Hello- My wife and I are new to real estate investing and are looking to purchase our first rental property, ideally a property that has been foreclosed on. Is it common for the buyers agent to charge a fee to the buyers? in this case 2.5% Many of the properties are possible short sales, but I was under the impression that the sellers pay the realtor commissions.
When you hire a buyers agent typically you will technically agree to paying them. However the buyer broker form will usually have language that says something to the effect that the fee can be offset from a cooperation fee offered by the seller. So in reality, the fee will come from the seller.
What Russell said! In addition to the commission that is technically owed by you, but in practice is almost always offset by the listing agent cooperation fee (usually 2.5-3.0%, at least in my area), there is sometimes a flat fee or admin fee changed by the buyer broker. This is almost always paid by the Buyer himself, and is usually the only compensation you as buyer owe the Buyer Agent for their services.
Before writing any offers just ask your agent to confirm that the Buyers Agent Cooperation Commission on the listing is at least 2.5%. If its less then adjust your offer accordingly, and make sure your agent tells the listing agent that the offer price was adjusted on account of the low Buyers Agent Cooperation Commission split.
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