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Yes, the buyer agent works for the buyer and owes the buyer fiduciary duties. But it takes two parties to make a deal, and you are benefiting by getting your house sold.
You are paying your listing agent a total commission that then is split by your agent. Technically, you are not paying the buyer's agent commission, your agent is from their commission.
I'm not opposed to alternative buyer agent compensation models if they can be made to work. Lots of agents share your viewpoint. However, most buyers don't want to pay their agent when they can get "free" services by having the seller's listing agent pay.
With most buyers offering less than ideal cash positions, and little money down, they need to finance the commission payments in the loan.
I'm not opposed to alternative buyer agent compensation models if they can be made to work. Lots of agents share your viewpoint. However, most buyers don't want to pay their agent when they can get "free" services by having the seller's listing agent pay.
You know this goes both ways though. Agents tell buyers all the time that their service is "free" because we get paid via the listing agent. I do at least two deals every year where the buyer pays me directly. It's such a non-issue for them, but I don't think agents do the industry any favors when we tell buyers the service is "free."
I think a shift is occurring, very slowly, but I think more buyers are getting comfortable paying their agent directly. I DO think the outcome of that is that buyers will be more picky about their agent...and honestly, that's not a bad thing.
My brother is an employment lawyer, not in RE. Nonetheless, this was his reply (to the credit of most of you and to my chagrin, of course. One of you nailed this exactly as he replied. I am still waiting to hear from the RE lawyer.) Of course, I don't think the person who sends me a buyer is acting as a RE agent any more than I think a newspaper is acting as one by sending someone in reply to an ad. But I think I have proven already that I have a strong opinion totally unsupported by the law.
mea culpa
Without spending a lot of time researching it, I would say that to be acting as a real estate agent one must first be an agent. You are not an agent for yourself.
The question I have is that if you are offering me cash to bring you a buyer, am I acting as an agent by soliciting buyers? Then the question is not about the cash offer, but acting as an agent without a license.
It may not be illegal for you to offer cash to the buyer, but it might be illegal for the agent (middle man) to accept payment for sending you a buyer.
Of course, this is not based on anything other than a general knowledge of the law. I haven’t had time to specifically research the issue.
Last edited by GuyFriendly; 11-23-2009 at 10:37 AM..
Reason: took out coding
Paying referral or finder's fees to unlicensed people is indeed prohibited. Cordially,
Robert [name withheld], Esq.
My apologies to everyone. Hard lesson learned. You know your stuff and I am just a stubborn old man.
This thread came be closed.
I think you're going learn to like we agents on here, and I think we all think you are just doing your best to get your house sold.
Just read our posts with a matter of fact tone, not defensive, and I think you'll see we just don't want to see any consumers hurt in the process of buying and selling homes. We do our best to educate consumers (and often each other), and poke fun at each other in the process.
P.S. We are all stubborn and passionate too. Although, I am just a stubborn half old woman...
Best of luck on selling your home! I also learn a great deal here, main reason I participate.
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