How Is A Buyer Agent Commission Amount Determined

Category: Finance, Real Estate.

With the Internet becoming accepted as buyers landing- place in real estate, the discount Realtor is move forward in the front line.

How Is a Buyer Agent Commission Amount Determined? The question is, is this really of importance for consumers? To begin with, who determines on the buyer s agent compensation? Absolutely not. Is the MLS listing a yardstick with regards to the pay of the buyer s agent? Neither is it determined by how much the seller is adding for the agent s fee contrary to people s opinion.

Practically saying that the buyer gives his agent his fee. According to the Buyer s Representation Agreement, in Texas that is, it is a decision decided on by the buyer and the hired agent. It is the Buyer Rep Agreement that instructs the buyer agent s compensation amount, not the MLS Listing. We get the 3% without regardless the MLS listing as explained to the buyer. In our Buyer Rep Agreement, a buyer accedes to pay us 3% for our job done as buyer agent. We will endeavor to get payment of the pay first from the seller, and have always accomplished in doing so, but if the seller is offering less than 3% to buyer agents via the MLS listing, our buyer will be obligated to pay the difference or decide to pursue a different home.

Presently, out of almost 30 closed deals, we ve experienced only one listing that our buyer wanted that offered less than a 3% commission to the buyer agent. On the flip side, if the seller is offering a buyer agent bonus, or more than 3% , we rebate that to the buyer so that our motivations and advice can never be attributed to a commission amount. The seller on that listing offered 5% commission. If the seller had not acceeded the buyer was ready to take on another home. In that case, we wrote up the offer to include the 5% gap in paragraph 12 of the sales contract, where the seller assents to pay some of the buyer s closing costs, and the seller agreed. The 5% variance paid for by the seller afforded the buyer to complete the 3% commission for us. Do Realtors Avoid Listings That Pay Less Than 3% ?

The buyer s afford to pay the gap was without question nor can the seller save for that 5% offer. I find ridiculous the claim that agents will avoid of the discount brokers listing by consumer groups and others. Since we have the expertise to set up an Internet search portal, any buyer signing up with us or any Austin realtor gets informed through email each day of new catalog matching their need. I don t see how they can. We do this for every buyer. Search engines do not recognize the commission amounts offered on particular catalog.

I m not sure what percentages of other agents in Austin do the same, but it s an invaluable tool for us and our buyers, and it s given as part of our MLS system at no extra cost. Buyers will see ALL listings that fit their restrictions. The MLS technology inhibits a way for us to filter out those listings or hide them from the buyer. For those who say that realtors evade or blacklist listings that pay less than 3% , that s hogwash. When the buyer gets all listings and new ones that come up in the system about properties that go with their criteria they notify us and in return we show all listings of properties considered to be good buy. This is all for now but part 2 of How Discount Realtors Work needs to be checked out.

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