Exclusive Brokerage Agreement Commission: Is it usual for a buyer to pay a 3% commission to the broker in

Asked by Tia, Atlanta, GA Thu Jan 10, 2008

case the Seller does not pay Broker a commission? Why would the Seller agree to pay this commission if the Buyer has signed an agreement with the Broker to pay it?

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Lee Taylor, Agent, Decatur, GA
Fri Jan 11, 2008
I'm a licensed real estate salesperson in Georgia. I'm a Realtor, a multi-Million Dollar Club member since 2004, and I have a specialty, which is helping Sellers and Buyers in Intown Atlanta and Decatur.

By profession, I am a consultant. Consulting is nothing more than the application by a specialist of technical information to a problem which, when solved, offers a disproportionate benefit to the client compared to the fee he pays.

You are paying whatever you pay your broker because they delivered a disproportionate benefit to you and made the purchase and sales experience better for you, based on your unique needs, right? The broker helped, right?

You should be able to work this out as long as everyone involved is reasonable.

Sometimes some of us here at Trulia Voices get paid 10% contingent commissions. Sometimes we get paid up front as retained consultants. Sometimes we structure flat fees.

It's 2008, and we here at Trulia Voices are offering disproportionate benefit.

Tia, if your agent is not one of us here at Trulia Voices, then they may not be worth what you are paying them. I'm just sayin' ...
Web Reference:  http://intowninsider.com/
0 votes
Joshua Jarvis, Agent, Duluth, GA
Fri Jan 11, 2008
As posted in the same question from before:

At the top of the agreement, it says, "it's required for a Realtor to have a signed document before representing them" (not verbatim).

First, we need to have an agreement in place to actually be able to perform the duties that look out for your best interest. We have a fiduciary responsibility (this is the same responsibility that attorneys have) to look out for your interest.

Secondly, if you are visiting listed homes, homes that are listed with agents, then they have ALREADY agreed to pay (usually) the Buyer's Broker something. Since that agreement came first, it rules the day (in the event that a Seller decided on this argument).

Lastly, let's be real. Who pays the commission is debatable. I won't be popular for this answer, but if you really think about it, who really pays. The buyer is either paying a little bit more for the home, due to the commission (even in the event of a FSBO, the seller often prices their home similiarly to listed homes thus, most buyers pay a commission... to the owner) OR the seller is taking less than he could (assuming you thought the home was worth what you are paying) have taken.

That's the pessimisstic engineer's view of things. Bottomline, your agent is there to look out for you and should advise you on when you might be in a situation to pay an extra commission (FSBO scenario).
Web Reference:  http://www.gahomesdigest.com
0 votes
Mr.P, , Arizona
Thu Jan 10, 2008
Hey Tia,
Sellers offer to pay a Buyer Broker. If you find a home you want and the seller is only paying 2.50% your buyers agent expects you to pay the .50%

You have a great point. If you sign a buyer broker agreement, and agree to pay your Buyers agent 3%. Then why should the seller pay anything when you allready agreed to pay the 3%.

I think that situation would be a 1 in a 10 million. So it could happen. It would be a conspiracy

However back in this market..Most sellers would be glad to pay 3% to get their home sold.

Now if you really want something to think about.
If the buyer is the only person who brings money to the deal.
Than how can you say that the seller is paying the buyer broker?
0 votes
Dave Rivera &…, Agent, San Francisco, CA
Thu Jan 10, 2008
Hi Tia,
Beware of "free money" as it is seldom free. The rebate agent representing the buyer of one of my listings didn't bother to negotiate a good deal for her clients, and cost them more than she ever gave them back in a rebate...
0 votes
Brian, Both Buyer And Seller, California
Thu Jan 10, 2008
From my understanding a buyer does not pay anthing in regards to commission. Their fees come from the seller.

FYI--You can however get rebates (cash back) if your agent is a discount/rebate agent. Full price agents hate it when I make such comments but hey its free money.

The websites I know that do this are http://www.eperks.com and Redfin. I've heard eperks.com is better because they are actual agents rather then someone that is just licensed to give an offer.

Good luck.
Web Reference:  http://www.eperks.com
0 votes
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