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What % should I pay a sellers agent who will also be my buyer's agent after the sell?
I'm from TX and want to sell my home. An agent has offered to be my seller agent at a discount if I retain her as a buyers agent when I buy. Problem is...I have no idea what the % range should be in the first place. I know when I buy a house, their seller will pay her 3% but that's all i know so far.
4 Answers
- DonaldLv 78 years ago
First, I really don't understand the logic of the folks who suggest you'd be better off with two agents. You could be, based on the agents' skills and abilities. But, financially, you'll be better off with a negotiated discount with one.
Here's how to figure it:
Let's assume that commissions where you are--as you suggest--are 6%. (It's negotiable.) You don't have any control what your agent will receive when acting as your buyer's agent. It could be up to 6%, depending on whether she has to split it with her broker.
As a listing agent, before any broker split, she'll receive either 3% (if there's a separate buyer's agent involved) or the full 6% if she handles both ends of the transaction. So: Let's assume that you and she agree that you'll pay her 6% as a listing agent.
What should you pay her if she's also your buyer's agent? Anywhere from 6% (representing no savings for you) down to 0% (so all she'd make is the commission when you buy).
My opinion: 6% is too high. 0% is too low. Personally, I'd suggest 4%. It's significantly more than she'd receive if she was just your listing or buyer's agent. On the other hand, it's a 33% savings in commission for you.
Hope that helps.
- Alice LockwoodLv 48 years ago
The seller typically pays the commission, so why do you need a "buyers agent"? There's no such thing in my state. How about this, as for a discount or you'll simply go to another seller agent. I personally don't want to be committed to an agent.
3% is very small. It's 6% in some states. I'd rather sign up with a real estate agent who can sell my house fast and negotiate the best price, not with one who gives me a discount.
Anyway, if you want to find out what the range should be, just call another real estate agent and ask what their fees are.
Also, do you work for a large company that has an EAP (employee assistance plan)? If so, that typically includes free legal advice. You could then ask a lawyer the same question.
- Steve DLv 78 years ago
Looks like your normal rate is 6% down there since she is going to get 3% for acting as your agent to buy (buyers and seller's agents split the commission)...The problem you are going to run into is if you go much below 5%, other agents will not show the house since you will remove a lot of incentive (for example, if you agree on 4%, that is split two ways, so the buyers agent will get 2% which will then be split with the brokerage, so the agent walks away with 1% instead of 1.5% - that is a 33% decrease in income so why would a buyer's agent even bother showing your house). Shoot for 5%.
- 8 years ago
I had the same issue, I resolved my problem by getting another agent. It seemed a bit odd to me, think about it, , why should one person get 3 percent on either end and do only half the work if you're knowledgeable enough you should try to do it yourself and save yourself three percent....