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Alan May, Home is where the hearth is. (Jameson Sotheby's International Realty)

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Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

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.

Jan 10, 2018 11:20 AM
Rainmaker
1,052,186
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

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. 

Jan 10, 2018 09:35 AM
Ambassador
2,684,009
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   It's on the Seller, per the Closing Disclosure.

Jan 10, 2018 10:24 AM
Ambassador
2,436,099
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

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.

Jan 10, 2018 10:11 AM
Rainmaker
2,220,323
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

You are correct.

Jan 11, 2018 04:59 AM
Rainmaker
613,494
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Without the buyers money, there is no commission...

Eve

Jan 10, 2018 03:14 PM
Ambassador
3,344,906
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

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. 

Jan 10, 2018 03:04 PM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Seller pays with the buyer's money.

Jan 10, 2018 02:47 PM
Rainmaker
599,274
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I'm going to have to agree with you. Sorry I couldn't be more contentious.

Jan 10, 2018 02:40 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have had the buyer pay a small commission before and on FSBO's

Jan 10, 2018 02:37 PM
Rainmaker
758,035
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

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. 

Jan 10, 2018 01:44 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

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.

Jan 10, 2018 01:31 PM
Rainmaker
3,626,530
James Dray
Fathom Realty - Bentonville, AR

No sir, I won't you're right

Jan 10, 2018 01:26 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

This seller pay the commission. 

Jan 10, 2018 12:52 PM
Rainer
130,857
Steve Penner
Royal LePage Dynamic RE / Pro Ledger Bookkeeping Software - Winnipeg, MB
REALTOR® / Pro Ledger Online (owner)

certainly... seller pays the fee... and is the one on the hook

Jan 10, 2018 12:07 PM
Ambassador
2,178,543
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

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. 

Jan 10, 2018 11:25 AM
Rainmaker
5,216,359
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Nope, you are right in this situation. It is coming out of the seller's pocket!

Jan 10, 2018 10:50 AM
Rainmaker
1,844,271
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I agree. 

Jan 10, 2018 10:21 AM
Rainmaker
7,835,329
Roy Kelley
Retired - Gaithersburg, MD

In some FSBO situations, the buyer agent will be compensated by the purchaser.

Jan 10, 2018 10:01 AM
Rainmaker
577,750
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

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.

Jan 10, 2018 09:52 AM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Yes, agree, seller has to come up to the closing with the $$$

Dec 20, 2018 09:26 PM
Ambassador
6,392,929
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

When is the last time you had a buyer who was willing to pay the commission instead of having the seller pay it?

 

Jan 12, 2018 09:30 PM
Rainmaker
5,868,472
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

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.

Jan 12, 2018 05:51 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Alan May Can't do it. The seller pays the fee.

Jan 11, 2018 11:10 AM
Rainer
225,526
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

I don't see what the discussion is all about. Seller pays the commission unless otherwise noted in the contract..

Jan 11, 2018 08:34 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I agree.

Jan 11, 2018 06:39 AM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

After I figure out if the chicken or the egg came first I will then tackle this question.

Jan 11, 2018 05:41 AM
Rainmaker
2,182,502
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

50-50

Jan 11, 2018 05:18 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Does it matter as long as it's paid?? 

Jan 11, 2018 05:05 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Nina has answered.

Jan 11, 2018 04:33 AM
Rainmaker
716,049
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

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?

Jan 10, 2018 08:35 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I agree with you that the seller is paying the fee and the fee is the marketing fee to sell the house.

Jan 10, 2018 06:55 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

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?

Jan 10, 2018 06:06 PM
Rainmaker
2,781,123
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The bank pays when in foreclosure. When not, the seller does unless...?

Jan 10, 2018 06:03 PM
Rainmaker
4,160,276
John Pusa
Glendale, CA

Alan May in this scenario seller pays the commission.

Jan 10, 2018 04:59 PM
Rainmaker
961,383
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Just follow the money.  

Jan 10, 2018 04:52 PM
Ambassador
3,164,119
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

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. 

Jan 10, 2018 02:15 PM
Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

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.

Jan 10, 2018 12:28 PM