How does the buyer agent's compensation work?

Asked by N Davis, Ridgewood, NJ Sun Jan 18, 2009

How does the buyer agent's compensation work? Is it a common practice to engage more than one buyer's agent at once for two different areas?

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7
Margaret PEG…, , 10965
Sun Jan 18, 2009
Hi Neena, The buyer's agent is paid when a sale closes. Each individual listing has its own commission that is offered by the seller. In some cases the buyer may also compensate the buyer's agent if it agreed upon beforehand with a written contract. Usually agents work in the whole county and sometimes in the adjoining counties as well. It's best to stick with one agent and to even sign an exclusive buyer's agency contract. This ensures that the agent is working for you and for your best interests. My buyers that are working exclusively with me get the new listings the minute they hit the market. Buyers that are working with more than one agent won't get that kind of service.
2 votes
Dorene Slavi…, Agent, Torrance, CA
Fri Apr 29, 2011
Hi N,
Well, at this point in time, both agents in a transaction are paid by the seller. The seller of the property makes the decision on what compensation to offer when they put thier home on the market.
Occasionally the buyer will be responsible for their "Buyer Agent's" commission, but this is only under unusual circumstances and will be outlined in the "Buyer Broker Agreement" contract.
It is possible this might change in the future, with each party ( buyer and seller) paying for their agent's time.
Web Reference:  http://www.doreneslavitz.com
0 votes
Christopher…, Agent, Tarrytown, NY
Fri Apr 29, 2011
Hi, Typically in NY the seller pays the comission to the sellers agent at the closing. It then gets split between the sellers agent and buyers agent. If you do work with a buyers agent and have an "exclusive right to represent" contract in place there is a section where the buyer can pay the agent. If this is done the buyers agent must disclose that they are receiveing compensation from their client as well as the seller. I have had clients add a bonus into our agreement, there's many ways to do it. But usually it comes from the sellers side. I'm not sure how far apart the two areas are that you mentioned. If they are inside the same county then your agent should be able to handle that. I would ask your egtn if they have any knowledge of the second area.

Hi Bruce, Typically I give my customers/clinets three to choose from...

1) George Fumalare - All County Inspections - 917.453.0676
2) Thomas Blake - 914.533.2034 or 203.445.9079
3) Carnell - Engineers - 914.946.4300

I have personally worked with all three and they come highly recommended.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
Web Reference:  http://raveis.com/chrispagli
0 votes
allan erps,A…, Agent, Pearl River, NY
Thu Apr 2, 2009
Hello Neena, Just letting you know again that the Buyers Agent is compensated by the Seller and does not effect your side financially. Having lived in Nanuet for well over 20 years you really should feel comfortable with one Agent and use them exclusively. Also an Agent having an ABR(Accredited Buyers Representative) title should give you the exclusive one on one dedicated service that you demand or require. By the way, it is possible to live in Nanuet and possibly be part of (4) different School Systems so do make sure of what you are looking for! Good luck with your Home Searching
0 votes
Mike Gorham, , Pearl River, NY
Sat Jan 24, 2009
Hi Neena- You have some great answers to browse through here, I am so glad to see so many of my peers helping you out. I feel that if you are looking in Rockland county you would only require 1 agent, it costs you nothing (unless they make you sign a contract) and the work of a buyers agent is priceless. I would only enlist the help of another agent if you are looking in another county. I would be up front with the agent as well and let them know where they stand. Happy hunting
0 votes
Michelle Qua…, , Clark, NJ
Thu Jan 22, 2009
No it's not the greatest idea to work with more then one agent- if you work exclusively with one agent that agent will work for you- if you use several agents you have no one really working for you nor do they want to find you the best deal (there's no loyalty if you use more then one agent). If you're unhappy with your buyers agent then yes find another but don't have 2 or 3 agents running around for you-it's just not right!
0 votes
Marty Remo, Agent, Central Valley, NY
Thu Jan 22, 2009
Buyers agents are compensated at the closing. Most of the time, the listing agency offers a co-broke to the buyer's agent. Meaning they are offering portion of the total commision that is paid by the seller.

Occassionally, buyers will choose to sign a exclusive buyers agreement. In this case the buyer may be responsible for all or a portion of the buyer's agent commission. In this market, most realtors are competing for buyers...this should not be necessary.

http://www.RemoRealty.com
Web Reference:  http://www.RemoRealty.com
0 votes
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