l34rn3d t1_j65bnhc wrote
They don't make a commission on your buying.
But they definitely make a commision and charge for services provided when selling.
Unless your a serial house buyer. You don't give them any money or repeat business. The seller pays the fees. So they suck ip to seller as a tactic to push the price higher, increasing the commission.
They also meet 200 tire kickers a day, and in this market, they have no shortage of people wanting a house.
whomp1970 t1_j65d31a wrote
> They don't make a commission on your buying.
That's not true in my experience. Usually the seller's agent and the buyer's agent each get 3% of the sale price.
I'm renting right now, but shopping for a house to buy. So I'm not selling anything. I'm only buying.
I have an agent helping me look for a house to buy. He's shown me tons of houses that he's not selling himself.
If my agent didn't make a commission when I buy a house ... why the heck is he helping me at all??
Any-Growth8158 t1_j65diwx wrote
You are correct. The buyer and seller agents split the commission.
tdscanuck t1_j65dqop wrote
If they're *each* getting 3% (in the US) you're getting screwed. It should be 3% *total*, split 1.5% to each agent.
dmazzoni t1_j65eqji wrote
Do you have a source for 1.5% each? I've never heard that before and I've done dozens of real estate transactions in multiple states.
Here's a source showing 6%:
https://www.bankrate.com/real-estate/realtor-fees/
In most states, 6% is common (3% each)
In California, 5% is common (2.5% each).
tdscanuck t1_j6616nj wrote
I bought and sold three houses through the pandemic, all in WA…apparently our situation here is weird because of the high house prices.
But it’s entirely possible I’ve internalized the “3%” and 50/50 thing and screwed up the math.
whomp1970 t1_j65f7hd wrote
Maybe it matters more on location, or state, but I think your number is too low.
I've looked at tons of homes in my region. Here's one. Most of them say the same thing this one does: Buyer's agent commission = 2.5%. If you hover over that, it says:
> The seller is offering 2.5% of this home’s final sale price to the brokerage or agent representing the buyer.
And you can bet that at least another 2.5% is going to the seller's agent too.
So for this case, it's a total of 5%, not 6%, but I've definitely seen it up to 6% before.
> Typically, real estate commission is 5%–6% of the home’s sale price. In most areas, the buyer’s agent receives 2.5%–3% in commission and the seller’s agent receives 2.5%-3% in commission. This can vary by agent and location.
Now, I admit, I've seen people make deals with agents. An agent friend might take 1.5% as a favor. Or you might talk an agent into taking less if you don't rely on them to do as much as an agent typically does. Or you can do away with those commissions altogether in a private party sale.
But what I'm showing you above, is the norm in the situations I've been. And this is the third home I've bought in my lifetime.
tdscanuck t1_j65dnx5 wrote
That's not true. The seller pays the commission and it's split evenly between the buying and selling agent, unless there's some weird contract to the contrary. At least in the US.
dmazzoni t1_j65dvhb wrote
> They don't make a commission on your buying.
No, they almost always make a commission.
Technically the commission comes from the seller. In the sales contract it typically says what the distribution is, like 3% to the buyer's agent and 3% to the seller's. In California, 2.5% / 2.5% is common.
Occasionally a seller will try to sell "by owner" and not offer a commission to the buyer's agent, but that's still pretty rare.
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