Buyer Agency and State Law:
Brokers are required to have a mutually agreed agency agreement with the buyer before delivering real estate services such as showing homes. The parties agree on the services to be delivered by the broker, the term of the agreement and the broker’s compensation.
The Agency Agreement:
The agency agreement can be either exclusive with that broker from the start, non-exclusive at the start and turned exclusive in the future, or possibly an agreement for showing specific properties. This choice should be made after an interview with the broker and the measure of the buyer’s trust that broker can get the job done.
Buyer’s Agreement to Pay Buyer Broker Compensation:
Compensation is and always has been negotiable. The buyer broker may have a standard compensation in mind for their services. During the interview the parties can agree on compensation.
The Seller is not Obligated to Offer Compensation to the Buyer’s Broker:
This means that the seller may offer no compensation on the listing with the idea of negotiating buyer brokers compensation after receiving buyer’s offer.
Negotiation to have Seller Pay Buyer Broker Compensation:
If the buyer’s obligation to buyer broker is greater than the offer of compensation from the seller, the buyer can ask the seller to pay the full obligation.
The Buyer Might be Obligated to Pay Part or all of the Buyer Broker Compensation:
If the seller pays less than the buyer’s obligation to the buyer broker, the buyer may be obligated to pay the balance of what is due.
In summary, choose a buyer broker who is experienced, communicative, and dedicated to helping you find your perfect home. A broker you can trust to get the job done and one that you feel is worth their compensation. The right broker will make the entire home-buying journey much more manageable and enjoyable.
In summary, choose a buyer broker who is experienced, communicative, and dedicated to helping you find your perfect home. A broker you can trust to get the job done and one that you feel is worth their compensation. The right broker will make the entire home-buying journey much more manageable and enjoyable.
Have you been thinking about a move … it may be time to start planning? See my seller and buyer guides. They are morphed to meet the demands of the current market. When the time is right. Let’s get together to discuss your plans, needs and expectations.
Not all agents are REALTORS®. We are held to a higher standard. Beyond the education, we are held accountable to the Code of Ethics. Always ask, are you a REALTOR®?