117,135
Sales agents commissions are included in everyone from the new car you purchase, to the insurance you buy, to the stockbroker you use. WHen you purcahse presciption drugs, you are also paying for the sales commisions of the pharmaceuttical sales reps, etc.
Just like the checkers at Mcdonalds and Wal-mart are paid for due to you buying things at the stores, so I agree and say of course, any buyer is paying for all the thinks required to get that product to the marketplace and sold. The income that comes in pays for everything that company does.
Its just a different way of looking at it.
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Fred Griffin Florida R...
Tallahassee, FL
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Silvia Dukes PA, Broke...
Spring Hill, FL
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Kelly Turbeville
Lake Forest, CA
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Robert Newman
Buffalo, WY
-
Marco Giancola
Miami Beach, FL
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Debbie Gartner
White Plains, NY
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Mimi Foster
Colorado Springs, CO
-
Dorie Dillard Austin TX
Austin, TX
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Steve Higgins
Kelowna, BC
-
Jim Cheney
Santa Rosa, CA
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Christine Kankowski No...
Poway, CA
-
Nina Hollander, Broker
Charlotte, NC
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Barbara Todaro
Franklin, MA
-
Annie Adjchavanich
Los Angeles, CA
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Richie Alan Naggar
Riverside, CA
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Brenda Mayette
Glenville, NY
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Kathleen Daniels, Prob...
San Jose, CA
-
Eve Alexander
Tampa, FL
1,052,056
Dude, that presupposes that you would get a discount on the price if I was not involved. That's not likely to happen. Because like you, the seller wants to realize as much profit as possible. PS bite me.
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Richard Bazinet /MBA, ...
Scottsdale, AZ
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Fred Griffin Florida R...
Tallahassee, FL
-
Ari Taylor
Peabody, MA
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Tony and Suzanne Marri...
Scottsdale, AZ
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Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Althea Kippes, Esq.
San Francisco, CA
-
Mimi Foster
Colorado Springs, CO
-
Steve Higgins
Kelowna, BC
-
Jim Cheney
Santa Rosa, CA
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Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Brenda Mayette
Glenville, NY
-
Kathleen Daniels, Prob...
San Jose, CA
-
Jennifer Mackay
Panama City, FL
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Christine Kankowski No...
Poway, CA
-
Candice A. Donofrio
Fort Mohave, AZ
989,652
I'm with you - must have taken a seminar on how to buy houses and alienate real estate agents
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Fred Griffin Florida R...
Tallahassee, FL
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Melissa Jackson REALTOR
Azle, TX
-
Inna Ivchenko
Encino, CA
-
Candice A. Donofrio
Fort Mohave, AZ
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Lyn Sims
Schaumburg, IL
-
Kathleen Daniels, Prob...
San Jose, CA
4,571,881
I don't always read the answers before responding but this time I'm glad I did -- good question and the very thorough answer from Christine Kankowski Temecula & San Diego is an excellent one. Through reading the answers and your comments to the responses, I'm not surprised it came from a first time buyer as I have heard the question before.
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Kathleen Daniels, Prob...
San Jose, CA
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Steve Higgins
Kelowna, BC
-
Pete Xavier
Pacific Palisades, CA
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Bob "RealMan" Timm
Minot, ND
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Anthony Acosta - ALLAT...
Atlanta, GA
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Nina Hollander, Broker
Charlotte, NC
5,104,931
I've heard that many times and in a sense it's true.
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Bob "RealMan" Timm
Minot, ND
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Debbie Gartner
White Plains, NY
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Michael Jacobs
Pasadena, CA
-
Steve Higgins
Kelowna, BC
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Susan Emo
Kingston, ON
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Kathleen Daniels, Prob...
San Jose, CA
3,587,835
1st time buyer et? Knows more than you apparently cause he learned all thing re himself on the net.
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Michael Jacobs
Pasadena, CA
-
Mimi Foster
Colorado Springs, CO
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Melissa Jackson REALTOR
Azle, TX
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Candice A. Donofrio
Fort Mohave, AZ
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Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
5,583,278
I've always felt the buyer pays for the commission because it comes from the proceeds....the buyer is paying those proceeds....it is deducted from the amount of money received by the seller but it's from the buyer....
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Debbie Gartner
White Plains, NY
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Michael Jacobs
Pasadena, CA
-
Susan Emo
Kingston, ON
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Kathleen Daniels, Prob...
San Jose, CA
-
Pete Xavier
Pacific Palisades, CA
953,617
I would actually agree with him, but for him trying to use that "excuse" to receive a rebate of the commission...NO WAY!
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Debbie Gartner
White Plains, NY
-
Michael Jacobs
Pasadena, CA
-
Steve Higgins
Kelowna, BC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Barbara Todaro
Franklin, MA
1,543,235
I'd say "GREAT! I'll take mine now. Make the check out to Thomas J...."
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Thomas J. Nelson, REAL...
