Question removed

Asked by Jack, Colorado Tue Aug 19, 2008

This question was removed by its author.

Answers

7
Sandra Potter…, , 80123
Tue Aug 19, 2008
Hi Jack,
Compensation is negotiable and not a set rate. However, it depends on what type of property you are looking for and what the price range may be when the agent decides if doing business is worth their time. For example, If you are looking at a $20,000 dollar lot, a buyer's agent may get $560.00 (at a 2.8% co op from the listing agent). One percent of $20,000 is $200.00 and with the price of gas these days, the compensation is reduced depending on driving time and additionally, the broker may owe 30% of that to the company they are working for. If you are working with FSBOs, that could be another reason for charging more, maybe the agent is splitting the commission costs between yourself and the seller. Just ask the agent if that is the case, communication is always the best way of understanding any part of a real estate transaction.

Best of luck.
Sandra Potter, CRS, GRI
Prudential Colorado Real Estate
Cherry Creek
360 S. Monroe St., Suite 500
Denver, CO 80209
spotter1997@msn.com
1 vote
Kristal Kraft, Agent, Greenwood Village, CO
Fri Jan 16, 2009
Interesting! I've never heard of such a thing, but that doesn't mean someone won't try it. As brokers we set a fee for which we expect to get when the property closes. Sometimes the fee offered to the selling agent is less than that agreed upon fee between the buyer's agent and the buyer. i.e. For Sale By Owner. If that is the case, then the buyer is responsible for compensating the agent for their work. Fair is fair, we all need to get paid.

The key here is an upfront discussion and understanding of how the process works. Surprises are only good you your birthday, not at the closing table.

Good luck with your transaction.
0 votes
The Kinslow…, Agent, Centennial, CO
Tue Jan 13, 2009
Hello Jack,

I agree with the other answers. When working as a Buyer's agent, I have never charged a Buyer anything. The only time I would see the need is with a FSBO (for sale by owner property) but the owners of the FSBO 99% of the time are more then happy to pay the Buyer's agent commission to get their home Sold. Doing a little research, like you're doing now and interviewing a few Realtors, will help you tremendously. Have fun looking for your new home!

Sandy
0 votes
Marjie Schwa…, Agent, Castle Rock, CO
Fri Nov 21, 2008
Normally a buyer's agent is paid about 2.8% by the seller, and the buyer does not pay the Buyer Agent. The buyer's agent may charge a "success fee" if the buyer wants to buy a FSBO or some other type of property where there is little or compensation for the agent. This should be spelled out in the Buyer-Broker Right to Buy contract. Be sure to discuss this with any broker that you are considering.
0 votes
Kurt Thomas, , 81501
Wed Aug 20, 2008
Bill and Sandra had great answers! I have never charged a buyer one red cent and dont know why any other Realtor would. The co-op offered by the sellers agent is where we get our hard earned paycheck from. The only case I could see where I would concider asking my buyer to pay a fee out of his/her pocket is if they decided to purchase from a FSBO that refused to compensate me for my services.
Just one opinion to take into account, as alwayse I suggest that you interview at least two and even better three agents to see how well the two of you click. The buyers agent that you do hire will of course be keeping your best interests in mind and have a fiduciary duty to you, so be sure about your choice.
Good Luck!
Thanks for the question!
0 votes
The Hagley G…, Agent, Pleasanton, CA
Tue Aug 19, 2008
I love the idea of a "success fee." It's kind of funny if you think about it. Often sellers will go for broker or the Realtor that tells them they can get a higher price for the home and offer the lowest commission. Maybe those of us that our honest about pricing and know our value are ultimately earning a "success fee?"
Web Reference:  http://www.cindihagley.com
0 votes
Jason Burch, , Boulder, CO
Tue Aug 19, 2008
I do not charge any additional sucess fee to the buyer and would be happy to help you through your negotiation process at no charge. I have excellent referrals. Please contact me at 720-352-9038.
Jason Burch
Homestead Real Estate
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Parker Zip Codes

Email me when…

Learn more