Is it normal for the buyer to pay commission of 6% to the listing and buying agents for a property? I have

Asked by Jeremy, San Francisco, CA Tue Jul 15, 2008

purchased properties outside California and never heard of this. As the seller I was obligated to pay the commission, not the other way around.

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Nate Serdy, , 94044
Tue Jul 15, 2008
It is not...Seller's are responsible for paying commission. You're in luck :)
2 votes
Mary Molina…, Agent, San Carlos, CA
Tue Jul 15, 2008
Hi there, commissions in the state of California are negotiable and typically paid for by the seller.
good luck - mary molinari coldwell banker.
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1 vote
RON DYCKS, Agent, Aguanga, CA
Wed Aug 28, 2013
Um , be careful of the "advice" you get here. Buyers can in FACT pay a commission as compensation for the acquisition of a target property.
Sellers who list their properties do typically sign an agreement to pay commission to both listing and selling agent, but this does NOT mean that a buyer cannot enter into a Buyer Representation Agreement with a Realtor/Real Estate Agent..

Some responses have stated, that it's the "seller's" responsibility, and there is NO such responsibility. What happens typically does not in and of itself mean it's required..

This is or can be more complicated than the aforementioned response but this IS, the basic answer.
0 votes
Herb Schmule…, Agent, Burlingame, CA
Thu Jul 24, 2008
It is not normal for a buyer to pay a listing commission.
There are; however, buyer broker agreements that ask the buyer to pay a commission, if for some reason they use a different agent. It protects and agent that has worked with you for 8 months, from some agent convincing you to switch to them at some Sunday open house and writing the offer. You don't really have to pay the commission to the orginal agent, you can simply have that agent who convinced you to let them write it for you pay what you would owe the original agent. make sense?
0 votes
;, , Riverhead, NY
Tue Jul 15, 2008
I've never heard of the buyer paying the selling fee for a home, either in NY or Colorado. That would be a really odd listing agreement. As a listing agent, in that circumstance, it would seem that the listing company would have to show 0 for a selling fee, and 0 for a buyers agent, with verbiage addressing that it is up to the listing company to obtain payment from the buyer. Was the house in the mls? It must be some kind of error. Is it your BUYERS AGENT requesting this? That would be even odder- I hope that someone clarifies a scenario in which it's normal to charge the buyer for the listing fee, in addition to the selling agent fee (or buyers agent fee). Who presented this arrangement to you, and was it in writing? Perhaps there was an agreement because of items that were paid for by the seller (financing, whatever)?
Your agent needs to explain this to you- I'm assuming that you are a buyer in this situation. You need an explanation before you agree to the arrangement- have a lawyer look at it, if the agent doesn't respond with something that makes sense (or is equitable to you).
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0 votes
Rob Weston &…, Agent, Bellingham, WA
Tue Jul 15, 2008
There is one thing to be careful of here, and that is the use of the word "standard". There is no standard, or there isn't supposed to be. All commissions are negotiable, always. The last agent was right on when she mentioned the multiple listing services. If you are a buyer and the property is listed, you don't really have a say in what the buyer or listing agents are going to get paid. If you are working with an agent and you are wanting to make an offer on an unlisted property or a “For Sale By Owner” you will need to negotiate with your agent as to what they get paid. If this is done in writing then this is a buyer's agent contract. The buyer’s agent will try to work it out that the seller pays the commission. What might be happening here is that two agents are trying to get paid for the work of one agent, i.e. one agent had an unlisted property in his or her pocket and told another agent and the agent had you as a buyer. The seller may not have agreed to pay a commission, so they put it on your side of the balance sheet. I can only speculate because I don't know all the circumstances. If I knew all the details, I could probably be of more assistance to your exact situation. Feel free to email me with more detail. I am intrigued. Do you have a buyer’s agent? If not you should have one to look after you and be able to answer these questions for you..... The real question is; Do you feel you are getting a "good deal" that you can be happy with, regardless of the commissions etc.? And, Do you want to continue with the sale?

Best Wishes,

Robert Weston
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0 votes
Lee Tate, Agent, Cleveland, TN
Tue Jul 15, 2008
Commissions are always and completely negotiable. They are usually established at the time of the listing agreement and paid at closing to the listing agent's broker who then splits it according to a pre-agreed broker-agent contract. If the home is placed in the multiple listing service, it is also usually agreed that the listing agent will share a portion of that commission with another licensed agent who brings the buyer. Buyers sometimes pay a commission where there is no commission offered such as in the case of a "for-sale-by-owner" if they utilize the services of a licensed agent to represent them in the transaction.
0 votes
Eric H. Wong , Agent, Albany, CA
Tue Jul 15, 2008
Hi Jeremy;
It might be different in other areas, but up here in Northern California, the Seller pays the commision out of his or her proceeds from the sale. In a way, the buyer is paying the commission through the Seller, but no the Buyer does not pay the commission directly here.
The only time I have seen the buyer pay a commission directly is when the Seller is representing himself, and there is no listing agent. In that case, the Buyer's agent may negotiate a commision with the buyer, but there would be no agent on the other side to pay.
So, I have no idea what is happening in your situation. It is not the norm.
0 votes
Arnie Kleins…, , Bozeman, MT
Tue Jul 15, 2008
Jeremy..The selling agent will normally offer a buyers agent fee. You will find that a buyer's agent may charge the buyer a commission. It is tough to support a family if you work for free. I have not heard of a buyer paying a commission for both the listing agent and the buyer's agent. It may also vary from area to area. The commission agreement is normally discussed in a buyer broker agreement which should be presented to you when you hire the agent. Good luck in the future.
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