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Then it makes no sense for him to seek a commission. There is no benefit to him to do so. You two just need to decide upon an acceptable price.
Most likely, he just feels that he can get the priced reduced if you agree to pay a commission...but if you're willing to reduce your net in that fashion then I assume that you would just as easily simply reduce the price. For both of you, it's all about the net price. (It's actually better for him just to purchase based upon a lower price, without messing around with a commission in the calculations.)
I agree. He's probably angling to get me to lower the price without explicitly saying so. Obviously if the buyer pulls additional money out of the sale proceeds (which he keeps for himself as a "commission"), then that changes the net price.
I spent from 1972 until I finally retired as an investment real estate broker.
I was taught in real estate law classes at a major university and other places, only a fool that has a real estate licence takes a commission when they buy real estate for their own account. When you take a commission, you place yourself in a position if the seller gets unhappy for any reason that they can sue you for failing to protect them for one reason or another. And I once had a whole bunch of decisions from courts, that showed the results of what the agent did and having taken a commission when he/she was representing himself/herself. The court will very much hold an agent buying in his/her account and hold them to a much higher level than they would if the agent was being paid to represent another seller. NAR does the same.
It is much safer for the agent, to just deduct the amount of the commission (or more) from the offer they make to buy the property. That way, the agent does not a professional responsibility to the seller if the seller wants to try to cause trouble later. I bought a lot of real estate for my own account, and never took, one penny in commission on any of those transactions. I have put together multiparty exchanges say maybe 8 different properties with different owners, and never got a commission on even one of the properties. However, I came out ahead by at least the amount of the commission on the total transaction. On every contract, I stated I was acting as a principal, and was not acting as an agent for any party, and was not receiving or sharing in any commission, just as the attorney's taught us.
Example: I remember on situation used as an example in the university law course I took, where an agent bought a home for he and his family. He told the buyers it was worth only $200,000 and he took a 6% commission. The appraiser came back at $250,000. The seller sued him for the $50,000 higher value, on the principal the agent had told the seller in his professional opinion and knowledge the house was worth $50,000 less than the appraisal while he was the sellers agent. The judgement was for the plaintiff, and the agent had to pay the seller $50,000 difference, plus court costs.
If he had said he would pay $185,000 ($200,000 less $15,000 commission) he would not have been guilty and had to pay $50,000 plus court costs to the seller. As a buyer not an agent representing himself, he is not required to act in the sellers best interest, as long as he does not commit fraud. Acting as an agent for the seller and receiving a commission, just the opposite. The agent is responsible to do the best job he can for the seller. He is held to a much higher standard than an agent selling to another party, when he is a principal.
Over the years, I saw a lot of Realtors that wished they had not acted as an agent and taken a commission on property they bought or sold in their own account. As my old real estate law professor taught us, though it is legal to do so, 'Only a fool when holding a real estate license, buying property in their own account gets involved as an agent, and takes a commission'.
He can have any commission he wants as long as the amount you get from he sale does not change. IF he wants a $30,000 commission, just increase the sale price $30,000.
If he wants a commission from the agreed sale price, then he is just asking you to lower the price. Treat it as an offer for a lower price and reject or accept it accordingly.
I spent from 1972 until I finally retired as an investment real estate broker.
I was taught in real estate law classes at a major university and other places, only a fool that has a real estate licence takes a commission when they buy real estate for their own account. When you take a commission, you place yourself in a position if the seller gets unhappy for any reason that they can sue you for failing to protect them for one reason or another. And I once had a whole bunch of decisions from courts, that showed the results of what the agent did and having taken a commission when he/she was representing himself/herself. The court will very much hold an agent buying in his/her account and hold them to a much higher level than they would if the agent was being paid to represent another seller. NAR does the same.
It is much safer for the agent, to just deduct the amount of the commission (or more) from the offer they make to buy the property. That way, the agent does not a professional responsibility to the seller if the seller wants to try to cause trouble later. I bought a lot of real estate for my own account, and never took, one penny in commission on any of those transactions. I have put together multiparty exchanges say maybe 8 different properties with different owners, and never got a commission on even one of the properties. However, I came out ahead by at least the amount of the commission on the total transaction. On every contract, I stated I was acting as a principal, and was not acting as an agent for any party, and was not receiving or sharing in any commission, just as the attorney's taught us.
Example: I remember on situation used as an example in the university law course I took, where an agent bought a home for he and his family. He told the buyers it was worth only $200,000 and he took a 6% commission. The appraiser came back at $250,000. The seller sued him for the $50,000 higher value, on the principal the agent had told the seller in his professional opinion and knowledge the house was worth $50,000 less than the appraisal while he was the sellers agent. The judgement was for the plaintiff, and the agent had to pay the seller $50,000 difference, plus court costs.
If he had said he would pay $185,000 ($200,000 less $15,000 commission) he would not have been guilty and had to pay $50,000 plus court costs to the seller. As a buyer not an agent representing himself, he is not required to act in the sellers best interest, as long as he does not commit fraud. Acting as an agent for the seller and receiving a commission, just the opposite. The agent is responsible to do the best job he can for the seller. He is held to a much higher standard than an agent selling to another party, when he is a principal.
Over the years, I saw a lot of Realtors that wished they had not acted as an agent and taken a commission on property they bought or sold in their own account. As my old real estate law professor taught us, though it is legal to do so, 'Only a fool when holding a real estate license, buying property in their own account gets involved as an agent, and takes a commission'.
Sounds just like my brother the broker.
He is the Broker of Record for a very large portfolio and it is policy to pay full commission to those bringing in the deals... typically tens of millions for one transaction.
The Deal is the focus... not holding up someone for a commission and the industry knows this and bird dogs deals which has made the firm very successful...
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