Who Pays the "buyers"agent?

Asked by Kelli&troy, Hallsville, MO Tue Oct 4, 2011

the property we want to look at is listed by a "seller" whom I do not trust. so we would like to look at the home thru another agent who would be our "buyers" agent. Does the commission from the house get split between the two, or do i need to cough up some MORE money to pay the agent we go thru.

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Marc White, Agent, Charlotte, NC
Tue Oct 4, 2011
Brenda is right on tract...have an agent contact the Seller and get an agreed commission amount settled upfront before showing you the home. Your agent will allow a great medium between you and this untrustworthy seller.
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Don Tepper, Agent, Burke, VA
Tue Oct 4, 2011
Generally, the seller pays the buyer's agent. Here's how it often works:

The seller signs a listing agreement with the listing agent. The seller agrees to pay x% commission to the listing agent if the house is sold. The listing agreement also will identify what happens to that commission if there's another agent (a buyer's agent) involved. Hypothetically, because it's fully negotiable, the seller might agree to pay the listing agent 6%. That 6% would be split--3% to the listing agent and 3% to the buyer's agent--if a buyer's agent is involved.

That's the way it often works.

But, because it's all negotiable, maybe the seller says that the buyer's agent will receive more (or less). You'll sometimes see an incentive, such as a 1% bonus, to the buyer's agent to encourage buyer's agents to bring potential buyers past the house. Sometimes the listing agent is willing to take less, so the commission might be 5%, with 3% to the buyer's agent. Sometimes--particularly with FSBOs (for sale by owner)--the seller is willing to pay a buyer's agent 2%-3%. Sometimes FSBOs absolutely refuse to pay any commission. That's their right. So an agent might show you a FSBO property, but might expect for you to pay the commission. The listing agent should make this crystal clear up-front.

So there are plenty of ways it can work out. But, bottom line: Usually you don't "neet to cough up some MORE money" to pay your agent. But to determine that, get your own agent--and that's a wise move--and discuss that with him/her at the beginning. You absolutely do not want to deal directly with the seller's agent. (Understand, in many states it's legal and done property is entirely ethical on the part of the agent. But to best represent your interests, you really need your own agent.)

Hope that helps.
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Brenda Feria, Agent, Richmond, VA
Tue Oct 4, 2011
Kelli & Troy, A home listed by a seller can mean that the seller is not willing to pay commission for the buyer's agent, and especially in this case where you know the seller and do not trust him. You can always add the agreed commission to the price of the house and go from there. Let your agent make the call to the seller and get the commission payment out of the way up front. Anything that is agreed upon verbally should be put in writing with a one-time showing agreement with the seller. As long as it appraises, there should be no problem.
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Abu Musa, Agent, New York, NY
Tue Oct 4, 2011
In New York buyer's agents almost always get paid by seller.Please interview your agent before working with the agent and make sure you may ask this questions.Thank you.
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Scott Godzyk, Agent, Manchester, NH
Tue Oct 4, 2011
Commission to hire a buyers agent is negotiable. most agents do not charge you anything additional although some may. Most buyer agents will get paid a fee listed in the MLS by the listing agent. Make sure you interview a buyer agent, make sure they are expereinced with the area you like and can provide you with services that will assit you in buying the home you want.
Web Reference:  http://www.ScottSellsNH.com
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