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395 Realty: Advice for Buyers and Sellers about Commissions

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Q: Is a seller required to pay a 3 percent buyer’s agent commission?
A: This is probably the question asked most often by potential sellers. The answer is NO. Sellers absolutely do not HAVE to pay a 3 percent buyer’s agent commission. Buyers and their agent have entered into their own contract defining how much the buyer’s agent will be paid. The seller is free to offer whatever commission they want to a buyer’s agent. Keep in mind, the buyer could have negotiated anything different; how then would a seller even know what to offer? Remember, commissions are negotiable. 

Q: Is a buyer required to pay a 3 percent buyer’s agent commission?
 A: This is probably one of the most misunderstood and unasked questions from buyers. The answer is NO. Buyers and a buyer’s agent enter into a contract that deals with how much the buyer is willing to pay the agent. Even though many buyers’ agents are paid from the seller’s proceeds, how does a buyer even know what the seller of any property is offering to pay a buyer’s agent? Buyers should discuss the commissions and understand how to deal with situations in which the buyer’s agent contract is more or less than what the seller is offering to pay a buyer’s agent. Again, commissions are negotiable.

Written by: Kevin Hopkins and Greg Shahan

The Flat-Fee Team offers buyers and sellers a full-service option for the low flat fee of $1,995. Kevin Hopkins and Greg Shahan started 395 Realty as a full-service, flat-fee brokerage with six decades of combined experience to benefit their clients. 395 Realty’s main focus is to provide the highest level of service for a very competitive fee.