Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Seller lists their home for sale with a recommended (by CMA) listing price of $350,000. They have rolled the buyer's agent 2.5% commission into this listing price. Along comes a buyer and offers $343,000. The seller decides to accept this offer because he has bought a new home already and is anxious to move on. But oops, that cushion for the commission that was 'rolled in' is no longer there. Now who pays for said commission?
Seller lists their home for sale with a recommended (by CMA) listing price of $350,000. They have rolled the buyer's agent 2.5% commission into this listing price. Along comes a buyer and offers $343,000. The seller decides to accept this offer because he has bought a new home already and is anxious to move on. But oops, that cushion for the commission that was 'rolled in' is no longer there. Now who pays for said commission?
Buyer pays their agent.
They can come without an agent, or agent decline payment, and the seller can net just as much when the buyer saves money.
It doesn't matter. The seller has a contract with the listing broker to pay x% of the selling price. Period. The seller pays the listing broker and so on....
Buyer pays their agent.
They can come without an agent, or agent decline payment, and the seller can net just as much when the buyer saves money.
It's really pretty simple.
Wait, you're setting up a whole new scenario here which is not comparing apples to apples. The scenario I was talking about the buyer did NOT come without an agent and their agent did NOT decline payment. And in the example I gave, when it comes out of the seller's share at the closing it will no longer be 'rolled in', which means the buyer is not paying for it.
It's not simple at all Mike actually - just continuing to state that something is so doesn't make it so, and it's kind of insulting to the rest of us who, according to you, just don't 'get it'.
Wait, you're setting up a whole new scenario here which is not comparing apples to apples. The scenario I was talking about the buyer did NOT come without an agent and their agent did NOT decline payment. And in the example I gave, when it comes out of the seller's share at the closing it will no longer be 'rolled in', which means the buyer is not paying for it.
It's not simple at all Mike actually - just continuing to state that something is so doesn't make it so, and it's kind of insulting to the rest of us who, according to you, just don't 'get it'.
I don't "state that something is so." I speak truth.
How is it insulting if you feel you cannot get it? It certainly is not meant to be, although I may be a bit less sensitive to the feelings of professionals who promote "free" buyers agency to get clients and then put their spoon in the soup at closing.
For my part, I have illustrated several examples on this many times.
My all-time favorite was in this thread, with Pop giving the kid $10 so the kid can tell Mom, "I paid for it myself!"
It is just about perfect!
That is the most direct comparison of the fallacy of Seller pays under the structure of the current most popular residential real estate commission model.
When you have people with the NC Real Estate Commission, NC Forms committees, legal at NC Association of REALTORS nodding in some agreement, it makes me wonder why professionals don't get it, and why they continue to mislead the public.
I really fault NAR for promoting the proposition that sellers pay, along with the CFPB who have no clue what they are doing when they stumble into agency.
Who writes the check ...and where does that money come from?
the closing attorney. and it comes from the Seller's side of the ledger, though the Seller's get his money from the buyer and their lender, if one.
I said the Listing Agent!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
