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Tony and Suzanne Marriott, Associate Brokers, Haven Express @ Keller Williams Arizona Realty (Serving the Greater Phoenix and Scottsdale Metropolitan Area)

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Ambassador
1,452,819
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

Chicken!  No, Egg!!  No, Chicken . . .  who knows!  To me it is semantics and as long as SOMEONE pays, I don't get bogged down in the details

Nov 15, 2015 11:15 PM
Rainmaker
2,362,948
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Some days I think it is us. No wait that is our blood sweat and tears that are shed

Nov 15, 2015 10:07 PM
Rainmaker
1,770,282
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

One of my first brokers would ask "What does the contract say?" Right on page one of the Listing Agreement it says "Seller agrees to pay Broker ..." as well as "Seller acknowledges that Broker will offer x.xx% to the cooperating broker who is the procuring cause of the sale."

Nov 16, 2015 12:47 AM
Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Told ya. Existential question. ;)

Nov 16, 2015 12:05 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty
Nov 15, 2015 10:50 PM
Rainmaker
1,543,662
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

The seller. Great question by the way:

Commission is not paid until money changes hands and escrow closes. At close of escrow, it's from the seller's proceeds we get paid. The market dictates the price. I've never said " your home is worth $600,00 so let's price it at $636,000 to cover the commissions". That wouldn't work and it's a bad analogy. Because now you have a seller focused on the cost of 6% vs. the gain of 94%. Seller's money=seller's expense.

My buyers only pay portions of commission when it's a "below my minimum commission. FSBO or just a below 2.5% or 3% pending time frame of service."

Nov 15, 2015 10:46 PM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

Buyers - buyer is paying for everything. It may or may not be built in the price but without the buyer pulling the trigger, no body gets paid anything.

Nov 15, 2015 10:27 PM
Rainmaker
1,731,203
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

They both do in my opinion .....it's which came first ....the chicken or the egg!

Nov 20, 2015 09:24 AM
Rainmaker
699,277
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

It's always the seller.

Nov 16, 2015 11:53 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

The market price generally has the commission rolled into the values so the seller pays the commission. 

Nov 16, 2015 09:02 AM
Rainmaker
1,683,912
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Iin Indiana, the Seller pays the commission, as it is written into the contract. If it is a FSBO and the Seller doesn't want to pay the commission, the Buyer may pay it, if they REALLY want the home.

Nov 16, 2015 07:17 AM
Rainmaker
1,577,943
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

it's all part of the transaction and I think each party needs to understand that. 

Nov 16, 2015 06:39 AM
Rainmaker
516,437
Brenda J. Andrew
ULTIMA REAL ESTATE - Willis, TX
Professional Realtor in Conroe/Willis, TX

I usually say the seller, but they get the money from the buyer, unless they have to bring money to the table, and so on and so on and so on.....

Nov 16, 2015 04:56 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The closing agent writes the check.  They are the ones paying the commission.

Nov 16, 2015 04:21 AM
Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Contracts can specify who pays. Usually the seller.

Nov 16, 2015 01:56 AM
Rainer
42,670
Fred Hafdelin
Weichert Realtors - Mountain Lakes, NJ

Our commission is taken out of the Sellers proceeds no matter who the seller is. (Bank, Estate, short sale).

Nov 16, 2015 01:07 AM
Rainmaker
4,572,173
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Really?  Or Should I ask REALLY?

Nov 16, 2015 12:55 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

The buyer indirectly through the seller, but the seller dictates the rate.

Nov 16, 2015 12:33 AM
Rainmaker
617,935
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Tony and Suzanne,
This is a bit of a theoretical question this early on a Monday morning. There can be a difference in who “pays” the commission vs. who “funds” the commission. In “theory” both seller and buyer split the cost because both “could” benefit if it weren’t charged. I’m off to find an easier question.

Nov 16, 2015 12:14 AM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In the US it is often the seller foot the bill. See the listing agreement.

Nov 15, 2015 11:16 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

the buyer....it comes from the proceeds....

Nov 15, 2015 11:12 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

In the transfer of residential real estate ownership the official documents say, and is itemized on the listing agreement, exactly who pays the professional compensation.

Do you have ANY DOCUMENTS stating something different?

We all recognize one of the joy's of real estate is there are exceptions to nearly all the rules. 

And for your follow up question, I vote for the chicken.

Nov 15, 2015 10:58 PM
Rainmaker
4,333,761
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Well, when we first started we were told the ones that bring the checks to the closing!

Nov 15, 2015 10:58 PM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

I think it is the seller.  I know the buyer brings the money; but they get the house.  The seller gets they money; but they pay the commission.

Nov 15, 2015 10:57 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

Reference needs to be made to the relevant agreements signed between the various parties involved in the transaction to see who pays the commission.

Nov 15, 2015 10:46 PM
Rainmaker
7,836,134
Roy Kelley
Retired - Gaithersburg, MD

The perception is that the seller is paying the commission but the buyer is funding the transaction.

Nov 15, 2015 10:27 PM
Ambassador
6,393,179
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Everything is negotiable.

Feb 08, 2019 10:55 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Whichever we put it, Tony and Suzanne Marriott, Associate Brokers - it is still buyers who has all the money!

Nov 17, 2015 06:10 AM