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.
Prudential Indiana Realty Group
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.
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.
Good luck in your search!
Principal Broker, REALTORÂ®
MacDuff Realty Group, LLC