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Who pays the Buyer's
Agent's fee?
Again, it's your choice and negotiable.
In 90% of sales,  the Buyer chooses to designate payment of its Exclusive
Agent's fees, from what is commonly called
"transaction proceeds", at close of escrow.
Other choices
are, direct payment of a fixed fee, hourly rates, a pre-agreed percentage
of the sales price (or the asking price), or a portion from each side
of the table (with disclosure and mutual agreement). Everything with fees
is negotiable in accord with individual office broker policy and should
be explained in detail at the signing of the Exclusive Buyer's Agent's Agreement.
My fee is 3.0% of the listed or asking
price. Let's say
the house is listed at $100,000.00. My fee is $3,000.00. On average
here in Tucson, Arizona, homes sell for 97% of listed price (in this example that would
be $97,000.00).
Traditionally,
the listing office pays one-half of the funds allocated in the listing
agreement for marketing of the property, to the Buyer’s Agent. In the Tucson
Community we see listing fees that vary but most generally 6.0% to 7.0%
are the numbers most frequently used. One-half of 6% is 3% and one-half
of 7% is 3.5%.
It
is fair that
the Listing Agent,
who by law represents the Seller,
be paid
more for getting a higher price
for the property. Conversely, if the Buyers
Agent is paid more for getting a higher price for the Seller -- that person
is working for the Seller and not the Buyer. Therefore,
we have removed
that conflict of interest
and charge a straight 3.0% of the listed or
asking price including premiums and upgrades on new or to be-built homes,
regardless of what the Seller and the Seller’s Agent is offering to the
Buyer’s Agent.
"Money Back" --
How?
If the Seller
and Its Agent is offering to pay to the Buyer's Agent 3.5% of the selling
price --
that surplus goes to the Buyer
on the HUD-1
Settlement Sheet.
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