Who pay the commission to the agent

Question

Who generally pay for commission to the agent. Does it get split between buyer and seller or seller pay for it.

Bill Gulley · Answer

The closing agent pays it, LOL....no, really as mentioned, it's customary for the seller to pay, but as Tom mentioned it's somewhat negotiable but it does get debited from the seller's side. Since it's in the sale price, many will say the buyer really pays it and they do in most cases. You'll find more splits in commercial transactions and much lower % as prices go up. And the one who contracts with an agent will be responsible under that contract, you can have a higher commission on a buyer's agreement where the buyer's agent takes the co-broke fee plus a bonus from a buyer, same could happen with a selling agent/broker as well. But most deals, the seller is responsible to pay the fee when it is earned, which can be by bringing a willing and able buyer to the table. :)

Tom Goans · Answer

By the way Pete Tam,

Who pays the real estate commission is negotiable and can be part of the offer. Real estate agents and companies do not care who pays as long as they get paid. The terms of the purchase agreement and the closing instructions announce who pays what and how much. The settlement sheet is the road map.

Pete Tam · Answer

Thanks Wayne BrooksTom Goans for your suggestion.

Tom Goans · Answer

It is stated on the Listing Agreement for the property.

A rule of thumb, whomever hires the real estate agent.

Wayne Brooks · Answer

Clarify it with your agent, but unless you signed an agreement to pay it, the seller should be paying it.

Pete Tam · Answer

My agent wrote this in the contract letter: "Both buyer and sellers acknowledge this is a cooperative sale with a commission of %"

And yeah I forgot to mentioned that he is buyer's agent (I'm planning to invest in this property)

Beth D. · Answer

Sellers