Thread: Buyer Agent Fee?

It really varies from agent to agent. Moreover, this is like an urban legend. For example, if house is for sale with listing price $200k , 2.5% still 5K minus broker's office share. However, if house is 1000000 -- 2.5% is 25K. I would go for it in any case.

Originally Posted by M4rk

Do agents actively avoid showing homes that offer less than 3% to buyer agents?
If a home is in great condition thus reducing the number of potential objections by a buyer then why should a home owner pay 3% or more to an agent? Just as a selling fee is negotiable why not with the buying fee?

In Europe a full service agent can charge as little as 1-2% for both buyer and seller service. So why is it so much more expensive here?

I have no axe to grind, just a simple observation?

Thanks

Considering the fact that leaving out potential homes for a buyer is unethical, agents shouldn't be avoiding them. My responsibility is to my client whether the home pays 1%, 2%, or 6%, and I'll show them whatever homes match what they are looking for.

Originally Posted by michael krotchie

Considering the fact that leaving out potential homes for a buyer is unethical, agents shouldn't be avoiding them. My responsibility is to my client whether the home pays 1%, 2%, or 6%, and I'll show them whatever homes match what they are looking for.

I am 100% with you, but I know it happens. It shouldn't but it does. Unfortunately, some real estate agents put their own interests ahead of their clients.

I've seen a few of those. But most of my dealings have been good.

I work hard for my clients and I cannot stand showing properties that offer less than 3%. But I will show them because I don't want my client missing out.

As a listing agent I would never take a property at less than 6% (offering 3% to buyers agent). If you do your job as a listing agent you will have advertising expenses and not just stick it in the MLS. Those costs add up.

I have to agree - unfortunately the amount that you offer out to buyers agents can make a difference. With the vast inventory of homes available in todays market, realtors need that little bit of an incentive to show a home. It stinks but so many realtors think that way. plus it is a lot of liability for a brokerage to accept for less than 3% in (on your average $150k home)

also depend on he value of the home! if you have a $1 - $1.5m listing realtors won't always expect that 3%. Main competition for home sellers today is the builders, if we are talking in terms of commission. There is a sub development near me, in central fl, that is offering 10% plus $20,000 cash bonus on inventory homes!! Plus i don't have to split that bonus with a broker (some brokerages differ with that policy). And these are nice good value homes!

the more commission you pay can ultimately reap you a higher net for your pocket if you get more qualified buyers to your home.

I have to disagree about the price of the listing changing commission. I have a 1.5M listing that pays 4% to the buyers agent and a 1.1M listing that pays 5% to the buyers agent. I am not going to cut my commission for anyone. If we all cut our commissions then we will be working for free in the near future.

I do like selling those new homes right now though. They are offering awesome incentives for agents and buyers.