5,104,931
Seller pays a commission to his/her listing agent to sell the home. The listing agent through mls offers to share his/her commission with a selling agent who brings them the buyer.
-
Richard Weeks
Dallas, TX
-
Kathleen Daniels, Prob...
San Jose, CA
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
1,052,186
I shall not, as I agree. The money came from the seller in your example.
This is a chicken-egg-omelette-compost question that has been bandied about ad nauseum. It's perceptual, and absolute truth is probably not obtainable.
The answer is 'someone' and it's a moving target.
Let's shoot at it.
-
Mary Yonkers
Erie, PA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Kat Palmiotti
Kalispell, MT
-
Candice A. Donofrio
Fort Mohave, AZ
2,684,009
It's on the Seller, per the Closing Disclosure.
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
2,436,099
In your scenario, where the seller brings money to the closing, the commission is paid by the seller. In most cases, the commission is paid by the seller, but it's provided by the buyer/bank. So you could argue either way who is actually paying it. But in your scenario, the seller is definitely paying the commission so you are correct.
-
Mary Yonkers
Erie, PA
-
Carol Williams
Wenatchee, WA
2,220,323
613,494
Without the buyers money, there is no commission...
Eve
-
Mary Yonkers
Erie, PA
3,344,906
I lean in your direction on this issue. I do believe the seller pays. I have heard arguments that the buyer pays. I am not sold on that argument.
-
Mary Yonkers
Erie, PA
1,502,998
599,274
I'm going to have to agree with you. Sorry I couldn't be more contentious.
-
Mary Yonkers
Erie, PA
3,986,258
I have had the buyer pay a small commission before and on FSBO's
-
Mary Yonkers
Erie, PA
758,035
The seller pays the fee. The money used comes from the buyer but it's in exchange for the house, not the house including the agent's fee.
-
Mary Yonkers
Erie, PA
1,712,676
No matter whether you ask for closing cost or not the buyer always pays in my opinion. If you ask for it the price goes up and you finance closing cost. If you pay it yourself then again a buyers expense.
-
Mary Yonkers
Erie, PA
3,626,530
1,622,432
130,857
certainly... seller pays the fee... and is the one on the hook
-
Mary Yonkers
Erie, PA
2,178,543
I get where you're coming from, Alan. Did the owner refinance to take money out to buy a new car or pay debt? Or did the value decrease. Or, or, or...
Perhaps the buyer is paying the commission in the purchase price and the owner is bringing money to the table to pay for the additional debt incurred or to compensate for the loss in value/equity, whatever. It's a non-issue really. There is no commission paid without a buyer and seller exchanging monies.
In the end... the seller IS the one who contracted to pay a commission to the agency. He just needs the buyers money to do so.
-
Mary Yonkers
Erie, PA
5,216,359
Nope, you are right in this situation. It is coming out of the seller's pocket!
-
Mary Yonkers
Erie, PA
1,844,271
7,835,329
In some FSBO situations, the buyer agent will be compensated by the purchaser.
-
Mary Yonkers
Erie, PA
577,750
In this scenario, I am presuming that it is not a Power of Sale.. the Seller has listed his home for sale and he still owes $10,000 on his mortgage? If that is the case, then yes it is the Seller who is payng the commission.
-
Mary Yonkers
Erie, PA
1,598,452
6,392,929
When is the last time you had a buyer who was willing to pay the commission instead of having the seller pay it?
5,868,472
In those days where the seller had to sell, but had no money, buyers did cough up the extra if they truly wanted the home. However, that is usually not the case.
1,466,207
225,526
I don't see what the discussion is all about. Seller pays the commission unless otherwise noted in the contract..
4,800,082
4,882,355
After I figure out if the chicken or the egg came first I will then tackle this question.
2,182,502
3,071,489
4,434,127
716,049
What does the listing agreement say?
A typical listing agreement would have a fee for the listing and the splits for the brokers. What does it say?
3,988,007
I agree with you that the seller is paying the fee and the fee is the marketing fee to sell the house.
4,319,419
Alan May - at the end of the transaction, Seller OWNS the money which is disbursed by the attorney. So it is seller who pays the fees.
And... How can you be wrong, my friend?
2,781,123
The bank pays when in foreclosure. When not, the seller does unless...?
4,160,276
961,383
3,164,119
Seller pays, sometimes the buyer is the person bringing the funds to the table, but in end that money goes to the seller who then pays things with it. But in your scenario is the seller for sure.
1,231,853
Does it really matter who pays? If the seller wants to sell and the buyer wants to buy, the fee for the agents involved comes out of the transaction. The buyer pays & gets deed/keys; the seller sells the property and receives the balance after expenses are paid.