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As a home buyer is it possible to avoid the seller from having to pay commission to their seller agent?
I know that the seller is the one that pays the commission but wouldn't that mean they are less likely to negotiate in terms of lowering the price for the home? I think the buyer in that sense would still indirectly pay for the commission. Is the seller legally bound to pay the selling agent the commission or not?This is in Arizona.
Is it likely that a home seller that hired a real estate agent would want to avoid paying the commission or would they rather use the agent to protect themselves?
So once the seller hires a real estate agent he is stuck with paying for the commission even if he/she did not interact with the seller?
I guess the only way is to get in contact with the seller and wait till the contract with the agent expires.
I meant to say even if he/she did not interact with the buyer not seller.
I saw that some of you took offense to my question on trying to avoid paying the commission to the real estate agent. I didn't fully understand how real estate agents get paid and I didn't know that they usually Only get paid by the commission they get when they sale a house and what their duties are to earn their money.
After I read how it all works I see how it is unfair to try to avoid the commission that they earned by investing in advertising and research. I will no longer consider trying to avoid the commission as they did earn it. My initial mentality was that I needed to cut the middleman but it is not so anymore.I probably would have not found the homes I am considering buying unless a real estate agent had placed the ad online.
Unfortunately real estate agents as I found have a conflict of interest when it comes to negotiating the price of the home because the higher the price of the home the higher the commission they get.I did find that with one agent I dealt with that
implied he did not find homes in the price range I had given him when I had found many of them online. And he was just trying to get me to buy in a higher price range. I can't overgeneralize and say all agents are like this but they are have good motivation to not negotiate the for the best prices that they could potentially do.
9 Answers
- glennLv 71 decade agoFavorite Answer
I am a real estate agent in Texas since 1978. I never market a property without having a binding contract in place that would allow me to get paid if the property sells during a certain time period.
I get no money up front and none per hour. I only get paid when and if the property sells. In my contract it says that when the contract ends I can give the seller a list of names and those people would be "protected" an additional 90 days beyond the listing. This allows me to continue working and spending time and money right up until the last second of the listing and know that if any of these people buy the house I will get paid.
The whole system is pretty risky for the agent- and that is one of the reasons the compensation may seem high. I don't really think anyone would want to pay me per hour or any other way when I am not successful- so I think this is a pretty good system.
The marketing efforts are pretty widely spread so I never know who has been attracted by them- so I could never be sure that you did not notice this house thru my efforts.
- real estate guyLv 71 decade ago
Yes, the seller needs to pay the broker/realtor no matter what. They have an agreement.
In regards to your comment that "guess the only way is to get in contact with the seller and wait till the contract with the agent expires" This is NOT going to work. There is always a clause in the listing agreement that the agent is STILL due the commission for a set period of time (usually 6 months), if the seller sells to a buyer that came in during the listing period - JUST SO THIS TYPE OF CRAP DOESN"T HAPPEN.
What you are wanting to do is dishonest - and I hope that as a business major you don't plan to carry this type of practice to your career.
- philospher77Lv 61 decade ago
I will also add that if the seller has a contract with an agent, and you two make a deal to sell after waiting for the contract to expire, the seller may STILL owe the agent that commission, since you two would be deliberately acting in such a way as to deprive them of something that was contractually agreed upon. So that won't work either. Furthermore, if the seller has contracted with an agent to sell the home, one of the reasons is that they think that they can get a better price since they have better data to work with, and they have someone to deal with the hassles and legalities involved in selling a place. I, personally, would not give that up in order to LOWER the price for a buyer!
If you don't want to deal with agents, then look at FSBO (for sale by owner) properties. You may get a better price. You may not.
- acermillLv 71 decade ago
The seller must ALWAYS pay the commission agreed to in the listing contract, unless the listing agent somehow agrees to take a lesser commission. The seller uses a listing agent for various reasons. Amongst those reasons are the advertising provided and the professional assistance provided by the listing agent. When under a listing contract, the seller always pays the commission in the contract, regardless of how the buyer was eventually discovered.
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- godgedLv 71 decade ago
Most sellers hire a Realtor to protect their investment, if they wanted to sell FSBO, they would have done so. The seller enters a contract to pay the commission and this is paid when the transaction closes. Sellers typically factor the cost of commission into their price, but that does not mean that they are not willing to negotiate.
Do you want to work and not get paid? But that is what you are trying to do here. I hope that the seller refers your sorry self to their agent and slams the door in your face.
Source(s): Oregon Realtor - 1 decade ago
the seller has to pay the commision because thats how the real estate agent makes money. if he doesnt get commision then whats the point of selling the house. the only way to avoid that fee is it the seller sells the home privately and finds a buyer/does all the work themself then they dont need an agent
- Anonymous1 decade ago
A buyer has no say in the contractual agreement between the seller and the seller's agent. That agreement is none of their business.
- LandlordLv 71 decade ago
They have to pay or there is no way the title will convey.
The commission is one set amount, it is split between the 2 agents.
- DanielleLv 71 decade ago
FSBO transactions are rare I think, where no realtors are used. realtors are a good tool because they refer you to loan people and do all the underwriting dirty work. at least mine did. who cares if the seller pays the commission or not, just make an offer and it'll either be accepted or rejected.