Home Buying in 34604>Question Details

Diana, Home Buyer in Tampa, FL

Who pays for the buyer's agent? If you're looking to buy an REO or short sale, does the bank pay the buyer's agent's commission?

Asked by Diana, Tampa, FL Fri Dec 31, 2010

Does the buyer pay? As a buyer, am I required to bring additional funds and cut a check to my agent at the closing? What if there's a buyer's rebate? Does that mean the agent in essence is giving up some commission to you (the buyer)? Does it work differently if you're a buyer looking to buy an REO or short sale? Thanks!!!

Help the community by answering this question:


Hi Diana,

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?
1 vote Thank Flag Link Sat Jan 1, 2011
Hi Diana,

Happy New Year!

That would all depend on the agreement you have with your agent. You should refer to to the paperwork that you signed with them.
1 vote Thank Flag Link Fri Dec 31, 2010
Diana, Read your buyer agency contract carefully. Most agents mention that they will take the amount offered in mls .which is typically paid by seller to listing agent who splits it with buyer agent.
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
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sat Jan 1, 2011
Hi Diana,

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.

If you would like to browse properties in Tampa Bay and are not already working with a Realtor, you're welcome to sign up for a ListingBook account on my website for free:


All the best,
Alma Rose Kee, PA
Future Home Realty
0 votes Thank Flag Link Sat Jan 1, 2011
The selling side pays commissions. The selling side can be an individual OR a bank. As in any other real estate transaction, there are points of negotiation. Not all sellers will pay closing costs for the buyer for example. There are many things that are considered, mostly centering on liens and other encombrances that are on the property and what is the bottom line that the seller is willing to pocket after the sale.

Hope this helps!

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Sat Jan 1, 2011

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
561 308-0175
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Sat Jan 1, 2011
In ordinary circumstances the commission for a short sale, REO or private sale is paid by the seller to both the broker on the list side and the broker on the sale side.
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.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sat Jan 1, 2011
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