Real Estate Agent · Ashburn, VA · Member since 2016 · 107 posts · 31 votes
3y
@Aditya Bhate Great question! The seller agreed upon a commission amount with the listing agent. They also agree how much of that total commission will be offered to the buyer’s agent.
The buyers have a separate agreement with their agent saying how much commission they are obligated to pay. The buyers would only owe money if the property they purchase is offering the buyer’s agent less than the agreed upon amount.
For example-
A buyer has an agreement with an agent to pay 2.5% commission, but the property they ratify on is only offering 2% commission. The buyer’s agent could require the buyer pays them the .5% out of pocket. When I’m working with clients I make them aware of this before offering and I’m also willing to work with my buyer to make sure it’s a win-win.
Real Estate Agent · Ashburn, VA · Member since 2016 · 107 posts · 31 votes
3y
@Aditya Bhate Great question! The seller agreed upon a commission amount with the listing agent. They also agree how much of that total commission will be offered to the buyer’s agent.
The buyers have a separate agreement with their agent saying how much commission they are obligated to pay. The buyers would only owe money if the property they purchase is offering the buyer’s agent less than the agreed upon amount.
For example-
A buyer has an agreement with an agent to pay 2.5% commission, but the property they ratify on is only offering 2% commission. The buyer’s agent could require the buyer pays them the .5% out of pocket. When I’m working with clients I make them aware of this before offering and I’m also willing to work with my buyer to make sure it’s a win-win.
Had this question in mind and kinda cliché but still wanted to get a clear idea.
Consider someone is looking to buy a house in Ontario, Canada. Lets say that person finds a deal.
Now, the question is who pays for the seller's realtor and the buyer's realtor:
1) Is it that the seller pays whatever commission to the seller realtor which is then split b/w the buyer's and the seller's realtor.
OR
2) Seller pays the seller's realtor and buyer pays the buyer's realtor.
**** From what info is out there on the internet, it says the buyer is not supposed to pay any realtor commission. Is this true?
Or Is there any specific law regarding this from the provincial/federal govt.?
#Realtor #Ontario #RealEstate #Canada
Typically the seller will pay a commission to the sellers agent (usually 5-6%) then that sellers agent will split it with a buyers agent who brings in the buyer for the deal therefore the seller technically pays the buyer agents commission as well as the sellers agents. The vast majority of homes listed on the market by a realtor this is the case. Very rarely will the buyer pay a realtors commission, the only times I’ve seen it is when there is a huge bidding war on a house and the buyers agreed to pay the commission of their agent to be more competitive, but that usually never happens atleast in my market
In both BC and AB and guessing other provinces in Canada, the seller has a contract with their agent that states the total amount of commission to be paid upon the sale of the home. It is paid by the seller. It also outlines how much of the commission goes to the listing agent and the buyer's agent. The ones I've seen have a slightly higher amount going to the listing agent as there are extra costs for that person associated with the sale of the home.
I've never seen a case where a buyer has a contact with their agent that requires them to pay any extra fees.
In both BC and AB and guessing other provinces in Canada, the seller has a contract with their agent that states the total amount of commission to be paid upon the sale of the home. It is paid by the seller. It also outlines how much of the commission goes to the listing agent and the buyer's agent. The ones I've seen have a slightly higher amount going to the listing agent as there are extra costs for that person associated with the sale of the home.
I've never seen a case where a buyer has a contact with their agent that requires them to pay any extra fees.
In Canada, its typical seller pays realtor commissions.