If we purchase a forclosed home from the bank using a realtors services, who pays the realtor?

Asked by S Balonek, Elba, NY Mon Aug 4, 2008

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Andrea Mills, Agent, Sebring, FL
Sat Nov 15, 2008
When you purchase a foreclosed home using a Realtor the bank pays the commission to the listing agent, who then splits the commission as offered in the MLS. This is if the foreclosure is listed with a Realtor.

In case you are looking at purchasing a REO that is NOT listed with a Realtor, you or your agent should contact the bank/owner to ask and/or negotiate a commission.
0 votes
Mike Lewis, , Sebring, FL
Fri Nov 14, 2008
When a property is listed For Sale the seller commission due is general determined at that point...either a flat fee or sale price percentage. This is generally paid by the seller in accordance with the listing agreement. However, all fees are negotiable in an Offer to Purchase. Buyers, Sellers & Agents have the option to negotiate commissions paid/due at the time of an offer. I welcome the opportunity to review your intent to purchase and assist in anyway I can. I hope this info helps...If you have aditional questions please do not hesitate to call me 863-368-1697...Or you may visit http://www.HometownHi-Lights.com Mike Lewis
0 votes
, , 54942
Mon Aug 4, 2008
The bank (seller) pays a commission to the Company who is listing the property. If you write the offer with a different Realtor their company will be paid (a portion of that commission) by the listing Broker. If you write the offer with the Realtor listing the property their company receives they entire commission. The brokers for the companies then pay the Realtors a portion of the commissions which can vary (usually 50% to 90%). Also if a foreclosed property is listed through a Real Estate Company you can not purchase it directly from the bank.
0 votes
Myke Atwater, Agent, Santa Rosa Beach, FL
Mon Aug 4, 2008
I would recommend that you use a realtor to deal with the selling party. The selling side pays the commission for the transaction in almost every case. So, as the buyer, protect yourself, use a licensed realtor, and don't worry about the commission--that is someone else's concern. Happy house hunting!
Web Reference:  http://www.MykeTriebold.com
0 votes
Don Tepper, Agent, Burke, VA
Mon Aug 4, 2008
Usually the bank. However, the bank doesn't always pay the full commission, and it's possible you may work with a Realtor who will specify a minimum commission so that, if the bank doesn't pay your agent's share, you might (per the agreement you sign) be obligated to pay some.

That's an issue you should discuss with your Realtor.
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Linda & Ken…, Agent, Oregon City, OR
Mon Aug 4, 2008
In Oregon, the Realtor's commission is always deducted from the seller's proceeds. You might make the philosophical case that all of the money in a real estate transaction comes from the buyer, but it still is the seller who pays the bill. When a seller accepts your offer, he accepts the responsibility to pay the commission.
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Jeff and Gin…, Agent, Vero Beach, FL
Mon Aug 4, 2008
Almost always, the seller - the bank - pays the Realtor unless you contract for special services with a Buyer's Agent. Some Realtors may ask for some commission from you also, but that is not typical. Ask the Realtors you interview. It is normal and expected to ask a Realtor to explain their compensation plan for working with you. Banks expect you to work with a Realtor because they do not show properties, write offers, and so forth for you. They usually hire a Realtor to market their properties for sale also. The commission the bank pays would be split between the two Realtors unless you choose to work with the same Realtor. Just be sure you clearly understand that type of dual brokerage representation. Good luck.
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Sj209, Both Buyer And Seller, California
Mon Aug 4, 2008
It depends on how your agreement is written but in most cases the seller pays the realtor.
0 votes
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