Who Pays The Buyer's Agent Commission in A Real Estate Trans

Tyler Wood from Coldwell Banker in Big Bear Lake discusses the commission structure for buyer's agents in a standard real estate transaction & who pays it.

Category:

Education

Tags:

• short
• sale
• foreclosure
• bank
• owned
• real
• estate
• big
• bear

[trampolini1]

BLAH BLAH BLAH. If you are the buyers agent the buyer should pay you independent of the deal, or proceeds. You approach the Seller and say I am the Buyers agent, means you're representing their interest. Agents have the gall to state or take this position and then say, my commission comes from proceeds. Proceeds are from the value of the Seller's home. If an agent has a contract with the Buyer, the buyer should pay. It's always the deal which pays the agent, dual agency is what this is called.

[whowood1]

@trampolini1 Yeah, sounds great in theory. Yet, very few buyers are willing to pay their agent that way. If they were, it would already be happening on a wider scale. People have been talking about that for the past 5 years, and various companies have tried it, yet the real estate industry still remains relatively the same. If consumers really wanted it that way, then it would happen. Blah, Blah Blah

[homerj7g]

I would think that a listing agent would be much more likely to encourage a buyer to accept an offer from a buyer with no agent because they would get nearly double the commission. This would in effect give buyers with no agents an advantage in actually getting a house, at the risk of possibly paying too much.

It makes much more sense to me if the buyer pays the buyers agent directly. All sorts of conflicts of interest arise when a service is paid for by someone other than the "servee".

[whowood1]

@homerj7g very valid point. I've heard this for the past 2-3 years but it does not appear to have much traction in the industry. Consumers have not demanded it either. There are a lot of things in the real estate industry that do not make much sense unfortunately.

[jvolstad]

The truth is usually very simple

[whowood1]

Thanks for the education. It all makes sense to me know.

[whowood1]

That's a pretty simplistic stereotype

[jvolstad]

The real bottom line is that RE agents, either listing or so called buyer agents, represent one person and one person only: Themselves.

[whowood1]

Hey jvolstad, thanks for the comment.

There's more to using a buyer's agent than just MLS access. You cannot substitute having access to the MLS listings with years of experience that some agents have. Just being able to go online and look at properties is one piece of the buying puzzle. Sure, for those that have the time to research online, they will become more informed. But I can guarantee they will not have the knowledge of an experienced agent working the market everyday.

[jvolstad]

Buyers agent? Why waste the money. With today's technology, a buyer can search the MLS.