Sheryl Arndt, Broker â€“ Loan Officer
Here in California the seller pays the commissions it is written in the listing contract that they sign with agent/broker, it comes out of the proceeds of the sale.. and yes, on a short sale the banks pay agents and on foreclosures as well. The bank hires agents to list and sell their properties and they pay commissions. SO sellers pay the commissions out of the proceeds.
Hope that helps, so you can hire the agent you want....I specialize in the Westside of Los Angeles.
Madelaine Kolisnyk, Realtor
Power Brokers International
Normally, the seller pays all commission (to listing agent and buyer agent, i.e. they split) out of the sale proceeds. But in one scenario I can think of: if buyer signs an exclusive buyer-representation agreement with a buyer agent, and agrees to pay the agent a fee upon successfully finding and closing a transaction on a property, then this is permissible. But this is rare case though, since exclusive buyer-representation is not that common.
The short answer is NO.
Buyers do not pay a commission directly to their agent. Buyers purchase the home, the seller pays a commission to their agent based on the sales price. Seller's agent splits his/her commission with the buyer's agent.
Best of Luck to You,
Kawain Payne, Realtor
It is now becoming more common for buyer's agents to negotiate their fee with the buyer and if the fee offered by the seller is less than the fee agreed upon, the buyer may have to pay the difference out of pocket. If the fee offered by the seller is more than the fee agreed upon, the buyer's agent should rebate the difference to the buyer, but many buyer agency agreements allow the agent to keep any overage, which fails to resolve the conflict of interest. My policy is to rebate the difference. I also offer programs where buyers can pay by the hour and get the entire commission rebated, or pay a retainer and have the amount due at closing substantially reduced and thus the rebate substantially increased. It is very important for buyers to understand how and how much their agent is paid and what the agent's incentives are in regards to compensation. Be wary of any buyer's agents who promote their services as free because they are paid by the seller. If the seller did not have to pay the buyer's agent, they could sell for less and net the same, so the buyer's agent fee is ceratinly not free to the buyer, just built in to the sales price. Nobody works for free and that agent is more interested in promoting their own self interest than in providing the buyer true client level services.
I cannot reccomend enough that buyers should have a dedicated buyer broker to represent them the way a seller has a listing agent to represent their interests. I've attached a link below to one of the most popular blogs I've written on this subject and hope you find my suiggestions on how to find a great broker helpful.
Good luck and happy house hunting.
Commissions are, typically, paid by the listing agent to the buyers agent in a co-op fee split which is advertised in the listing as a BAC. Anyone that tells you that "sellers pay" the buyers agent isn't accurate or doesn't understand the broker co-op fee split [rolling eyes}. The BAC is paid to the buyers agent out of the over commission contracted by the listing agent with the seller. The Buyers Agent BAC is paid out of the listing agents overall commission. Sellers don't pay, directly. Period.
No, the commission is normally paid by the seller of the property, an amount pre arranged between the listing agent and the seller. There are instances where you might be responsible for your buyer agents commission. This is something that should be discussed at your first meeting with your buyer agent.
Usually the commission is paid by the Seller, however, in some cases, an agreement may be made for the Buyer to pay a commission. It is all negotiable.
Good luck and all the best,
Kat Becker, Realtor
Prudential California Realty
Yes, there are just a few instances where a buyer would pay a commission as Lance pointed out below. Thus the seller in most cases pays the commission to the brokers on both sides of the transaction. I'd like emphasize the importance of having your own exclusive representation versus working with the listing agent. Your best interests can only be served by having your own broker represent you.
If you'd care to discuss this further or have any questions regarding market conditions here on the LA Westside where I specialize, I invite you to contact me for a confidential consultation. It's free . . .
Coldwell Banker Brentwood
Commission is fully negotiable. Buyer and or seller can pay them separately or together. If it will get you a good deal pay it, but is up to you to decide what you want to do.
Best of luck!
If you are still selecting an agent to work with, you may want to speak with a couple others (since most buyer reps do not charge commission to you) and see if you like how they would represent you.
1. When a buyer signs an agreement that he pays the agent if he buys any property and then buys direct from a developer who doesn't offer commissions to agents;
2. When a buyer wants representation to buy a FSBO property and the seller doesn't offer commission;
3. When a buyer wants to buy a foreclosure at auction and wants and agent to advise them (many won't for liability reasons)
Lance King/Owner-Managing Broker
Sellers pay commissions, it is in the listing agreement.
Your closing costs are:
Loan fees, if purchasing a loan, ask your lender how much they charge! (Appraisal)
Escrow and Title fees. Depending on company.
Inspections are your up front costs, upon acceptance of offer,it is your due dilegence period.
Taxes pro-rated, so you may get a Supplemental tax bill upon closing.
Homeowners insurance,due upon closing along with downpayment
Hope that helps and good luck, I know 90025! (WLA)
Madelaine Kolisnyk, Realtor
Power Brokers International
310.869.1712 | #dre01377862 lisence # in the state of California
http://www.Madelainek.com You can search property here and have it emailed to you auto-matically.