Home Buying in Marble Falls>Question Details

Russ, Home Buyer in 77536

Potential buyer's agent in Marble Falls wants a 3% commission paid by me, ( if the seller refuses to pay ).

Asked by Russ, 77536 Thu Nov 15, 2007

Who usually pays the buyer's agent for their time? I am attempting to purchase property in Marble Falls, TX. I have bought Real Estate by myself before and will NEVER repeat that experience. The potential buyer agent (who works for a nationwide firm), presented a contract for my signature with no deliverables, stating that she would first ask seller/seller's agent for her fee of 3%, but if they refused then I would pay. Of course I think this automatically means that I will pay the fee.

Help the community by answering this question:


What you are referring to is a buyer's agency contract. If you are not comfortable signing, find another agent or try to negotiate a lower commission.
You are correct in your understanding that you will pay if your buyer's agent cannot collect the fee from the listing agency.
Web Reference: http://www.dianeglander.com
3 votes Thank Flag Link Thu Nov 15, 2007
While this is normal, it never happens. I work the Marble Falls market and gladly do not require this clause in the Buyer's Representation Agreement. The seller pays and you should not have concern. In hundreds, if not thousands of transactions, I have never seen this happen.
Web Reference: http://www.mylakelbj.com
1 vote Thank Flag Link Fri Dec 31, 2010
@Jeanne & @Jeff - are you aware that you are answering a question from November 2007? Hope he got his answer by now!!!
0 votes Thank Flag Link Sat Jan 1, 2011
Hi Russ, agree with others - conventional for seller to pay commission to both agents. I consider it enough of a reward to earn my buyers loyalty, and a buyer agency agreement can be a good way to document that.

Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Dec 31, 2010
I hear your concern but let me first say that I have never had a situation where a seller including a for sale by owner refused to pay my commission when I brought them a buyer. With that being said in your question you stated that you would never purchase real estate without an agent again. That alone shows me that you understand the benefits that an agent brings to the table. If your agent shows you the perfect property and the seller refuses to pay the commission outlined in the agreement does your agent not deserve to be paid for bringing you to your dream property, negotiating the best deal possible, and walking you to the closing table? In the rare occassion that a seller would refuse to pay your agents commission, perhaps your agent would be willing to negotiate a different amount to ease your mind. Just be sure not to ask your agent to do anything you would not want someone to ask you to do. Goes back to the Golden Rule of doing unto others as you would have them do unto you. Do you want to do your job and not get paid your full paycheck?

Happy Thanksgiving and Happy House Hunting!
0 votes Thank Flag Link Wed Nov 21, 2007
It is a very common part of the contract. Usually, the only time this would be a factor is if you found a for sale by owner house the you wanted and the seller was not willing to pay the 3% fee. The agent needs to be paid for their time and expertise. Other wise if it is not a for sale by owner, the agent can tell you if the seller is paying his fee. In Texas it is rare that a seller will not pay the buying agents fee.
0 votes Thank Flag Link Wed Nov 21, 2007
Yep, its normal but rare that any seller wouldn;t pay the fee. It does happen more often than not...
0 votes Thank Flag Link Thu Nov 15, 2007
This is normal. You should be willing to pay the buyer's agent for their time. If your purchase a listed property the amount of compensation will be known by the agent and you can discuss that with them so that you make the appropriate offer. I would guess in most listed property sitatuations that they are listed with a 3% commission to the buyer's broker, but commissions are negotiable and it could be listed as more or less. If it is less than 3% you should know this as if you sign the buyers representation agreeement you would be obligated to pay the broker the difference. If you pursue a FSBO there may be no commission offered to the buyers agent from the seller, but again you should know this when you make the offer, then you can structure the offer appropriately. Your agent should explain all of these options to you when you sign the agreement. Occasionally now you may see bank owned properties offering 2.5 or 2 or something like that. When you right the offer, if you don't want to pay cash from your side, just have your agent add the difference to the closing costs that the seller would need to pay. I hope this answers your question.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu Nov 15, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
I have not run into a situation where a seller refused to pay the commission to me for representing the buyer.
Obviously if it is listed they have to offer a co op% or (pay the buyers agent) The only circumstance that I can imagine would be a hard headed FSBO that refused to pay a Realtor. I try to build a relationship with the buyer and assume that the lack of payment from the seller to me would just be reflected in the offer price.
0 votes Thank Flag Link Thu Nov 15, 2007

Typically, the Buyer's agent does all the work for the buyer and is paid by the Seller. When you are looking at properties, you should know ahead of time whether the Seller is offering to pay the commission-it's stated in the Multiple Listing Service. If it is a For Sale By Owner, have your agent ask them first if they cooperate with Realtors. If not, then you make the call if you still want to see the property or not. If you choose to, and you decide to purchase that one, you will be the one paying your Realtor's commission. It is part of the Buyer's Representative Agreement as a way of the Buyer's agent being protected that after all their work, and the deal closes, they will get paid.

Hope that helps,
0 votes Thank Flag Link Thu Nov 15, 2007
How much money are you talking about? At the end of the day, you want to sell the property. For full service commission the seller could pay 4 to 6%.
If you still get the money you oriiginally wanted, you may want to consider paying the 6%, give up some money to make sure you sell.
Before you do that, go back to your sellers agent and talk to them about what they normally pay other agents for a commission, and work off from there.
Web Reference: http://www.iansellsnola.com
0 votes Thank Flag Link Thu Nov 15, 2007
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