Home Buying in 40160>Question Details

Cah412, Home Buyer in 40160

If a broker for a buyer gets a part of the commission and makes more depending on the price of the house...

Asked by Cah412, 40160 Wed Jul 15, 2009

How can you be sure everyone is on the same team? It seems only the actual buyer benefits from the lowest possible price.

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Yes, the buyer is the only one that truly benefits from a lower price. If you have a Buyers Agency Agreement with an Agent they have a fiduciary responsibility to work in your best interests. We also pay out fees based on the price of the house. The higher a house sells for, the more we pay to our MLS, which is FMLS in GA. So that is one area where it costs us if you pay more for a home. As agents, we know that if we do a great job representing you, you will more than likely refer friends and family. Most good agents are in this for the long haul and look to earn continued business from each transaction.
Web Reference: http://www.JenBowman.com
3 votes Thank Flag Link Wed Jul 15, 2009
First I guess you need to trust the agent, but that is something only you can decide. But the agent for the buyer and the seller have a fiduciary responsibility to do the best for their client. Now what is the best can be many things, in some cases it is one thing some the other, but usually it is mainly about the best possible price. Keep in mind that even a $20k difference in the price of a home sales price makes very little difference in what the buyer's or seller's agent gets paid, they only get a small percentage of the amount. But every$1,000 makes a big difference to a buyer or a seller and any agent knows that there ain't nobody happy until their client is happy. I don't know many, though there are a few I am sure somewhere, that would let $30 or 50 dollars in extra commission be even a consideration in a deal. So if buying a property is what you want, I bet if you find an agent you trust and knows the business, you will find they are more concerned with your outcome than the few dollars they would theoretically make buy not getting you the lowest price possible for you.
2 votes Thank Flag Link Wed Jul 15, 2009
Bottom line is, the buyer makes the decision on the cost of the home. After their agent has show the comps and many, many homes, the buyers are very aware of what to offer. Buyers' agent present their offer on their behalf to the sellers agent.
0 votes Thank Flag Link Thu Jan 7, 2010
Terminology is also a bit confusing. Many real estate agents are not brokers and some are. They work under a broker or brokerage(company) and their company gets a portion of both the listing agents and/or the buying agents commission. There are also costs paid by the agents such as advertising, copying fees, postage, MLS fees, gas, marketing, insurance etc.
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Wed Jul 15, 2009
This is an excellent question and I have heard it many times from buyers. I always provide my buyers with comps in addition to what I can provide with experience and knowledge. We work on percentages and small ones at that, so we would have to grossly overpay to see much change in a commission check. If I help my buyer purchase an overpriced moneypit, they will never speak my name (except in vain) again. If I can get my client a great deal for the home they love, they will sing my praises. I would like to believe that the majority of buyer's agents out there have this philosophy! Best of luck in your home search!!
0 votes Thank Flag Link Wed Jul 15, 2009
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