Agent Fees in Denver - Split 50/50 seller/buyer?

5 Replies | Denver, Colorado

Two questions: 

The first is that I've heard that buyers will pay the agent closing fee? Is this common, a result of a competitive market, or a rumor? 

The second is, when you submit an offer, where would you find the % paid out to agents upon closing & who is responsible for it? 

Very seldom would you see a Buyer paying the Realtor fees directly at closing - I would say rumor.

Most often, the commission is a listing fee that the listing brokerage is splitting with the brokerage of the Buyer's agent. In other words most sellers in Denver are still paying for both sides.

If the property is listed on the MLS, you can ask the Broker that is representing you to show you the fee offered by the listing agent on the MLS. It will not be listed on the contract if the Buyer's agent is accepting the amount on the MLS. However, the commission can also be negotiated with the offer assuming that you allowed them to do so with your Buyer's agreement you initially signed - if negotiated to be different from what is stated in the MLS listing it should be in paragraph 30 of the contract to buy and sell (the offer). If you need/want more info on this feel free to PM me.

@Lauren Hogan generally speaking, buyers have no extra cash and so getting them to pay the buyer's fee is not likely (I don't think most lenders would fund those sorts of costs). The technical process is that the seller pays the brokerage of the agent listing the property a commission. That brokerage for the agent working with the seller then "shares" the commission with the buyer's agent's brokerage who then pays the buyer's agent. It's real estate so you can negotiate anything but it's not customary and things out of the ordinary mean that fewer people are interested in going along with it. The market has changed a bit so I think this approach would receive a cool reception (meaning your property wouldn't sell). 2-3 years ago it might have worked on an occasion. More customary to negotiate a better listing fee with the seller's agent if money is your driving force. You can easily get lower listing fees if you don't care about service or if you don't care if your sale price reflects value in the market place. Sometimes a discount brings value and sometimes it does not. 

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@Lauren Hogan

Sellers usually pay both buyer and agent commission. Sometimes investors will ph agent on the buy side if they found a deal for them, or they get the listing on the back end. All negotiable of course.

Also, settlement statement towards closing time is sent out, that’s where you see who pays and how much fees are.

It is normal for the sellers to pay for the commission. How it is split between the buyer and seller's agents depends.  I've seen cases where the selling agent gets a larger percentage which makes sense as they have extra costs associated with advertizing it.

A buyer can pay for the commission, and it will be put on the closing docs. There was a company that was trying to pay a flat fee to buyer's agents, but they quickly changed tune when their homes didn't get shown. 

What your agent gets paid is put on the seller's closing statement, and I doubt you'll see that as a buyer.