Buyer's agent commission

[Leland Hill]

Seeing more and more contracts where seller is paying buyer agent's commission. Contract will state something like seller is paying 3% of purchase price to selling broker (broker assisting buyer) at closing as a concession to buyer.

In So Cal, sellers are typically paying 2% to 3% of the buyer's agent commissions. CRMLS requires the listing agent to report the commissions and other concessions, and there are five categories to choose from when entering the concessions, including commissions.

 

[Joe Flacco]

Sellers have always paid the buyer agent commission.

 

[Zoe]

Sellers have always paid the buyer agent commission.

I wouldn't bet my life on that. The buyer could say I will pay everything needed.

Focus on MV definition and real property rights.

 

[Joe Flacco]

I wouldn't bet my life on that. The buyer could say I will pay everything needed.

Tiny uptick these days of buyers trying to buy unrepresented. Other than that, sellers always paid it because the listing broker is the one with the 5-6% commission agreement. The arrangement to pay the buyer agent was between the listing broker and the buyer broker.

 

[J Grant]

In So Cal, sellers are typically paying 2% to 3% of the buyer's agent commissions. CRMLS requires the listing agent to report the commissions and other concessions, and there are five categories to choose from when entering the concessions, including commissions.

A commission should not be counted as a concession unless it affects price enough to see it

Did you read the post I pasted it right from the source. Mortgage lender websites address it as well.

Sellers traditionally paid the so-called "buyer 's agent" commission - the difference is post NAR settlement, the verbiage changed a bit, and disclosures changed.

 

[J Grant]

Post 8 from the source.

 

[Lee Lansford ASA]

OK. Such a practice is one that is long-time established and as such it is not a seller concession.

 

[Joe Flacco]

OK. Such a practice is one that is long-time established and as such it is not a seller concession.

It now is a seller concession. It is a seller concession that is customary and occurs in 95% of transactions.

Does this change your stance on dollar per dollar closing credits now?

If I recall correctly, you have been a strong believer in dollar for dollar seller concessions based on net to seller. The thing about neighborhoods and markets where closing credits are typical and customary, it is not that different from the commissions.

 

[J Grant]

It now is a seller concession. It is a seller concession that is customary and occurs in 95% of transactions.

Does this change your stance on dollar per dollar closing credits now?

If I recall correctly, you have been a strong believer in dollar for dollar seller concessions based on net to seller. The thing about neighborhoods and markets where closing credits are typical and customary, it is not that different from the commissions.

What source are you using that a RE common paid by a seller is now a concession?

 

[Joe Flacco]

What source are you using that a RE common paid by a seller is now a concession?

Seller is covering costs or fees associated with purchasing a home. That is by definition a seller concession. It is not a seller concession that is expected to be reported in an appraisal report or adjusted for since it is customary.