La Jolla, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
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Michael Jacobs
Pasadena, CA
921,504
The argument has always been 'The one bringing the money to the table is the one paying for everything.'
To the buyer asking this question I would ask, "Do you know how much you are paying your mortage comany and/or loan officer? How about your financial planner or who you are really paying when you get that cell phone bill?"
"Thank you for your significant contribution to the service based economy."
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Michael Jacobs
Pasadena, CA
-
Candice A. Donofrio
Fort Mohave, AZ
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Kathleen Daniels, Prob...
San Jose, CA
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Lyn Sims
Schaumburg, IL
613,494
The debate over who pays the commission has been going on for decades.
One side says it comes from the seller because they pay it and the other side says that without the buyers money, there is no money to pay any commission.
Commission is billed into the purchase price no different than tax on a loaf of bread...the rest is not important.
Eve
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Debbie Gartner
White Plains, NY
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Michael Jacobs
Pasadena, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
809,258
I actually had a buyer say that before but it was in my defense to a builder who was being a jerk to me and claimed I needed to do what he said because he was paying my commission. The buyer was ticked off and used that claim as a way to tell the builder to shut up. I don't usually need buyers to stick up for me, but it's nice when they are loyal and appreciate you. That was about 10 or so years ago. -Kasey
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Michael Jacobs
Pasadena, CA
-
Lyn Sims
Schaumburg, IL
-
Brenda Mayette
Glenville, NY
-
Kathleen Daniels, Prob...
San Jose, CA
3,071,489
Candice A. Donofrio nailed this one!
-
Fred Griffin Florida R...
Tallahassee, FL
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
5,229,328
Oh, I think Christine Kankowski Temecula & San Diego has a great response for you, Kathleen Daniels! I'm surprised this came from a first-time homebuyer too!
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Kathleen Daniels, Prob...
San Jose, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Michael Jacobs
Pasadena, CA
6,392,899
Different ways of looking at things...
I posted a Q here a few weeks ago regarding buyer gifts and several agents here implied that the buyer was indirectly paying for the commission and thus deserved a gift.
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Kathleen Daniels, Prob...
San Jose, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
-
Michael Jacobs
Pasadena, CA
4,272,548
I agree with Nina Hollander
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Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
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Michael Jacobs
Pasadena, CA
2,390,010
I've heard it more than once Kathleen Daniels and of course there is some truth to it. My response would be based on the persons demeaner. One thing I am sure of is that my part of the conversation would start with "Thank You".
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
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Michael Jacobs
Pasadena, CA
805,799
Technically yes, but for him to say that takes a lot of........
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Michael Jacobs
Pasadena, CA
-
Pete Xavier
Pacific Palisades, CA
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Kathleen Daniels, Prob...
San Jose, CA
1,452,669
I agree with your Buyer. Whoever brings the money has the commission built in. As for your appraisal question, we don't have appraisals in Canada
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Kathleen Daniels, Prob...
San Jose, CA
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Michael Jacobs
Pasadena, CA
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Susan Emo
Kingston, ON
911,228
And when he buys a new car, he is paying the salespersons commission. I would have said "so what". Followed by " And you will be paying my commission directly to my broker if the the seller of the house you buy isn't paying it."
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Michael Jacobs
Pasadena, CA
-
Pete Xavier
Pacific Palisades, CA
-
Kathleen Daniels, Prob...
San Jose, CA
1,466,207
Kathleen Daniels Per the listing agreement the seller negotiates and pays the fee. The buyer can negotiate their fee in the BBA.
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Pete Xavier
Pacific Palisades, CA
1,844,171
'embedded' interesting phrase. There are 2 schools of thought here. I say the seller is paying for it because he nets less. Others say that the commission is mortgaged by the buyer. I'm sure he picked that up on Z.
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Michael Jacobs
Pasadena, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Kathleen Daniels, Prob...
San Jose, CA
711,752
I have never heard this from a buyer before, but the cost of anything you buy is figured into the price. Most of the agents who have already responded have said this far better than me.
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
846,475
"And your point is?"
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Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
2,817,671
Yes, I completely agree with this statement from your buyer! That's how it works from an economics standpoint. Most buyers don't realize this, but yes, this is completely correct.
That aside, the fallacy is that if they don't use an agent, that is a lost opportunity/opportunity cost and they are (as a general rule), not going to get a lower price.
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Pete Xavier
Pacific Palisades, CA
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Kathleen Daniels, Prob...
San Jose, CA
2,220,323
I have never had a buyer say that to me.
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Kathleen Daniels, Prob...
San Jose, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
4,434,127
I have heard it before.
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Kathleen Daniels, Prob...
San Jose, CA
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Michael Jacobs
Pasadena, CA
4,319,419
Kathleen Daniels - technically, the only person who brings in money at the table is the buyer - so it is okay for the first time home buyer to think that way.
However, at the time of disbursement of the money, the buyer has NO right on how that works.
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Kathleen Daniels, Prob...
