A classic question. In the overwhelming majority of transactions the seller pays the buyer's agent with money that the seller got from the buyer.
Shot sale or REO has nothing to do with it.
You are only required to do what is in the contracts that you have signed. READ THEM CAREFULLY.
A buyer's rebate does indeed mean that the buyer's agent is giving up some commission to the buyer. They are still common on new construction. They were very common on all sales in 2005 to 2007 and look where that got us! Lot's of great advice to buyers in those years. Remember, you get what you pay for . If your buyer's agent is making peanuts on the deal, do you think you will get a monkey or a serious professional?
Your agent may have put in a minimum percentage amount for the commission and that if it is not x% that buyer should pay the difference. Before signing any contracts you should read carefully and remember every thing is negotiable
All good answers below...
If you have a commission share agreement with a buyer's agent, it would depend on the details of that agreement whether or not you'll get part of your agent's commission. I suppose it's possible if you decide to buy a low priced property that your agreement would require you to pay your agent additional commission. There is little commission on a $50k property so it wouldn't be unreasonable for an agent to require that you compensate her above the amount paid by the seller.
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All the best,
Alma Rose Kee, PA
Future Home Realty
Hope this helps!
Debbie Albert, PA
Keller Williams of the Treasure Coast
Almost always the buyer's agent is paid through the seller's funds on the closing statement. You will find agents who ask potential buyers's to sign a buyers broker agreement which may require the buyer to pay that agent under certain circumstances. These agreements I would be very careful of and require a thorough review and explanation. I advise most buyers to walk away from them in almost every case.
REO's and shorts sales are no different.
The very best of luck and I hope this information is helpful. If I can provide and further help please feel free to contact me at your convenience.
Best wishes for a healthy, happy and prosperous New Year!
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
This should be stipulated on the listing of the property along with the Contract for Sale and Purchase. Any agreements with the commission on the sale side should be in writing between you and the broker.