Question


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House sale: Real Estate Buyer Agent and Realtor Brokers. Is this correct?

MY QUESTION: I am making sure I understand this procedure: Is the following correct? I am the buyer. I use a "buyers agent", then the "buyers agent" has to use a Broker to put through the sale professionally. The "buyers agent" cannot do this himself. He must use/be affiliated with a Broker. The Broker is necessary, and no sales can happen without the Broker, (unless you are buying straight from the owner, which I wouldn't be) The Broker charges a set? commission. He either gets all of it or if the "buyers agent" brings him the sale, they split it? (added question:-- The buyers agent can help you negotiate this commission?) Thank you!! (California) thank you for the 1st answer. That was helpful. But no, I will only hire a buyers agent, and have not done that yet. But I heard that I won't have to pay any commissions either way, that the seller pays those comissions. But by using a buyers agent, I will have someone who is looking out for my interests.

2 months ago - 3 answers

Best Answer

Chosen by Asker

In order to assist someone in a real estate transaction -- and get paid for doing it -- you have to be a broker. The agent doesn't work for the broker, but is a subcontractor to him. You can get a buyer's agent if you like. You would have a contract with him and if he helps you to purchase a home within the time frame of the contract, you pay him what's called a "brokerage" which is a fancy term for commission. Although it appears you've hired an agent, you've actually hired the broker. Brokers set their commissions based on what's customary in that area. They split it with the agent. You can always try to negotiate commission, but the market really sets that rate so don't expect much. You can also use any real estate agent and not have to pay commission. If you do this, the broker(s) and agent(s) involved actually work for the seller, and owe him a fiduciary duty, but must treat you in an honest and fair manner. What this basically means to you is that if the seller says, "I'd like $150k for this house, but I'll take $130k," the agents CANNOT tell you. But if you say, "I want to offer $130k for the house, but if I have to I can go to $150k," they MUST tell the seller. On the other hand, if they know there are termites or a leaky roof, they have to tell you that. They have to tell you anything that might be detrimental to the property or you have grounds for a suit against them. Same with the sellers...they have to disclose what they know is wrong with the house in writing. Until about 15 or so years ago, all real estate transactions were done this way. I'm not planning to buy any property, but if I was, I'd probably do it this way. PS. Get a pre-approval for your mortgage before you start shopping.

by daeve930

2 months ago

Asker's Rating: 

Other Answers

The commission is actually negotiated by the selling agent. The exact commission is posted in the MLS and they buyers agent can not negotiate it either way. In CA the standard will be for them to receive 3%, but 2.5 is common as well.

by Landlord- 2 months ago

In a real estate transaction using realtors the seller hires a listing agent who charges say 5% to sell his home. The listing agent offers say 2.5% (which is half of the total commission charged) to a buyers agent who brings in a buyer. The buyer's agent who is hired by the buyer only makes money from the seller's agent who offers part of his commission to close the deal. The buyer nevers has to pay a commission, that is taken care of from the seller. In Illinois each real estate office must have a managing real estate broker that agent's work for. The broker can also represent a buyer or seller in a transaction.

by Deb- 2 months ago