keefe27, Home Buyer in Conway, NH

What should I expect to pay for a buyer's agent fee?

Asked by keefe27, Conway, NH Fri Jun 1, 2012

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5
Chuck Braxton, Agent, Meredith, NH
Mon Dec 3, 2012
Hello,

I agree with Steve. Although I have come across brokerages that expect to get paid a certain amount regardless of the offer of cooperation to brokerages bringing a buyer, in my real estate practice at Roche Realty Group, we always derive the fee for buyer agency services from the seller at closing. In the event that we represent a buyer in a transaction with an unrepresented seller (FSBO) or find a property solely through our efforts (agency or buyer), then unless the seller agrees to pay us a fee, we structure offers so that the seller credits a certain amount to the buyer at closing for the buyer agency fee and since the agency is not party to the Purchase & Sales Agreement, our arrangement with the buyer enables payment to occur at closing. Glad to show you what that looks like in a buyer agency agreement.

Chuck Braxton, REALTOR GRI
Roche Realty Group, Inc.
cbraxton@metrocast.net
63/677-2154
0 votes
Steve Anders…, Agent, North Conway, NH
Mon Dec 3, 2012
Hello Keefe,

My name is Steve Anderson and I'm with Pinkham Real Estate in North Conway. You should not have to pay any fee for Buyer brokerage. Any fees we procure from a sale as a Buyer rep. comes solely from the Sellers side and is never added into the purchase price.

I would be more than happy to answer any other questions you may have about real estate transactions and also help with a property search if needed. You can reach me at steve@pinkhamrealestate.com.

I look forward to hearing from you, or anyone else that has a question.

Thanks,

Steve Anderson
0 votes
Mike Sullivan, Agent, Gainesville, FL
Wed Jul 4, 2012
Buyers agent fees, like everything else in real estate, are negotiable! Generally if the seller has agreed to pay a commission, you pay nothing for the buyers agent. In some cases there will be a certain % established, as defined in the buyers agent agreement...this is particularly helpful in the case of a for sale by owner, where the owner does not want to pay a commission. In other cases, the buyers agend may charge a flat fee.....all of this needs to be agreed upon prior to beginnning your home search.....

Having a buyers agent provides you the best service possible, in that you agree to use a specific agent, and they know they are working with a serious, and committed buyer.
0 votes
Chuck Braxton, Agent, Meredith, NH
Wed Jul 4, 2012
Hello:

How buyer representation is practiced varies among brokerages or agents so this is a great lead-in to getting the best service possible.

I am going to speak in general terms as there are several things that may create a range of fees.

Some buyers who live outside the area may rely upon their agent to preview properties prior to their visit(s) and do additional evaluation and analysis before coming to view property. This can save an out-of-area buyer a lot of time especially if the wants and needs tend to create a broad search area. This is often the case with buyers seeking commercial properties (e.g. bed & breakfast inns, etc.) or large tracts of land offering views, agricultural or timber harvesting potential. This can be especially helpful to understand the locale of a property such as in pastoral areas where a neighbor may have elected to display of their assets in the front yard in a permanent standing collection. Given the time saved as a result of the agent's work, the fee may reflect the value delivered and may be partly paid up front instead of at closing.

Some agents practice buyer agency with the expectation that the buyer will pay a set fee regardless. Others structure their relationships so that all fees due the agency for buyer representation are paid by the seller at closing. In the first case, that may result in you being obligated to pay your buyer agent some money at closing. Other agents are willing to accept the listing brokerages' offer of cooperation as payment in full for those properties in the multiple listing service in which case you would not have an additional obligation to your buyer's agent. In these situation, your buyer agent may negotiate with the listing agent to ensure that the total commission is shared fairly and evenly, but that does not affect your costs.

You might want to know how your buyer agent will handle any incentive payment offered by a seller. Such bonuses generally need to be disclosed to all parties so it is reasonable to have your buyer agent explain how you will participate.

In addition to multiple listing offerings, experienced buyer agents will expect to represent you in purchasing property from unrepresented sellers (FSBOs) as well as in pursuing candidate properties that are located by the efforts of you and/or your agent. You will want to be made aware of any arrangement between these sellers and your agent's brokerage.

If you are not agreeing to pay a set fee to the buyer agency or want to ensure that the seller will always pay your buyer agent's fee at closing, then there are ways to make your offer to purchase property so that this occurs. Experienced buyer agents will guide you through this.

If you are buying a foreclosure or a property where the seller is doing a short sale having a experienced buyer agent is invaluable. Because you may not know whether the home you fall in love with will turn out to be a foreclosure or short sale, but sure to evaluate agents' experience in these types of transactions.

I trust that this information is helpful in evaluating buyer agents. Give me a call if you have any questions.

Warm Regards,

Chuck Braxton, REALTOR
603/677-2154
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Jun 2, 2012
Most agents do not charge anything extra for a buyer broker fee. They get paid the percentage offered in MLS by the listing agent. Depending on your contract, you may have to pay a very small percentage additional if the fee offered is low. If you need help finding an agent, I have some great agents I have worked with in the Conway area.
Web Reference:  http://www.ScottSellsNH.com
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