By Tom Raub, CCIM
How much does Buyer representation cost?
All fees are negotiable. Typical arrangements include:
- % of purchase price
- Flat fee
- Hourly rate + (flat fee or % or purchase price.)
Who pays the Buyer's Agent fee?
The Principal is responsible for payment of the fee. This may be paid directly to the Agent or more typically is deducted from the purchase price buyer offers for the property.
Example: Buyer wishes to purchase property offered at $200,000, Buyer's Agent fee is X%.
Buyer offers $200,000 for property with the condition that seller rebate at closing X% of the purchase price to buyer to cover Buyer's Agent's fee.
If the Seller is represented by an Agent does the buyer pay a double commission?
No. Selling Agents typically view a Buyer's Agent transaction similar to a broker’s agent transaction and a portion of their fee to be used by the seller towards the rebate the seller is being asked to pay.
What are some of the services and benefits to a Buyer with a Buyer-Client agreement that are not available to the buyer when an Agent represents seller?
