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Niha
LIF Zygote
Member since 6/06 45 total posts
Name:
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RE commission
I was told by a realtor that if you list with an agent as a seller that the buyer is actually the one paying the commission. Is this a sales pitch to get us to list with her? Anyone know who actually writes the check to the realtor at the end? It doesn't make sense to me, if we sell our coop for $250K, and the commission is 4%, she's saying the buyer is paying the 250, so he/she is the one paying the agent. 
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Posted 6/26/06 8:23 AM  |
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Prudential Douglas Elliman Real Estate
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danielleandscott
My new 71 Super Beetle
Member since 5/05 13476 total posts
Name:
Scott
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Re: RE commission
I believe that the seller pays the commission. If she is working for you then you pay as the seller, but if she is working for the buyer, then the buyer pays her commission. She has to tell you up front who she will be working for and who will be paying her commission
Scott
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| Posted 6/26/06 8:30 AM |
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MrsSchwags
Soccer Baseball Lax Mom
Member since 10/05 11240 total posts
Name:
Jennifer
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Re: RE commission
Thats why we didn't limit ourselves to one agent. Some people say there is an advantage to having an agent, however I didn't want to pay commission. When we looked for houses, we contacted whoever was listed on the house.
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| Posted 6/26/06 8:41 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: RE commission
Wow, that's double speak.
The commission is deducted from the sale price of the home. You are getting 4% less than the sale price and that's how the realtor gets paid.
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| Posted 6/26/06 8:52 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: RE commission
Posted by Niha
I was told by a realtor that if you list with an agent as a seller that the buyer is actually the one paying the commission. Is this a sales pitch to get us to list with her? Anyone know who actually writes the check to the realtor at the end? It doesn't make sense to me, if we sell our coop for $250K, and the commission is 4%, she's saying the buyer is paying the 250, so he/she is the one paying the agent.
It sounds to me like a play on words...the buyer pays the sale price, of which 4% is given to the agent as commission. But...at the end of the day the seller has paid the commission because the seller has to take it out of their sale price. If the buyer was paying the commission...they would be writing a separate check over and above the sale price.
Buyers never pay the commission unless they have a buyer broker agreement with an agent in writing.
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| Posted 6/26/06 9:22 AM |
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danielleandscott
My new 71 Super Beetle
Member since 5/05 13476 total posts
Name:
Scott
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Re: RE commission
If the real estate agent is hired by the buyer, then the buyer pays the comission - If the real estate agent is hired by the seller then the Seller pays the comission. I learned this in real estate school
Scott
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| Posted 6/26/06 9:43 AM |
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My2Boys
Love.
Member since 10/05 4796 total posts
Name:
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Re: RE commission
Posted by Blu-ize
Wow, that's double speak.
The commission is deducted from the sale price of the home. You are getting 4% less than the sale price and that's how the realtor gets paid.
Exactly. You're paying the commission, Niha. Freakin' brokers. 
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| Posted 6/26/06 9:54 AM |
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wcs3504
my boys
Member since 2/06 2506 total posts
Name:
Wanda (formerly cw0904 on LIW)
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Re: RE commission
If say an agent sends me a listing, it is not her listing and we end up buying that house, do we as the buyer pay for the commission then or does the seller pay for it?
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| Posted 6/26/06 9:43 PM |
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Diana1215
Living on a prayer!!!
Member since 10/05 29450 total posts
Name:
Diana
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Re: RE commission
Posted by wcs3504
If say an agent sends me a listing, it is not her listing and we end up buying that house, do we as the buyer pay for the commission then or does the seller pay for it?
Ang described it perfectly above. For example let's say you are buying a house for 500,000. You pay 500K to the seller. You have no idea what commission either of the agents make. But - now let's say that the seller gave the listing agent the listing - at 4% (which is 20,000) -- the listing agent gives a % out to the agent who is bringing in the buyer - let's say 2%. So the listing agent gets 10K and the selling broker also gets 10K.
Technically as the buyer you are still paying 500K --- and the seller is paying the commissions out of that - so the seller is walking away with 480K.
I hope that helped.
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| Posted 6/26/06 9:54 PM |
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wcs3504
my boys
Member since 2/06 2506 total posts
Name:
Wanda (formerly cw0904 on LIW)
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Re: RE commission
Thanks Diana for the explanation. I understand now. 
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| Posted 6/28/06 11:41 PM |
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