San Jose, CA
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Michael Jacobs
Pasadena, CA
151,633
I can understand your buyer's logic. We say that the seller pays the commissions, but the buyer is the one who ultimately paying the purchase price which includes the marketing fees.
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Kathleen Daniels, Prob...
San Jose, CA
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Michael Jacobs
Pasadena, CA
321,564
I understand both parties point of view. On a blog I once posted, a visitor voiced their opinion as the buyer pays.
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Kathleen Daniels, Prob...
San Jose, CA
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Michael Jacobs
Pasadena, CA
3,986,258
Yes I have and I go into great detail in how commissions and other fees are paid and by who
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Kathleen Daniels, Prob...
San Jose, CA
-
Michael Jacobs
Pasadena, CA
3,988,007
I have had a buyer say that and all I said was Thank You. When I owned my own company I had one of my agents tell me she paid for my new car with all the money she made me. It takes all kinds.
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Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
5,005,333
Christine Kankowski Temecula & San Diego came up with an awesome answer.
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Michael Jacobs
Pasadena, CA
-
Kathleen Daniels, Prob...
San Jose, CA
353,865
I've heard that once before. It took awhile to wrap my head around their persepective. I don't necessarily agree with it, but I understand why some people might think it...
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Kathleen Daniels, Prob...
San Jose, CA
-
Michael Jacobs
Pasadena, CA
1,622,432
I heard such things too, even they do not pay your commission, they still try to get some kind of rebate. Thanks to Redfin or similar services education on such .
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
1,712,676
They are correct but put into context, without professional representation they might pay no commmssion but either buy the wrong house or pay too much.
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
5,048,728
I have not been told that by a buyer but have had a couple ask how the commission is paid and if they were responsible
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
2,781,013
I respect points of view as a rule. When in an impasse, you believe you and I believe me takes place....each one going their own merry way
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
5,216,284
Never ends, but since the buyer only pays what the market will bear, the seller takes the hit on profit, And, if a FSBO seller keeps the money. So take it however you want, if will be paid!
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
716,049
I say... YEP!
I heard that before, and I say, "ya... so? Would you prefer to pay now for it separately, and save the seller grief?" "...See, you can pay me cash directly now and save the money on the seller's price that would otherwise be on your loan in the purchase price over the life of the mortgage".
In our AZ buyer broker agreement - which I get every single client to sign, it clearly says that the buyer is responsible to pay the buyer-broker commission. But for practical reasons, it's paid at close of escrow from the seller's proceeds to the listing broker who in turn agrees to pay the buyer broker - all in one accounting swoop.
But on the other side of the coin is to explain that it is the listing broker that pays the buyer broker and not the seller - in AZ that's the correct technical answer. The money comes from the seller BUT as a result of an agreement between the seller and the listing broker.
SO... the seller is under no obligation to pay a buyer-broker commission, they could opt to not offer any buyer-broker commission if they want to (read: not sell their house).
SO in the end, does the money comes from the seller? Sure. But it's voluntary.
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Kathleen Daniels, Prob...
San Jose, CA
2,684,009
Christine Kankowski Temecula & San Diego provided an outstanding answer. I also like the last two words of Candice A. Donofrio's answer!
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Kathleen Daniels, Prob...
San Jose, CA
4,935,556
wonder who they are learning their lesson from
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Kathleen Daniels, Prob...
San Jose, CA
1,502,868
You can't fix stupid, not even with duct tape. Probably tells cops "My taxes pay your salary" too.
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Kathleen Daniels, Prob...
San Jose, CA
259,005
The cost of selling the house is in the price. So yes, the buyer is paying the commission.
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Kathleen Daniels, Prob...
San Jose, CA
1,725,996
So what was the buyer saying, You aren't worthy of being paid for your professional service? What an insult!
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Kathleen Daniels, Prob...
San Jose, CA
138,826
UGH! Agree with what Christine Kankowski Temecula & San Diego as someone who use do Product Development, trust me all expenses are built into a product as well as anticipated discounts. But that should not take away from our value as an Agent.
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Kathleen Daniels, Prob...
San Jose, CA
4,882,355
I would say "yes and what is your point"?
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Kathleen Daniels, Prob...
San Jose, CA
3,416,038
Technically the buyer does pay it in the sense that it is built in the price. However, the seller is the one with a contract and who actually pays the commission from their proceeds.
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Kathleen Daniels, Prob...
San Jose, CA
7,835,293
Just say that the commission is a reduction from the proceeds to the seller.
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Kathleen Daniels, Prob...
San Jose, CA
4,800,082
In a way, he's right. So, what difference does it make?
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Kathleen Daniels, Prob...
San Jose, CA
1,617,916
we need to educate the buyer more
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Kathleen Daniels, Prob...
San Jose, CA
1,390,113
Indirectly, sure. And I work very hard in my client's best interests to earn that money.
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Kathleen Daniels, Prob...
San Jose, CA