What is the buyer agent commission? How does that work?
The buyer’s broker commission or sometimes called buyer agent commission is the amount of money a Seller agrees to pay the broker representing the buyer as an inducement for other brokers to show and sell your home (remember that brokers earn the money and pay their agents. Agents do not get paid directly, hence the confusion between broker and agent). Typically, the commission is defined as a percentage of the selling price and is advertised in the agents information section of the listing in MLS. It is paid at closing out of proceeds and any restrictions or additional incentives are listed in the private remarks section of the listing agreement.
No matter which broker lists your home over 95% of the time another broker will sell your home. The typical fee in our Texas market is 3%. There is not a set commission rate paid to the Buyers broker. With all commissions the amount paid is negotiable and is negotiated when you enter a listing agreement. Unlike the selling price of the property, all fees and commissions are negotiated at the time of entering a listing agreement. The amount of the buyer’s broker commission is part of the selling strategy determined between the seller and the listing agent.
Sometimes we see a 4% buyers commissions offered and other bonus terms to induce buyer agents. Agents will show your home if you offer a reasonable commission. Agents may try harder to make sure your home is shown if additional compensation is offered.
Notice: This website contains general information about possible legal and financial matters. The information is not advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal or financial advice from your attorney, accountant or other professional legal services provider. If you have any specific questions about any legal and financial matter you should consult your attorney, accountant or other professional legal services