Do Buyers Pay Commission?
The main concern most people have is “who pays what” in a typical residential transaction, with regard to realtor fees. And the answer is fairly simple: in most standard residential transactions, the seller pays ALL of the commission. The commission amount is negotiated between the seller and their broker, and becomes included in the listing contract, along with the timeline for the listing contract, and other important contract details. This commission is then split between the seller’s broker and the buyer’s broker (sometimes referred to as the selling broker). The split can vary, depending on the listing, or broker involved. There is no “standard” commission amount, as such a thing would be considered to be price-fixing, and subject to anti-trust law. Each and every broker must determine for themselves what their service is worth, and how to be competitive within the marketplace.
In most cases the buyer will NOT pay their realtor a fee. This is one very good reason why all buyers should employ a broker to represent them in a purchase. Some may think that they may be able to get a better deal by not using a broker. However, since a seller has already committed to a listing price and commission amount with their listing broker, it’s MORE likely that they will simply enjoy a higher net profit from the sale. The moral of the story is that a buyer should always utilize a broker, even if they are confident in their ability to handle the purchase themselves. As broker’s, we have a fiduciary duty to perform how we are directed, and a broker will not unilaterally make a decision for their principal. Utilizing a broker will help to make sure that things go smoothly and will be able to offer advice that someone unfamiliar with the nuances of a particular real estate market like Portland.
There is simply no good reason not to.
If you’re thinking about purchasing a home or investment property in the Portland area, we’d love to help. Give us a call!