Commissions and fees are negotiable at all times. To suggest otherwise is to make an antitrust accusation. The agents' response here is prudent and correct.
The seller pays the listing broker a commission. The listing broker may offer to share a portion of that commission as compensation to a broker that secures a buyer for the property. The amount of the compensation for a cooperating broker is specified in the multiple listing service.
A buyer's agent may have a contract with a buyer where the compensation is spelled out. There may be a charge that is a fixed percentage of the sale price or a fixed dollar amount that is not tied to the sale price. There may be a line in the buyer broker contract stating that the buyer agent will accept whatever compensation is offered by the listing broker in the multiple listing service. Buyer agent compensation does not necessarily involved the monies specified as cooperating agent compensation.
Occasionally companies that are involved with relocating employees will hire buyer agents and negotiate fees for their services that are not tied to seller-paid commissions because they want clear boundaries for loyalty and representation.
There are numerous other scenarios involving other business models, including flat-fee MLS where the seller pays a fee for specific advertising vehicles and which may or may not include an offer of compensation to an agent who brings a buyer to the property.
There are no STANDARDS. Agents and brokerages have fixed costs in various business models. Fees and commissions are calculated to cover costs and return an income.
Finding a home is not the most expensive and time consuming part of a real estate transaction. It is silly to think that finding a home on the Internet accounts for a large bulk of time or that a consumer's ability to zero in on a home is evidence of wisdom or ability to complete a transaction satisfactorily without professional help.
I will agree with Asher that the industry would be better served with a higher threshold for entry ... and more stringent continuing education requirements.
Frances Flynn Thorsen
This opens the door to foreclosures, short sales (bank approved) and for sale by owners.
A percentage of agents look at how much they would get paid to sell the home. Wouldn't You?
A buyers agent will not care nor direct you to another property.
Before you would make an offer on a home, you would be notified by me of any overage you would be asked to pay (if any). You then base your offer on that fact, or if priced low enough factor that into the purchase.
To view about buyers agency and the rest, http://www.sunnyspotrealty.net/BuyersagentFlorida
I have earned my fees times ten for buyers. I saved them thousands for each purchase.
Hope this helps.
Exclusive Buyers agent,
Owner/Agent Joseph Beauvais
Hope this helps.
As stated below there is no standard fee. As a buyers agent, I often get the majority of my fee from the seller side and the remainder if there is any is negotiated in the transaction. As a buyer in this market place, it is important to have someone looking out for your best interest who will help you to get the property at the best price with the least amount of anxiety. Best of luck to you!
Lucy is incorrect, every realtor does not work for the seller, every state is different and in some states the seller is only required to pay sellers agents buy may pay buyers agents. In other states sellers prefer to pay buyers agents and do not wish to work with sub agents at all. Sub agents leave them open to law suits that a buyers agent does not. In some instances the seller will pay the Buyers Agent and in some the buyer will and in others both will depending what your contract with the buyers agent is.
In Texas you really do not have a Buyers Agent unless you have signed a Buyers Representation Agreement and then it is spelled out what the agent expects and how the agent will be paid. Usually by the seller, even if it is a For Sale By Owner.
I would take the answer from a New Jersey Broker since I have noticed that even in Texas we are not always clear in the agency laws.
I hope this helps
I have no doubt she has an agent with no knowledge.
I will not take the time to reply to this person. To the rest needing to understand and to answer the question;
1. Laws are different in each state. Some states have yet to endorse an exclusive buyer agency relationship due to greed and lack of understanding. The listing agent wants all of the commission.
2. Any information provided by the multiple listing service is â€œdeemed reliable but not guaranteedâ€. This information, even if in error, is populated to many many web sites.
Buyers assuming this is accurate and true information then goes to the listing agent, (now a buyers or transactional agent) is going to the agent that originally made this grievous and costly error in the â€œMLSâ€ to buy the home. No check and balances.
3. An exclusive buyers agent has the experience and knowledge to know to check all information that is presented before making an offer.
4. The exclusive buyers agent checks to see the true value of the home on todayâ€™s market then presents this information to the buyer. I cannot possibly list all that has to be check on here. Some; Code violations, no permits for work done, liens not yet recorded, zoning for adjacent property etc.
5.If a foreclosure, you cannot expect an agent that tries to list property 30 days out of 31 to suddenly become an expert as a buyers agent and have the expertise needed to understand and give an opinion on the 3-35 page addendum drafted by the banks attorneys let alone be privy to each banks procedures.
I just had an attorney purchase a home from me from another state. He told me, â€œJoe I do not know what I would have done without your help with inspection results, interpreting the contract and handling all of the details of the closingâ€ He as an attorney did not know the contractual laws in Florida. Even though he understood them, he did not know which items are of concern. Monday we close and you can shortly afterwards, look for his letter of recommendation on my web site. Sunny spot Realty inc..
As for buyers having done this through the listing agent for years and think they are savvyâ€¦ I wonder how much money they have lost due to overpaying or through other contractual missed opportunities to get the best property at the best price. I hear only their side of the story and am not sure if this is really a buyer or a listing agent promoting their side. What do you think?
If you want to see how a Exclusive buyers agent handles foreclosures with complete details for buyers and agents go to; Buying forclosures/Reoâ€™s
Letâ€™s see if your agent knew this in truth.
Joseph Beauvais Owner/agent 26 years.
Exclusive Buyers agent (239) 770-0686
Covering S.W. Florida
As stated below, there are no standard fees and commissions are negotiable. A buyers agent is just that His or Her duties and loyalties are to the buyer.
I do not know about New Jersey but in Texas the Real Estate agents are very knowledgeable and retrained and tested every two years.
Our MLS in the Harris and Montgomery County area does not require us to share commissions with any one other than another MLS Broker. We do not pay your attorney - you must. The seller does usually pay the buyers Rep. It is not a requirement but it is a requirement for a commission split of some sort to be on the MLS. with Residential Property .