the buyer including new construction in which the property has not been offered on the mls and no commission is offered to the buyer’s agent. Of course, these contracts also cover the instance in which a buyer buys directly from an unrepresented seller (for-sale-by-owner) who is unwilling to pay a commission acceptable to the buyer’s agent.

You should discuss with your agent what their commission expectations are. Whether you have a contract with your agent or not, I am sure that you can respect the concept that your agent needs to make a living, just like anyone else. Of course, your agent still needs to earn their commission.
0 votes Thank Flag Link Fri Feb 5, 2010
Jay
Everyone has answered plenty so I am just going to say Welcome... think you will love it here. You will be able to call your friends while they are freezing in the snow and tell it is 70 degrees and sunny (smiling). It is a great place to be.

Good Luck!!!
0 votes Thank Flag Link Fri Feb 5, 2010
Hi Jay, As everyone below has stated the commission is normally paid by the Seller when the property is listed in the multiple listing service (MLS). Commissions are negotiable in California and are usually split between the listing agent and the buyer's agent. So to answer your question yes, the Seller will normally pay the whole commission. With that said, the seller has taken that into account and added that to his asking (listing) price.

I hope this answers your question, San Diego is a wonderful place to live, you just can't beat our weather.
0 votes Thank Flag Link Fri Feb 5, 2010
Hi Jay,

The seller pays the commission to the buyer's agent in most cases. Properties listed on the Multiple Listing System will show the compensation a listing broker offers to the buyer's agent. If the property is offered directly by a seller, like in the case of For Sale by Owners, the buyer will pay the buyer's agent commission unless a compensation agreement is negotiated with the seller to pay for it. Great time to buy in San Diego, prices have come down dramatically. Expect a lot of competition in the event you are looking for Reo's as well as entry level properties, there's multiple offers most of the time. I'll be happy to provide you with an overview of the neighborhoods and properties you are interested in and hopefully, find you the ideal one.

Miriam Quiñones, Gri,Crs,Cdpe
Certified Residential Specialist, Certified Distressed Property Expert
Dre Lic No. 00978885
Windermere Exclusive Properties
email: miriamrealestate@hotmail.com
ph (760) 214-1476
0 votes Thank Flag Link Fri Feb 5, 2010
Hi Jay!

I'm a fellow New Yorker (Manhattan and Long Island) moved here 3 1/2 year ago and can guarantee you will love it!
As for commissions, don't sweat it, seller pays unless it's a for sale by owner listing. Your bet bet is to work with a Realtor to secure you a place and give you plenty of options while using the multiple listing service (MLS).
Another benefit is, depending on your price range, often it can be negotiated by your Realtor that the seller pays all or a portion of your closing costs (average of 3% of purchase price).
I would love the opportunity to help a fellow east coaster so contact me if you like!

Best of luck and best regards,

Jill Wheeler
Realtor, Willis Allen
Del Mar, CA
858.699.0378
jwheelerproperties@me.com
0 votes Thank Flag Link Fri Feb 5, 2010
The seller usually does pay the commission. The average is 3% per side.

Best of luck and let me know if I can help,
Joan Wilson –Realtor, Ecobroker, SRES, Reo & Short Sale Specialist
Prudential license # 01341483
760-757-3468
0 votes Thank Flag Link Fri Feb 5, 2010
Hi Jay,

It is customary that sellers pay the commissions and all commissions are negotiable in the state of CA. A typical commission for a buyer's agent would be 2.5-3%. It works in your best interest to work with an agent that will help you find a great home and negotiate a solid deal. If you don't already have an agent, I would be happy to chat to see if we would be a good fit.

Regards,

Chad Dannecker
619-398-3859
0 votes Thank Flag Link Fri Feb 5, 2010
It is negotiable, but the seller pays it, and the typical amount is 5 to 6%, split 50-50% between listing and buying agents. Hope this helps :)
Web Reference: http://www.SethChalnick.com
0 votes Thank Flag Link Fri Feb 5, 2010
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