Buyer's Agent Commission in NY - Posted by Paul

Real Estate Investing Real Estate Law
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Posted by Dave on July 01, 2006 at 16:24:44:

I’m a real estate agent in TN. I agree with the post by BTI. It is a very common practice for for a real estate agent with a buyer to ask for a commission on the sale. Even with a contract between buyer and agent, money for the agent usually only comes from the commission not the buyer. In my area a 3% commission is common for this type of transaction. By the way the amount of the commission is completely negotiable. Find out what the offer is and see how much you will net.

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Buyer’s Agent Commission in NY - Posted by Paul

Posted by Paul on June 29, 2006 at 07:41:23:

I currently am not under contract with any realtor to help sell my condo - but yesterday a realtor called me because she wanted to show my condo to one of her clients and she said she wanted a 4% commission. My question: Is she entitled to a commission at all? I thought she only gets a commission if I had a realtor. I would greatly appreciate the advice from anyone

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Re: Buyer’s Agent Commission in NY - Posted by BTI

Posted by BTI on June 29, 2006 at 12:27:33:

Paul

Here is how it generally works, first if the agent has any brains they won’t ask you for a listing because that would create a legal relationship and if they are smart they already have one with the buyer.

So they would present an offer to purchase which includes a clause that you as seller are to fund the commission to the buyers agent. The buyer and agent already have a buyer listing contract.

Now you may ask why can’t the buyer just pay the agent what is due him? Well, they could but they would also just lower the price accordingly. And that creates a problem also because of lenders policies in this country, in general when you lower the sales price by the amount of a commission your also lowering the amount of the loan the buyer can get by the same percentage as the commission.

They way I look at it is your getting an agent to handle the deal for 4% and he alread has the buyer, and if the price is acceptable take it, if not then don’t. It sounds like you are a fsbo, what is it going to cost you to look at the offer, save your objections for when you know what it is you want to object to, after all your concern should be what are you going to net and can you reasonably expect to do better.

BTI