Selling and buying homes who pays for Real Estate Fees

Selling Real Estate
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When it comes to Selling and Buying homes who pays for Real Estate Fees? Many of times I am asked if a broker can give a broker credit on a real estate transaction. Absolutely yes! In fact I encourage real estate brokers to do that to build good will. The question is who pays for what… when it comes to commission. Here is the short answer. They both do! Both the buying agent and the selling agent are paid their commission out of the seller. Depending which agent you are representing usually the finger points the other direction that pays the commission. This is a fallacy or another word incorrect thinking on the agents involved in real estate. In my personal opinion real estate agents and realtors play a game and whom pays for the commission. Let’s be honest let’s be ethical. I am a firm believer that we should always choose the right which is the reason why I am disclosing to you how commission is earned and paid to the real estate agents or realtors. Now for those who are buying a home or would like to buy a home all real estate commission is negotiable. After all you are the client to the real estate agent or realtor. Most agents and realtor will lead you to believe that you do not have a choice whether to accept or not accept the commission that the agent is claiming to charge. Just remember that you have the right to say yay or nay. For example let’s say you want to sell your home for $100,000 at 6% commission. The commission fee would equal $6000. $100,000 minus $6000 equals $94,000. In my books the home-sold for $94,000. if you do not have an agent involved. Now when it comes to the buying agent the new homeowner is paying $6,000 more for the home. If there was no agentthe new buyer would be paying $94,000 instead of $100,000. Bottom line we now have a $6,000 commission going to real estate agents or realtors. Remember both seller and buyer are paying the commission toward the selling agent and buying agent. Sometimes the selling agent can double and on the commission. Meaning that the selling agent is representing the buying agent at the same time. Beware this is not a very good situation for the new buyer or the seller because in my humble opinion I believe that the selling agent will lean toward more the seller than the buyer. The agents have a fiduciary relationship with buyer and seller. Again in my humble opinion how on the world can an agent be both? it’s rather difficult and in my opinion unethical to be both selling agent and buying agent.

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