BEST ANSWER
Let’s clear up something right off the bat; BUYER’S DO NOT PAY COMMISSIONS. The brokers fee (i.e., commission) that is paid to the selling broker and buying broker is a pre-arranged amount (usually a percentage of the sales price) that the seller has agreed to pay at closing for their services via the terms listed in the exclusive right-to-sell listing agreement. The for sale signs i.e. the sign in the yard is a way, brokers advertise their services to potential sellers and does not affect buyers.
It is a pretty smart idea when you think about it, because a buyers first response will be to call on the sign. Leading to an opportunity for the listing agent to capture a buyer for the home and get paid double. “Okay,” many buyers say, “so the Listing Agent represents the seller and not me. Is that a big deal?” YES IT IS, it is important to understand that if the Agent represents the seller, they cannot reveal certain things to you, as the buyer:
The reason for selling (unless the seller specifically authorizes it)
Any concesssions, in price or otherwise, that the seller may be willing to give up.
Any conversations that the seller and Agent may have had.
Any information that could be detrimental to the seller, or give you, the buyer, an advantage.
This would include a CMA (Comparable Market Analysis) that could put the seller at a disadvantage.
Here is a breakdown of the commissions:
Sales Price $650,000
Traditional Commission if based on *6% = $39,000 seller pays
Traditional Listing Agent Commission *3% = $19,500
Traditional Buyers Agent Commission *3% = $19,500
Traditional Buyer Client = $0
Buyers House Realty Buyers Agent = $4875
Your Buyers House Realty Rebate = $14,625
There are plenty of things throughout the buying process a buyer will need to be concerned about, paying the commission is not one of them. Keep in mind that BuyersHouseRealty is in the buyer real estate education business and we pay our buyers for their education. Learn more>> http://www.buyershouserealty.com.z57preview.com/realtor_cont
Happy House Hunting!
Regards,
Gavin St.Louis
Texas Managing Broker/Realtor
BuyersHouseRealty
"Showing You the Real Estate Rebate"
Mon Jul 13 2009, 10:59