if i buy a home that is listed by my realtor, does the seller get a break on how much commission they have to pay?

Asked by Durango Resident, Durango, CO Mon Jan 30, 2012

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Mack McCoy, Agent, Seattle, WA
Mon Jan 30, 2012
Not necessarily.

The typical brokerage arrangement with a seller is that the seller will pay a certain commission to the listing broker, for the sake of discussion, let's say 100%.

So the listing broker gets 100% when they sell the house. But, they know that other agents may have a buyer for the property, so to facilitate a quicker sale - so that they don't have to go and find the buyer themselves - they offer to share the commission with a member who has the buyer.

As it turns out, the listing broker in this case had to find the buyer themselves, in which case, they have earned the commission and need not share it with anyone.
1 vote
Claudia Will…, Agent, Durango, CO
Tue Jan 31, 2012
It depends on the realtor and his/her relationship to the seller. Sometimes they will negotiate with the seller but often not. I'd say it's worth trying to find a good buyer's agent to work on your behalf! Call me and I'd be happy to discuss the options with you - no obligation of course.
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Linda Crowth…, Agent, Durango, CO
Tue Jan 31, 2012
Generally speaking the Seller is paying the commission. (although this is not always the case). Sometime the Broker will make a concession to the Seller if that agent has both the listing side commission and the selling side commission. The thinking behind giving a commission break is that the Broker actually ends up as neither an agent of the Buyer nor an agent for the Seller, and becomes just a Transaction Broker. So, it is a trade off. Linda Crowther, Keller Williams 970-749-2088
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Don Tepper, Agent, Burke, VA
Mon Jan 30, 2012

Not unless the seller and the listing agent agreed to such a discount at the time of the listing. That sometimes happens, but it's relatively rare. (All commissions are negotiable, so there's nothing wrong with such an arrangement. It's just that usually that's not addressed.)

But the point is: Whatever the arrangement is, it's already agreed to. It's already worked out between the seller and the Realtor. You don't have any negotiating room--presuming that the seller will save some money and that you, in turn, can get a lower price--at that point.

Hope that helps.
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Hollie Dowd, Agent, Durango, CO
Mon Jan 30, 2012
There are many negotiations that can happen here! The Realtor could approach the Seller, as part of the negotiation.

Keep something in mind...your Realtor is going to receive both sides of the commission, and if the home is listed with your Realtor, and he/she is representing you as well, legally, in the state of Colorado, your Realtor may need to back away as YOUR REALTOR, and become a "Transaction Broker (TB)". There is no dual representation in Colorado...there is in some states, but not here!
Or there are also other scenarios that may be available to either you or the Seller. "TB essentially means, your Realtor must be impartial towards both parties. With a purchase as important as this one, you will now either take everything into your own hands, or hire an attorney.

Listing agents are usually very knowledgeable about their properties (listed), but they were originally the SELLER's representatives. They will disclose everything they know, and whatever the Seller has told them.
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Wendell Qual…, Agent, durango, CO
Mon Jan 30, 2012
There "may" be a reduced commission to the Seller if the Selling Broker is also working with the Buyer and does not have to pay a Cooperating Broker a commission. The parties may have agreed to a reduced commission at the time of the listing. There is not a set amount, but I will often offer a 1/2%-11/2% reduction, depending on the property and the commission for the property.
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Robyn Kirk-S…, Agent, Chesapeake, VA
Mon Jan 30, 2012
Hello Durango,

That is totally dependent upon the terms of the Realtor and the Sellers listing agreement. Sometimes the Seller will pay a reduced commission but there is no "standard" in that aspect. Many times there is no reduction. Keep in mind that when your Realtor does represent both of you; he or she is doing the job of two.
Hope that answer helps.

All the best,
Robyn Kirk-Stacey
Re/Max Alpha Realty
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Leanne Austin, Agent, Riverside, CA
Mon Jan 30, 2012
The amount of commision that is paid out by the seller is always a negotciable item, but is decided upon at the time of the listing. Most agents will offer a price break to the seller should they (the agent) bring in the buyer. This practice I sure will vary from agent to agent and transaction to transaction.
Hope this helps you......
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