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I have a question – if a seller's agent refuses to share his commission with a buyer's agent, is it common for the buyer's agent to make an offer on the property after subtracting for his commission (for example, the buyer wants to offer $400K and the buyer's agent commission is 3% so the buyer's agent only offers $388K after subtracting for his $12K commission)? Is this the way it should be done and is it fair to the buyer? Please let me know.
Thank you for your help!
Last edited by RollingStone1521; 03-28-2010 at 05:48 PM..
Reason: Formatting errors
I have a question – if a seller's agent refuses to share his commission with a buyer's agent, is it common for the buyer's agent to make an offer on the property after subtracting for his commission (for example, the buyer wants to offer $400K and the buyer's agent commission is 3% so the buyer's agent only offers $388K after subtracting for his $12K commission)? Is this the way it should be done and is it fair to the buyer? Please let me know.
Submitting an offer that includes a buyer agent commission to be paid by the seller is a common practice. There are some nuances to consider, though, which I am sure Elke will explain to you in her DM.
When I am representing the buyer I always break my fee out from the offer. If the seller was only offering 1% to a buyer agent, I would still submit the offer with my fee, be it 2 or 3%.
One thing to remember is that there is a difference between a BUYER'S agents, who represent the buyer, and the selling agent, who BRINGS the buyer, but represents the seller.
When I asked 4 months ago about how the buyers agent commission was paid I was told it was paid by the sellers agent. Now it apears that that info was wrong and by using a buyers agent you may be low balling the seller by deducting the commission off the offer.
It could cause you to lose the house as our offer is now your offer less the buyers agent commission.
I thought it was a bad idea imported from CA when I first heard about it, now I am convinced.
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