The answers below are correct. That is negotiatied between the realtor and the owner of the home. There is no fixed commission by law.
The actual check to the broker, is almost always cut from the proceeds of the sale of the property. Depending upon the perspective you take, who actually funded that expense is debatable. Some say the seller, since the seller cuts the check from his/her proceeds. Others say the buyer, since their is no expense until there is a transaction, and there is no transaction unless or until a buyer funds it.
Consider this comparison. A buyer makes an offer on a property for $203,000, but the offer states that the seller needs to pay $3000 toward to they buyer closing costs. Compare that to a sale price of $200,000, but the buyer paid his/her closing costs directly. The seller netted the same in both instances. So, who paid?
I take the perspective that all fees to all companies and municipalities outside of the buyer and seller are costs of the transaction. The buyer decides to purchase (or not) based upon the total out of pocket expense he/she will incur. That total number is either accpetable, and the buyer moves forward, or not. The buyer is not concerned with the seller's net proceeds at the end of the deal. The buyer is only concerned with his number. The seller is only concerned with his bottom line. The seller decides to sell (or not) predicated upon the net proceeds that he/she will walk with. All expenses are born of the transaction and the parties either participate (or not) based upon the bottom line financial situation that it represents to them. Who actually writes the check is less significant than your bottom line number.
Typically, the check is written from the seller proceeds at the closing table.
The basic message here is correct. If you decide to work with an agent from the buyer's side as a FSBO, the agent's commission is something to negotiate into the offer. One tip, in your marketing, let agents know that you are willing to "co-broker" your home. This means you are willing to negotiate the commission into your price. This will help to encourage agents to actually show your home!
That is negotiated between the seller and the agent.
If it is a buyer's agent and their client wants to buy a For Sale By Owner, the agent will negotiate with the seller to pay the commission. If the seller does not want to pay, than it is up to the buyer's to pay the commission. This fee is usually arranged up front with the agent when the buyer's sign the agency agreement.
It is more common than not that the seller will be happy to pay the commision for the agent to bring a buyer.
I hope that this helps!
In most cases if the prospective buyer contacts his realtor before the For Sale By Owner and lets his Realtor act on his behalf. Yes
The quick answer is that it's negotiable.
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