Home Selling in Pottstown>Question Details

Ann L., Both Buyer and Seller in Schwenksville, PA

What happes if the buyer agent only asks for 2.5% commission in the contract negotiations?

Asked by Ann L., Schwenksville, PA Sat Aug 30, 2008

I signed a contract with an agent to sell my house and it was on a 3% seller and 3% buyer commission. Who gets that .5% the buyer agent is not claiming? Is it typical for the seller agent to hold on to his commission to help with inspections if problems arise?

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8
Ann Marie,

I also wanted to answer your question about commission. If you agreed to pay a total of 6% for the fee for service, the split would be 3% to your Broker and 3% to the buyer's Broker. If your Broker winds up representing both you and the buyer (dual agency-see Consumer Notice) then your Broker would keep the entire 6% fee for service. The fee is not paid until settlement is over unless you had a special agreement where you agreed to pay your Broker in a different way. Inspections have nothing to do with the fee for service (commission).

I hope this helps. Sounds like you have some great questions. Feel free to email me some others and I would be happy to answer all of them.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
http://www.reneeporsia.com Where you can get your FREE market snapshot
1 vote Thank Flag Link Mon Nov 3, 2008
The contract between the listing broker and the seller typically dictates how much commission the seller owes. A seller could see what they can negotiate with the listing broker, but the listing broker would have to agree.

You will have to take a close look at your contract.
Web Reference: http://miOaklandCounty.com
0 votes Thank Flag Link Sat Jan 10, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Hello Ann,

If you hired your Realtor and agreed to pay 6% then that is what you will pay. If a buyer agent only put 2.5% in his contract when he submitted a contract for his/her buyer, perhaps your Realtor didn't offer out the full 3% in the MLS to other Realtors and plans to keep that extra .5% for him/her self. You should ask your Realtor to let you see the MLS sheet to see what they offered out. I would be happy to pull the MLS sheet for you to let you know.

Start by speaking with your Realtor first.

Good luck.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask For Renee
http://www.reneeporsia.com Home of the market snapshot. Try it right now!
0 votes Thank Flag Link Sat Jan 10, 2009
reduce the price of the house by .5%. The buyer did you a favor, and in return it means you also pay your seller agent less! Not much, but enough to take the whole family out to a nice steak dinner.
0 votes Thank Flag Link Sat Jan 10, 2009
What if there were two competing offers and one of the buyer broker's offered to reduce his commission? I don't see why this is not feasible. If this is the case, then shouldn't the seller be able to chose the offer where the buyer agent is willing to take only 2.5?
0 votes Thank Flag Link Fri Jan 9, 2009
That is a great point as a seller you should always check to see if your agent is offering a 50/50 cobroke, it will help attract more buyer agents with potential buyers to your house. I have never seen a buyer agent ask for less than was advertised in MLS. chances are your agenmt only offered 2.5 in mls and was planning on taking 3.5. You better ask before counting on an extra 1/2 percent to do something with,
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Nov 3, 2008
AnnMarie
I am confused. You, as the seller, pay the commission to the listing agent's broker. The escrow instructions stipulate how the commission is handled, usually whatever is stipulated in the MLS. Usually the commission is split 50/50. So if your listing agreement stipulates 6%, split 50/50, then the broker of he buyer's agent are paid 3%.

In most cases the buyer's agent does not stipulate commission as it is already stated in the MLS.

Hope this is helpful. You might want to check your Realtor if you questions.
0 votes Thank Flag Link Sat Aug 30, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
As far as in AZ, there really is no way that a buyer's agent asks for less. It is spelled out directly in the MLS listing what the buyer's agent will receive. I do not understand why if you agreed to pay 3%, the agent would want to take less. Possibly you signed up for a 6% and your agent is taking 3.5%. Don't assume that it is 50-50! In your instance, possibly the agent wants to give the buyers the .5%. Maybe they are trying to help their clients to get th house.
0 votes Thank Flag Link Sat Aug 30, 2008
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