Why does the seller of a home have to pay a commission to the buyer's agent?
I was just wondering why, if I am selling my house, I have to pay someone to buy it especially if I am selling my home without a real estate agent.6 years ago - 11 answers
You are paying for their expertise in the field. A buyer's representative looks out for the best interest of the buyer.
The seller pays in order to avoid a conflict of interest on the buyer's agent. The more money the clients spend, the more the agent makes.
As a seller, you don't HAVE to offer a cooperating broker a commission. You will drastically reduce the pool of agents who are willing to work with you if you do though.
Plus, if you are selling yourself there are myriad pitfalls that can tangle a transaction that you will likely fall into if you aren't savvy in real estate transactions.
Source(s):6 years ago
If you are selling your house on your own without a real estate agent then you do not have to pay the buyers agent any commision unless you accepted a an offer that states you do. It is the buyer who pays the agent based on the contract fees they have come to.by Gus Buckingham - 6 years ago
Most likely because if it weren't for the buyer's agent, your buyer would've never seen your home. Plus you're paying for the agent's time. Nothing's free.by ronidl76 - 6 years ago
all up for negotiation and you can decline the offer if you do not wish to offer it.
in today's real estate market i would pay it and give them a kiss on the cheek for finding you a realistic buyer.
Real Estate commissions are not set in stone. You can negotiate with brokers to adjust their commissions. You can stipulate that the buyer is responsible for the buyers broker commission or if you are selling the house yourself you can state that no buyers brokers commissions will be paid. Of course that means very few buyers using a broker will come to view your home.
It's up to you to decide if you want to pay a buyers broker in order to sell the home, or if you want to wait for a buyer who isn't using a broker.
like I say before agents are like use cars salesman the are just there for the commission after you sign the papers they don't care if the house falls on youby Martha Y - 6 years ago
Where did you get the idea you had to pay a buyers agent? You dond't.by PIE R SQUARED - 6 years ago
That would be your choice. I would recommend that if you are trying to sell your home that you allow real estate professional to show it and help you....but that is up to you. If they are representing the Buyer it can be negotiated as to who is paying them. The main thing is finding a Buyer. Good Luck!by Tres7 - 6 years ago
First off, NEVER sell your home without a real estate agent. You could be overpricing/underpricing it and really hurt yourself. Example: You sell your home "for sale by owner" and get $250,000 for it. Congratulations, you just saved $15,000 by avoiding the real estate agent's commission. However, a real estate agent has better marketing resources and knows values better than you do. They could have sold it for $300,000. Oops, you could have gotten $50,000 more for your house.
Another reason to use an agent is legality - there are so many little tricks that sneaky people can employ to sue you after you sell your house. Real estate agents have safeguards and checks in place to prevent this and are constantly updating their paperwork/forms.
But to answer your question: it takes a lot of time and effort on the part of *both* the buying agent and the selling agent to complete the transaction of a home-purchase. It's not something that just anyone can do. In the case of an agent-assisted buyer in the purchase of a "by-owner" seller, an agent basically has to do the work of BOTH the buyer's agent AND the seller's agent, with a questionable amount of commission. This is why "by-owner" sales usually short-change the seller - no real estate agent is going to show/recommend the house to their client... so as a seller, you are missing out on a huge portion of your target market and will have to settle.
You don't have to cooperate with a buyer's broker, but don't expect any broker to show your house if you aren't willing to pay the commission.
Before I show any FSBO, I call to see if the seller is willing to pay my commission for bringing my client to the house. If they hedge or the answer is no, I don't show it.
Realtors are paid by commission only, and if you aren't willing to pay me, I'm not willing to sell your house.
Source(s)by godged - 6 years ago
If you wouldn't have had that buyer without that Agent, why would you object? Especially in this market where there is tons of inventory available.
Source(s)by Emcee H - 6 years ago