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In Texas, who pays the buyers agent commission, the buyer or the seller?

Chris
Other/Just Looking
94131

Answers (6)
Tom Burris
Mortgage Broker
or Lender

Dallas, TX

Chris.....
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.

Mon Jul 13 2009, 13:10
BuyersHouseR...
Agent
Texas

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
Anita Dallas
Agent
Austin, TX

As noted by Mr. Burris, in most instances, the Listing Broker has negotiated a commission agreement with the Seller. The Listing Broker agrees to share the commission with the Agent who brings the Buyer to the transaction.

Mon Jul 13 2009, 05:23
Barbara Guadiana
Agent
Austin, TX

Chris,
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.

Barbara Guadiana

Mon Jul 13 2009, 01:48
Tom Burris
Mortgage Broker
or Lender

Dallas, TX

Normal and customary for the seller to pay.
Actually.... the listing agent lists for a fee and shares it with buyer's agent.

Sun Jul 12 2009, 21:34
Josh Thomas
Agent
Austin, TX
FIRST ANSWER

Negotiable.

Although, the seller usually pays it.

Web Reference: http://www.jtreal.com
Sun Jul 12 2009, 21:32

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