The Tug of War Over The Buyer’s Agent Commission
March 12th, 2008 Categories: Buying
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Unrepresented Buyer Wants Half The The Commission
I came across two different buyers recently and I asked if they were working with an agent. Both said they would represent themselves and they would negotiate the buyer’s agent commission.
For the sake of this discussion the seller and the listing broker negotiate a contract and the seller is to pay the listing broker a commission. The listing broker is offering a Buyer’s Agent Commission (BAC)
A Buyer comes along and says I don’t have an agent they want the commission.
One buyer asked, “I assume there are two commissions.”
There is actually only one commission paid by the seller. The listing broker can offer compensation to a broker for any amount they see fit. They can offer no compensation and expect the buyer’s agent to collect a commission from the buyer.
So if there is no agent representing the buyer, what should happen to the commission?
Should the unrepresented buyer be entitled to the commission?
What about the seller? After all they are the one paying the commission, shouldn’t they be entitled to it?
What about the listing agent shouldn’t they be entitled to it?
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