when i ask a realtor to sell my house and he does, do i pay his 6 percent fee or does the buyer?

Asked by Betty, Tennessee Fri Apr 30, 2010

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Antolin Du B…, Other Pro, New York, NY
Thu Jun 21, 2012
You pay it but probably he got you a higher price, so likely the buyer paid your fee.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat May 1, 2010
All commissions are negotiable between you and your agent, there are no set standard coomissions--the seller(s) negotiates the commission with his/her agent--that commission is paid out at closing from the proceeds of the sale--if two agents are involved in the sale the commission is split.
0 votes
Jeanne Feeni…, Agent, Warren, NJ
Fri Apr 30, 2010
Everybody is right - commission comes out of the proceeds of the sale, seller pays it, and I suppose you could extrapolate from there that since the buyer is bringing the proceeds, the buyer is paying.

But let's keep it simple, the seller pays commission.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
0 votes
Dan Chase, Home Buyer, Texas City, TX
Fri Apr 30, 2010
Betty, expect your check after closing to arrive minus that 6% (or whatever you agree to). Who pays for it? Who cares, it comes out of the sales price you receive regardless.
0 votes
Voices Member, , Benton County, OR
Fri Apr 30, 2010
Betty

First..Commissions are negotiable and 6% is not a % written in stone.

Commission is an illusion it seems to me.
.You tell the Buyer don't worry about the Commission the Seller pays it and you tell the Seller to just include the commission in the Price and the Buyer pays it.

Everybody thinks the Agent is paid for by the other party to the deal.....The illusion works great until the type of Market we have now comes along and people are selling at a loss and the buyer pool has a large group who is questioning each expense/cost in pursuit of the Deal!.

The simplistic view.....
They buy and pay, then the money is put on the table (Price paid) the Commission is paid and split however between the Agents/Brokers, costs ect and the seller gets what's left..( 0 seems to be the case often enough to be taken into consideration ;)

So who's money is on the table? Yours or the Buyers?...Whatever answer you arrive at for that question will determine your view of who pays the Agents IMHO.

A seller in ideal conditions wants X amount from the sale for them personally.
That seller does not then list and sell at X amount, they add expected expenses (like commission), then they'll mark it up 10-15% so they can negotiate or maybe get lucky & eventually they arrive at Y amount for a sales price...

Yes the Seller pays the Commission but where does the Seller get the money to pay the Agents Commission? .....From the sale.
So which one is it... the chicken or the egg?

Be aware of your rights and options
Dept of Justice on Commissions......http://www.justice.gov/atr/public/real_estate/index.htm

Good luck
Dunes
0 votes
Patrick Thies, Agent, Anytown, IL
Fri Apr 30, 2010
A seller agrees to pay X% of the sale price to a listing agent to market their home. The listing agent offers X% to any buyers agent that sells the home. The money comes from the sellers proceeds. Some will say that it is actually the buyer who pays the comission because they are the ones who are putting up the money.

The truth is the comission is factored into the list price. Out of the agreed upon sale price, the seller pays for the title, survey, any transfer fees, tax credits, attorney fees and comission.

When the buyer goes to sell, they will have the same expenses and the cycle continues. The value that the homes has is not the agreed upon sale price minus the comission and other fees, it's the whatever the house sold for that is considered the market value. (There is a little more to it than that, but that's the jist of it)
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