Question on agent commission for buyers side

[Andy Sabisch]

Quick question . . . . looked at a property listed around $75,000.  The agent we contacted that we have used on other properties (which were over $100,000) is saying that we as buyers would need to pay the difference between 3% of the purchase price and $3,000 which is about $800.  The agent works for EXP and says this is normal.  We have an exclusive with her for any property.

Is this normal?  Would you simply contact the listing agent and submit the purchase offer that way?

Thanks

[Dustin Allen]

@Andy Sabisch

Refer to your exclusive buyers representation agreement that you signed.  You likely signed something saying you would pay 3% on any property purchased and if the listing agent offered a share then that would be deducted from what you have to pay your agent.  This is very common and understandable that the agent enforces the difference on such a low priced property. $3k is nothing after splits, taxes and expenses. I will generally waive the difference on larger deals if the other agent offers a decent commission share but I’m not required to if I have that signed agreement with the buyer.

If you go directly to the listing agent and have an exclusive agreement with another agent, you will owe the buyers agent fee anyways. Don’t do that if you’ve signed an exclusive agreement.