Home Selling in Wilmette>Question Details

Wilmettegal, Home Seller in Wilmette, IL

When selling FSBO, what percentage does the buyer's agent typically get, and does the seller always pay that, or does the buyer sometimes pay?

Asked by Wilmettegal, Wilmette, IL Tue Jun 14, 2011

And does it matter if the buyer discovered the property, rather than the buyer's agent?

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Ranj Mohip’s answer
You only pay those that you entered into a contract with--that's the case on all sales. If you are selling a FSBO, usually the buyer's agent will want you to agree to pay them a commission between 1-3% (at least this is what we see in our office). If you agree to pay this, you are responsible for it. If you don't agree to pay it, you aren't responsible for it. Legally, it doesn't matter to you who discovered the property. That would be an issue between the agent and that agent's client. Good Luck.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area.
2 votes Thank Flag Link Wed Jun 15, 2011
This question is a few years old. Someone likes reviving old topics.
0 votes Thank Flag Link Mon Apr 15, 2013
It is ILLEGAL for any agent to quite a commission on a public forum such as this. you can call or email individual agents and ask what they charge but they can not discuss what others charge or a commission fee in general. The seller does usually pay a buyer agent fee through the listing commission they pay their agent. You can choose to pay the agent or the agent can charge the buyer direct and take a discount on the house. Most sellers build the fee in ahead. the key will be how bad do you want to sell it.
0 votes Thank Flag Link Mon Apr 15, 2013
Were you able to sell your home or have you decided to use a professional Realtor?/
0 votes Thank Flag Link Mon Apr 15, 2013
1 1/2 year old question - wonder what happened with the sale
0 votes Thank Flag Link Thu Nov 29, 2012
When selling property "for sale by owner" the plan is usually devoted to the seller finding their own buyer, thus leaving all agents/agencies completely out of the picture.

On the other hand, if you elect to work with agents that approach you with a buyer you can expect to be requested to pay a minimum of 3% for their professional services. Since one agent could be doing the work normally handled by two agents, one might expect the fee request to be slightly higher than this percentage.

As the seller without agent support you can try negotiating the buyer/seller payment issue yourself. However, in the case of an agent bringing you a buyer, I wouldn't expect this to be recieved with open arms. Taking this approach could cost you losing the deal.
0 votes Thank Flag Link Thu Nov 29, 2012
The Commission paid to a buyer's agent by a FSBO Seller is negotiable. The Seller and agent should agree on the fee and then put their agreement in writing. There is no set rate, however, the most common buyer agent fees are 2.5 and 3% of the purchase price. Typically the Seller pays the commission not the Buyer.
0 votes Thank Flag Link Thu Nov 29, 2012
As stated below, setting commissions is illegal. Statistically, I see the mode in the range 2.5-3% offered as a cooperative commission, but the amount can vary.

Please give me a call. With me you can list your house, get it in the MLS (among other places), all for a flat fee + the cooperative commission. I can email you my rate sheet for you to take a look at. I think it would be worth your while, and it won't cost you anything to talk to me.

