The Complete Guide to Negotiating Buyers Agent Commission [2019] | Hauseit®


It can be tempting for sellers to try to re-negotiate
the buyer agent’s fee after an offer has been submitted. However, negotiating buyers agent commission
comes with many risks and is highly frowned upon by the real estate community. Can Sellers Negotiate the Buyer Agent Fee? Sellers can negotiate the buyer agent’s
fee if they are listing their home For Sale By Owner (FSBO). Keep in mind that this means no listing agreement
has been signed with a listing broker, and the property is not listed on the MLS. As a result, a FSBO seller will have no contractual
obligations to do anything or pay anyone. He or she will typically have manually listed
their own home for sale on a website or two, and perhaps put a for sale sign outside their
home. What If You Are Selling with an Agent? It’s very difficult to re-negotiate the
buyer agent’s commission if you are listing your home with a broker. That’s because your listing agent has already
contractually offered commission to buyers’ agents on your behalf in the MLS. This offer of commission is contractual as
soon as it’s entered into the MLS, and your listing broker is liable for it on your behalf. This means that if you don’t pay the buyer
agent their commission, your listing broker will have to pay it on your behalf. However, it is theoretically possible that
the buyer agent’s commission can be reduced after a property has already been listed on
the MLS. However, most MLS co-brokerage agreements
will require that both the listing broker and the buyer’s broker agree in writing
to the reduction. Is Asking a Realtor to Reduce Commission Ok? No. It’s very poor etiquette to ask the buyer’s
agent to unilaterally take less commission, or even worse, to ask the buyer’s agent
to collect their own commission directly from the buyer. Remember that buyers never have to pay commission
or even sign any sort of exclusivity agreement, and that it is sellers who normally pay the
entire broker commission. This commission is then split typically equally
between the seller’s agent and the buyer’s agent, per MLS co-brokerage rules. As a result, for you to ask the buyer’s
agent to essentially collect their own fee obviously violates the spirit and the very
idea of co-broking. Think about it. By doing so aren’t you effectively refusing
to co-broke and thus egregiously violating MLS rules? Furthermore, if you refuse to co-broke, aren’t
you effectively a FSBO listing? Even worse, by asking a buyer’s Realtor
to collect their own fee hurts the listing broker’s reputation. Will other buyers’ agents in the future
shun the broker’s listings because it isn’t clear whether he or she will co-broke or follow
MLS rules? Buyer Asking Realtor to Reduce Commission It’s an entirely different matter altogether
when the buyer proactively asks their agent to reduce the commission. This obviously puts the buyer’s agent in
a difficult situation. Do they oblige in order to get a deal done,
or do they push back? Fortunately for sellers, this isn’t an issue
for them or their listing agent as long as the matter is initiated by the buyer and discussed
directly between the buyer and the buyer’s agent. Sometimes this will happen because the buyer
is aware of the possibility of receiving a Hauseit Buyer Closing Credit, and wants their
agent to take less commission in order to get a deal done, or to credit part of the
commission to cover their closing costs.

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