Do Buyers or Sellers Pay the Buyer’s Agent?
This has caused a great deal of confusion among consumers. Generally, a listing agreement between a seller and the seller’s listing agent states how much the listing brokerage will pay the selling brokerage for bringing a buyer.
Yes, you read that correctly. The seller, in effect, pays your buyer’s agent to negotiate on behalf of the buyer, not the seller. It does NOT increase the amount the buyer will pay for the home because the seller has ALREADY contractually agreed to how much commission they will pay to sell their home. So whether there are 2 agents or 1 agent involved the buyer pays the same price for the home.
Many buyers, thinking they will save money by buying from the listing agent, end up paying the same price or greater because nobody was negotiating for them as the listing agent legally works for the seller. The seller still paid the same amount of commission with the only difference being it all went to the one agent and was not split between two.
When home buyers sign our buyer agreements, we do not ask them to be responsible for paying us and we put that in writing. We just want to make sure that buyer buys the home from us so we can make an honest living after working with them for so long.
Therefore, as a buyer, you get professional home selecting advise, negotiating help, and protection throughout the buying process with proper inspections and due diligence all paid by the seller of the property. We do require a $250 administration fee on owner finance homes due to the extra legal forms required. This fee is only due at the closing of your new home.
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