The business environment is getting more competitive every day. New companies and new concepts are being born daily. There is always someone trying to do it better and cheaper than what has been done previously.
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Better is Better
One reason that brokers and agents like buyer-broker agreements is that the buyer’s agent knows up front what level of commission he or she is working for. With a buyer-broker agreement a buyer’s agent is not hesitant to show property where the seller may be offering a low commission or even no commission at all. This is because the commission is going to be paid by the buyer. (Typically, a buyer-broker agreement will stipulate that the buyer’s obligation will be offset by any amount the seller is paying. For example, a buyer-broker agreement might call for the buyer’s agent to receive a commission of 2.3% of the selling price. If, in a given transaction, the seller had agreed to pay the buyer’s agent 1.5%, then the buyer’s obligation would be .8%)
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Defaulting Buyer Owes Commission Under Buyer-Broker Agreement
One reason that brokers and agents like buyer-broker agreements is that the buyer’s agent knows up front what level of commission he or she is working for. With a buyer-broker agreement a buyer’s agent is not hesitant to show property where the seller may be offering a low commission or even no commission at all. This is because the commission is going to be paid by the buyer. (Typically, a buyer-broker agreement will stipulate that the buyer’s obligation will be offset by any amount the seller is paying. For example, a buyer-broker agreement might call for the buyer’s agent to receive a commission of 2.3% of the selling price. If, in a given transaction, the seller had agreed to pay the buyer’s agent 1.5%, then the buyer’s obligation would be .8%)
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Defaulting Buyer Owes Commission Under Buyer-Broker Agreement
Recently we considered a situation where a buyer, who had executed a buyer-broker agreement with his agent, backed out of a purchase transaction. In that case, the buyer owed a commission to his agent because the agreement stipulated that the commission was earned when the buyer entered into the purchase agreement.
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Listing Agent May be Owed Commission Under Various Different Circumstances
Pretty much like everybody else in the soft economy, real estate agents are taking a pay cut and that’s giving sellers some bargaining power.
Sellers Get A Break On Commissions