Anthony Cavalea
Able Realty
815-388-9300
0 votes Thank Flag Link Thu Aug 18, 2011
Although there is no set fee re:commission pay outs or "coops" as far as the industry goes, there is an anticipated range here on the North Shore, which generally is 2.25 - 3% up to the first million. If the property is valued over 1 million, then it is not uncomman to see a hybrid arrangement whereby the first million may be paid out at 2-2.5% and any amount up and above that the property sells may be paid out at 1.5-1.75%. As for who pays, generally the seller pays the buyers agent for bringing them the buyer, however with a FSBO it may vary, and ultimately needs to be in writing to insure that all parties are informed.
0 votes Thank Flag Link Thu Aug 18, 2011
There are no set commissions- that is illegal. Make your best deal. In today's market it is best to get your house sold. If the buyer has an agent I would happily pay them because they usually ran around and did alot of work to get the buyer to a state of mind to buy your place. I would not negotiate with my dentist as he is doing my root canal... better for everything to go smooth.
0 votes Thank Flag Link Tue Jun 28, 2011
In some states with agency on MLS the agents are representing the seller. both agents. seller and buyer. In some markets the buyer is represented by their agent. Yet seller still pays buyer agent. It is just a matter of fiduciary responsibility and representation. So if this FSBO seller that did all the work to market then the FSBO seller should be rewarded by having less cost or he can pay himself. However, that buyer broker that brought a buyer has to be paid. Either by the seller or the buyer. If it is a FSBO seller the buyer agent must submit offer that clearly describes offer with fees for broker. If FSBO rejects fees no buyer no offer. A buyer broker agreement in that scenario I would say would be very useful if FSBO becomes nasty. And in that instance the FSBO seller will be sued as will the buyer I would say. Does not matter if buyer discovered the property rather than buyer's agent. That agent has worked with that buyer and deserves to be paid. Either by the buyer or the seller. Unless maybe you have a RICH DAD Poor Dad the buyer paid $10K to help them find property. Fairly healthy pay for a Non-Licensed Realtor.
0 votes Thank Flag Link Wed Jun 15, 2011
There is no set amount, and you can negotiate whatever you want. In this area in about 90% of transactions, the buyer's broker gets paid roughly 2.5-3% from a coop when working with another broker through the MLS, so they will request a similar amount when working with a FSBO, although in these situations it would be easier to negotiate less.

It may matter whether the buyer discovered it rather than the buyer's agent. However, the buyer may have signed an agreement with the buyer's agent that keeps them involved. If not, no, technically they don't need to cut in the buyer's agent unless they want their agent to represent them. The buyer does benefit from their agent's advice and consultation. Additionally, the buyer's agent has showed them properties, consulted the buyer about the home-buying process, and it just isn't fair to make the buyer's agent work for free. Buyer's agents do a lot of work and oftentimes get nothing in return, and their buyer should be looking out for for them as they look out for the buyer.

Yes, sometimes the buyer will pay, but this is very rare and generally unlikely.

Cut the buyer's agent in and be happy that you may have sold your home.
0 votes Thank Flag Link Wed Jun 15, 2011
Buyers' agents working with buyers typically get paid by the seller. If you are going it alone, it's important to offer compensation to agents who might be bringing you an offer.
As to your 2nd question, buyers and agents work together and there is much more involved in a transaction than just finding the house. The buyer's agent must negotiate the offer, make sure all paperwork is correct, handle the inspection, coordinate with the attorney, follow up with any issues, revisit the house periodically for the buyer to measure or meet contractors, advise buyers on schools, local amenities, transportation . . . you see what I'm getting at. Actually finding the house is just the first step of many. Good luck!
Web Reference: http://www.CallMargaret.com
0 votes Thank Flag Link Wed Jun 15, 2011
Wil.....

As one would expect....everything is negotiable.

It's always best to present the seller with a "one time showing agreement" that they agree to and sign. This document should include the commission paid, who pays what, the name of your customer, and the term for which your customer will be protected.

It is possible that the seller will elect not to contribute toward the professional fees and ask that your buyer cover this expense. In my opinion, this is a sign that it may be best to explore other options for your buyer. In our location 3-4% is the standard commission expectation.

Good luck,

Bill
0 votes Thank Flag Link Wed Jun 15, 2011
Wilmettegal,
There are no typical amounts. The agent can request an amount which you can agree to or negotiate. Who pays is between you, the agent and the buyer. Generally, I like to get this issue resolved up front as soon as possible. The commission can be paid by either or both parties and who finds the home first really isn't a factor.
Here are some options. You can pay the agreed commission and just consider it a discount. You can increase your price by the agreed upon commission amount in order to pay it. The buyer can pay all or a portion and you pay a portion. Where an agent is involved, take advantage of their knowledge, resources and experience and realize there are lots of sellers out there hoping for a buyer. Be glad you have one.
0 votes Thank Flag Link Tue Jun 14, 2011
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