Saturday, July 10, 2010

Do realtors get paid a commission if I buy from a house that's for sale by owner?

I ask because my realtor is very adamantly against us buying a home we like but it's for sale by owner. The owner is not financing it.Do realtors get paid a commission if I buy from a house that's for sale by owner?
Of course they are against it because they stand to gain nothing from the transaction. They would get paid only if the realtor has listed the home (which the realtor has not in this case) OR if you signed a buyer's broker agreement with them, which could hook you in to paying them a fee depending on how the agreement was worded. If you did sign a buyer's broker agreement- which usually specifies ';all real property in'; a certain geographic area- could be a city, county or a state, you may be on the hook. If you did sign such an agreement, check with an attorney.Do realtors get paid a commission if I buy from a house that's for sale by owner?
They will only get a commission if you go through them.





In theory, for sale by owner, bypasses the real estate agent and their 7% cut. But, you still need to find someone to check out the house, make sure there isn't something seriously wrong with it.
they wont get any if its for sale by the owner itself .. agents wants a % of the sale .. thats why he wants you to look for another house
Well no, because the seller typically pays the sellers agents commission, along with the buyers agent. Unless your agent can set up an agreement with the seller and write it into the purchase contract.
I am a Realtor in Oregon. The other answers are correct in that the Realtor would only get paid if the seller of the ';For Sale by Owner'; would agree to pay the agent a percentage of the sales price OR if you as the buyer are willing to pay the agent a % of the sales price. Generally speaking, the agent will contact the seller of the home and try to work out an agreement with the seller or sometimes the buyer and seller will both contribute to the agent's fee. (Usually 2.5 to 3% rather than 6 or 7%). Just be sure the agent is representing you and not the seller. Based on this, I am not sure why the Realtor would be adamantly against you purchasing this home. You might want to ask the Realtor why he/she is against this home.
Have your realtor contact the owner of the FSBO property to see if they would be willing to work with them b/c he/she has a buyer that is very interested in the property. Your realtor could ask for 2 to 3% compensation, since they will be representing you in the deal, which would still be saving the owner of the property some big money.





With the way the market is today with thousands of homes on the market, homes that have been on the market for 4 to 8 months, the owner should be more than willing to compensate your realtor for bringing you to them.
Has she worked with you and done a good job? Is she knowledgeable and provided sound guidance? Has she listened carefully to your needs and shown you homes that fit those needs? See the fact is, a fsbo is just that because they don't want to pay a commission. She has probably spoken with them already and they have told her no, they won't pay her. So if you want to be represented and given sound advise about purchasing, you might just want her to be paid. Have her write it into the purchase agreement, asking that the sellers pay her a commission (of ? ) at closing if your purchase agreement is accepted. If they won't accept those terms, they really aren't too interested in selling at a fair price, or they are hiding something they know she will find.

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