Home Buying in Fishers>Question Details

Buzzz.killer, Home Buyer in Lakeside, MI

May an Indiana Realtor act as a buyer's agent, and if so, what is the basis for compensation?

Asked by Buzzz.killer, Lakeside, MI Tue Jul 17, 2012

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4
Hi Buzzz killer,

Cindy and Joe offer good points below.

Truth is all homes listed by Realtors in our market offer the
buyers' agent a portion of the listing agent's commission
which is already negotiated before the home is offered for
sale in our Brokers' Listing Cooperative. And most FSBOs
also offer commission to the buyers' agent. In those cases,
the buyer seldom, if ever, pays their agent for services.

I hope that clarifies things.

If you have not chosen an agent, I would like to offer my
services. Please phone my cell at 317.513.4652 if interested.

Thanks,

Marita
Marita Topmiller
Assoc Broker
Prudential Indiana Realty Group
0 votes Thank Flag Link Mon Jul 23, 2012
If you are buying here in Indiana, I can help you with no charge. Please contact me at 317-496-0027.
0 votes Thank Flag Link Tue Jul 17, 2012
I'm going to disagree with Joe...we are free to the buyers. The price you pay for the home is determined by a market value assessment and is sometimes increased or decreased depending on both the buyer and the seller's motivation. For example...if it is vacant...maybe the seller is more likely to accept less. If the buyer has looked at 50 homes and this is the ONE, maybe the buyer is willing to pay more.

At the end of the day; the buyer will pay no more than he/she wants for a home based on facts and motivations....not because he needs to pay the seller enough to cover the buyer's commission.
0 votes Thank Flag Link Tue Jul 17, 2012
Great question Buzz.killer.

Indiana does afford Buyers the opportunity to have their own exclusive agency representation.

Regarding compensation, a Buyer's Agent's fee is a matter of negotiation between the Buyer and the Agent. My company utilities an Exclusive Buyer's Agency Agreement, and our fee is agreed-to up-front. We agree to do everything in our power to ensure that the Seller or their Agent covers the entire fee. It makes very clear how we are compensated, who is paying the commission, what a minimum commission might be, and what happens if the Seller or the Listing Agent aren't paying any part of our fee.

Most often, the Seller pays the Listing Agent a commission when their property sells, and that Listing Agent will agree up-front to share a portion of that commission with agent who represents a Buyer. That amount is set by the Listing Agent, not the Buyer's Agent.

You'll often hear things like "a Buyer's Agent is free." To me, that's utter nonsense. From my experience, the Buyer ALWAYS pays ALL the commissions in the deal, because it's the Buyer who goes to the bank and borrows the money to make the deal happen. That money is given to the Seller who then gives a portion of it to the Listing Agent who then shares a portion with the Buyer's Agent.

Make sense?

Good luck in your search!

Joe Shoemaker
Principal Broker, REALTOR®
MacDuff Realty Group, LLC
317 413.8501
joe@joeshoe.com
http://www.facebook.com/joeshoe
http://twitter.com/#!/jojosmojo
0 votes Thank Flag Link Tue Jul 17, 2012
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