in contract specifically who pays the commission i.e. FSBO, contract submitted
by Buyer's Agent -- did not initial form for commission, and is hoping the
Seller's Listing Agent's Broker will pay as written on the form -- the only problem is there
is no listing agent's broker to pay the commission and it is not stated in
the contract as it should be who will pay. CONTRACTS are important and will hold up
in court -- if you want to get paid on a FSBO and you are the Buyer's Agent,
be specific on the contract -- otherwise, you will not get paid by the FSBO
seller -- you cannot assume as most have commented that the Seller
So, those buyer's agents are doing a lot of work for the Listing Agent by finding, qualifying, and delivering potential buyers. To get agents to bring buyers, the property first needs to priced right and be a good value for the buyer, as well as provide the agent with a commission.
L E Green Schubert, License 613876
Keller Willams Realty
It should be noted that sometimes you will run into a seller who doesn't want t pay an agent. For Sale By Owner (FSBO) is an example. Although rare, a buyer may be asked to pay the buyer's agent a fee to represent them in this type of transaction.
Most FSBO people will pay the buyer's agent though, as they see the value in the traffic they can bring.
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. â€œOkay,â€ many buyers say, â€œso the Listing Agent represents the seller and not me. Is that a big deal?â€ 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!
Texas Managing Broker/Realtor
"Showing You the Real Estate Rebate"
While in a contract EVERYTHING is negotiable, in Texas it is customary for the sellers agent to negotiate an agent fee during their appointment/agreement and the seller to pay both sellers and buyers agents commissions.
Under very rare circumstances the seller could negotiate the buyer to pay the buyers agent commission. Very low/rare statistic.
Happy to help.