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And it is for this reason I always have my Buyers sign a Buyer's Rep Agreement. I don't understand why people still proceed without this protection. We have our Sellers sign contracts but the Buyers are free to pay us if they choose????
Stevens Point, WI
Nina Hollander, Broker
Paul S. Henderson, RE...
Recently had one of my Buyer clients find a FSBO on their own, I negotiated the deal w/ the Seller for them, Buyers paid me and said it was worth every penny. Always get your Buyer broker agreement signed, I don't understand why so many agents risk working for free?
Stevens Point, WI
Nina Hollander, Broker
Falls Church, VA
Never had a buyer have to pay a commission and never been a big user of a buyer agreement. Those who do are better for it!
Val - Fortunately I have never had to deal with that, and hope I never do.
If a situation ever comes up where a seller/listing agent will not provide a co-broke commission to the buyer's agent, then that is where you need a buyer broker agreement to ensure you get paid from the buyer.
I have had a situation where the buyer paid a fee on top of the seller paid commission and it was negotiated up front and the buyer realized they were a handful.
Never ....I have been blessed to never have a problem with this.
I've only had it happen once, luckly I always get the buyers rep signed otherwise I would have been working for free.
The buyers rep contract spells it out. I have had buyers that bought a home knowing they would have to pay some of my commission
Val Evans My fee is always covered in the Buyer Broker Agreement. A recent commercial deal where the seller (U.S. Government) was not paying a fee to the buyer's agent.
my team members and I are listing agents....I think it's doing the seller a great disservice by NOT offering an equal split to the buyer's agent.... it's wrong on many levels....
One and there wasn't a buyer brokerage agreement in place at the time.
The Buyer Representation Agreement or Buyer Customer Service Agreement is like an "employment agreement". If you don't have an "employment agreement", then you accept whatever the buyer is obligated to pay, which could be zero, or whatever the listing in the MLS specified.
I tell them I will not be getting paid and would like buyer contribute a flat fee for my effort. Many business opportunities the listing agent claims the buyer agent is not a member of xx association and they will pay the other licensed raltor they have a ccim credential blah blah....
The commission is often low and the time it takes is a lot. That is one reason most agents are not interested in commercial or business opportunity.
As long as they know ahead of time and adjust the offer price accordingly or write it into the offer that the seller will pay this to their agent.
In almost 25 years, not a single one. And never needed to ask either. Always was paid through the listing firm that offered compensation for bringing them the buyer.
Not yet, although it is possible on a FSBO if the seller won't pay it.
Not happened to me. But close several times with commercial buyers.
I've never had it happen, Val. All my deal have had clear terms including commission split.
I have had the Buyer and the Seller split my commission twice in 17 years!
I haven't yet, but the time may come. If you have the agreement it will be put on the HUD and be paid at the closing table.
Have a flat fee company in town that offers just a flat fee, and with the buyer's agency agreement signed, buyers have to make up the difference.
As real estate becomes bifurcated more and more, buyers will be paying separately for these services on a regular basis. I hope the closing disclosure has some place other than "misc" for these fees!
It has not happened to me.
The buyer hands me a check made out to my broker and I say, "Thank you very much." Or, they may hand the check to the title agent. The Broker must be in the loop and get their cut.
Some buyers state they do not want to see ANY real estate that defers traditional seller cost onto the buyer. So, that makes it REAL easy.
Other buyers want 'off-market- real estate where no seller broker exists.
Buyer direct compensation transactions happen more often than you can imagine, you can't see/monitor them in the MLS but they are not invisible.
In 2015, some variation of this occurred 4 times.
Be aware, buyers in certain situations CAN NOT compensate their agent directly. If you get stuck, you will be working FREE.
I always get paid at closing table when working as a Buyer's agent for a FSBO.