Does an exclusive buyer's agent get paid from the sale or from the buyer?

Asked by Dan, Oklahoma Fri Aug 8, 2008

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10
Steve Reese, Agent, Shawnee, OK
Fri Aug 8, 2008
It could be either. If you choose to hire the services of a real estate licensee--just like a seller does when they list their property--you will execute a Buyer Broker Service Agreement in addition to a Single-Party Broker or Transaction Broker Agreement, depending on what level of representation you desire. You have a number of ways for the broker's professional service fees to be paid. Look at paragraph 5 of the Agreement I've referenced. You should also be familiar with Oklahoma's Broker Relationships Act, outlined on the real estate commission's Web site (http://orec.ok.gov). And despite what another might say, all commission amounts are negotiable. It's reckless and incorrect to suggest there's a "normal" amount. Negotiate superior service from a reputable agent and established real estate firm. Good luck!
2 votes
Tman, , 30642
Fri Aug 8, 2008
Good morning Dan,

It's not a secret and it's not a mystery and contrary to what some of the agents would "love" for you to believe ... the buyer pays.

The buyer is ALWAYS paying the commission; it is built into the asking price.

The commission is set by the listing agent and is generally "shared" to some extent with the agent who sells the house..

When you sign a buyer representation, it will include an obligation to pay the commission if the agent does not collect from the listing agent. Make sure your agent presents all offers "contingent" upon whatever commission you have decided upon with your agent. This will help insure she collects from the proceeds at the closing table.

I hope this helps.


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2 votes
Ed McNamara, , Oklahoma City, OK
Wed Aug 13, 2008
First. let me start by saying there is no set or "normal" commission in real estate. The commission is negotiated between the listing agent/brokerage at the time the listing agreement is signed. The listing agreement specifies the seller is aware the listing brokerage will compensate a selling brokerage for bringing a qualified buyer and closing the transactions. We have become used to the title company making commission splits transparent. In reality, the listing brokerage pays the selling brokerage, not the seller. I disagree that the buyer pays the commission and that commissions are built into the selling price. If that were the case, FSBO's would always sell for less. If a buyer hires a Realtor/real estate agent to assist them in finding a home the buyer brokerage agreement may specify a fee paid by the buyer if the buyer does not ultimately buy a home from the agent. There are many examples of buyers using a real estate agent to look at several homes and then buying directly from a builder or FSBO. The buyer brokerage agreement specifies the conditions in which a buyer may be responsible to pay a real estate agent. I make it very clear that a fee will be paid if I show homes and the buyer ends up closing on a transaction that does not offer a commission or uses another real estate company.
1 vote
Donald Mituz…, Agent, Chappaqua, NY
Thu Jan 1, 2009
It all depends. Many exclusive buyer's agent agreements are written that the commission is paid by the seller and others times it is by the buyer. Usually, if a house is listed in an MLS and there is a commission being paid to the buyer's agent, then that is what is accepted. If a buyer's agent is really out there working for you and finds a home that's just right that is not listed for sale, you could be responsible to pay the commission. Some agreements list the buyer's agent as getting a minimum commission. It all depends on the agreement.

Almost always there is a commission being paid by the seller of the home and that is what is accepted by the buyer's agent.

Don Mituzas
Web Reference:  http://www.nyhomeseller.com
0 votes
Phill Slocum, Agent, Oklahoma City, OK
Thu Jan 1, 2009
I agree with Ed McNamara & Steve Reese; both their answers are good. Here is some information for you.

Information on Buying and Selling a House Booklet
http://www.ok.gov/OREC/documents/Buying%20and%20Selling%20a%…

Broker Relationship phamplet
http://www.ok.gov/OREC/documents/Broker%20Relationship%20Act…

Being informed is very important especially in buying real estate. I would start with these two links provided and look around the OREC web site for more information.

The easiest way is to hire a REALTOR to guide you through the process.

Spock said it Best. Live Long and Prosper! H A P P Y N e w Y e a r s !
Our Web Site:
http://www.WestOkcRealEstate.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Dec 24, 2008
Dan it all depends what you agree on with your buyers agent. Most buyers agent get paid their commi9ssion from the fee advertised in mls by the listing agent. Some buyer brokers will ask you to pay more such as if the listing agent is offering you 2.5 they will want you to pay .50. everything is negotiable, just negotiate before signing and before looking at any properties with them. good luck with your search.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Lisa Manley-…, Agent, Bixby, OK
Wed Dec 24, 2008
In most arrangements, the commission will be paid by the seller. Ask the Realtor how they handle compensation and see what they say. A legit buyer's agent will usually be paid by the seller at closing, Some Realtors charge a very small gas fee. Please call me if I may assist you in buying a home~
0 votes
Bill Eckler, Agent, Venice, FL
Fri Aug 8, 2008
Dan,

As previously mentioned, the agent's commission is generated from the contract amount and does not represent an additional amount paid by the buyer. It is paid by the seller.
0 votes
Billy, Home Buyer, hong kong
Fri Aug 8, 2008
You will not have to write the agent a check - the seller will.
0 votes
Billy, Home Buyer, hong kong
Fri Aug 8, 2008
Both. The buyer puts up funds to purchase the house, and a portion (normally 3%) of that price goes to the buyers agent.
0 votes
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