Who Pays Realtor Fees?

Question

I was signing some paper work and I noticed a clause that basically stated that if the broker does not collect a 3% fee from the "seller" then the buyer is responsible for paying the difference up to 3%....

I've just never seen this before...i've only worked with a hand full of realtors though.

1) I thought that seller pays realtor fees normally...is this not the case for REOs/Foreclosures?

2) Is this a typical clause in most broker/buyer agreements?

Jordan Schneider · Answer

If you want to know what the listing agent is offering, you can just ask.  Your agent should be honest and tell you because you shouldn't be responsible for the entire 3%.  For example, if the listing agent is offering 2% than you would be responsible for only 1% to bring the commission to 3% although when you put an offer on a house that extra percentage she be part of the terms of the offer so it doesn't come out of your pocket at closing.  The only way I can imaging you being on the hook for the entire 3% is if your agent finds you a FSBO where the homeowner is not offering any commission to agents.

Tiffany S. · Answer

@Jordan S. I'm the buyer so my agent.   How do I know what the listing agent is offering?

Sounds fair...I had just never heard of it before. Didn't know if this was a common practice.

Jordan Schneider · Answer

Whose paper work were you signing, the listing agents or the buyers agent?  Generally the commission that the realtor owns comes out of the proceeds of the house.  If you are working with a buyers agent, they may not be happy with the standard 2% that the listing agent is offering and will want an additional 1%.  They may deserve it if they are working for you by running comps working up CMA's and figuring out ARV's and things like that.