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.
A friend in San Antonio told me his buyer’s agent want him to sign a contract of representation with a guaranteed percentage of commission from sale and small sign up fee to show houses (whether sale happens or not). Is this the new normal?
A friend in San Antonio told me his buyer’s agent want him to sign a contract of representation with a guaranteed percentage of commission from sale and small sign up fee to show houses (whether sale happens or not). Is this the new normal?
It is all negotiable.
I never have charged to show homes, but in this market it is hard to blame an agent for wanting some buyer financial skin in the game for showing.
It is easy to show many homes, write many offers, and not get a deal closed due to current market conditions, multiple offers, high prices.
But, IF IF IF I were to contemplate such a fee, I would also expect to credit some or all of it back to the buyer at a successful closing.
Guaranteed percentage of commission? That is nothing new in a buyers agency agreement. Agents need to be paid for their work.
Sellers and listing agents are trimming co-broke commissions for buyers agents in this market. Builders are trimming them way back, or avoiding paying them at all.
An agent cannot work for free, and needs assurances.
A buyer’s agent charges higher by the hour compared to other jobs of similar nature. If buyer agrees to 3%, would it effect buyer’s chances of getting the deal because seller’s agent is only charging seller 5% and can’t split 3% with buyer’s agent?
A buyer’s agent charges higher by the hour compared to other jobs of similar nature. If buyer agrees to 3%, would it effect buyer’s chances of getting the deal because seller’s agent is only charging 5 and can’t split 3% with buyer’s agent?
If you can get a buyers agent to agree to charge you by the hour, negotiate the hourly rate.
If you agree you will guarantee your agent 3%, you will make up the difference if the cobroke commission is lower.
That will have zero impact on any deal, as you will pay your agent directly instead of indirectly baking your agent commission into the price. Sellers will not care what additional amount you pay your agent directly.
I would't pay the buyers agent out of pocket. Ask your friend to talk to other agents. In this climate, most have little to do anyway, if there are few houses for sale, and some would likely take a chance on working only on the 2.5% split share of the seller's broker commission. Surely not 3%!
I would't pay the buyers agent out of pocket. Ask your friend to talk to other agents. In this climate, most have little to do anyway, if there are few houses for sale, and some would likely take a chance on working only on the 2.5% split share of the seller's broker commission. Surely not 3%!
This is very poor advice from a very limited perspective.
A friend in San Antonio told me his buyer’s agent want him to sign a contract of representation with a guaranteed percentage of commission from sale and small sign up fee to show houses (whether sale happens or not). Is this the new normal?
It's not unusual to have a buyer's agreement with a guaranteed percentage of commission when you buy. I have never heard of a small sign up fee, but that's just me. I do feel we're well compensated by the commission, but that doesn't pay the gas up front for the next few months of looking or make the buyer aware of the costs we have in doing business that way. Maybe a token fee up front would help with that.
I get why a buyer's agent would want the security of knowing they do have a client relationship and they won't spend a lot of time and money showing houses to someone who will end up buying without them. We've had it happen and it really hurts every time. We do have buyer's agreements but we're not always diligent about getting them signed. Even still, unless we're prepared to sue our former clients, it's always a risk we take with the commission payment structure. An agreement helps buyers understand there is in fact a relationship there that lasts the whole process, it's not just for this house or that one.
I would't pay the buyers agent out of pocket. Ask your friend to talk to other agents. In this climate, most have little to do anyway, if there are few houses for sale, and some would likely take a chance on working only on the 2.5% split share of the seller's broker commission. Surely not 3%!
The OP did not post a percentage. The agent may have been asking for a guarantee that was less than 2.5%. There are a few listings in my market, usually MLS entry-only, FSBO listings that are offering 1% or less.
The OP did not post a percentage. The agent may have been asking for a guarantee that was less than 2.5%. There are a few listings in my market, usually MLS entry-only, FSBO listings that are offering 1% or less.
Their agent is asking $500 upfront and 3% commission. They just moved from Brazil so don’t know how local market works here in USA.
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.
