Licensed IL Broker here. Question: Signed Buyer agreement is $1000 for Broker’s compensation. Seller is offering $800. Is the additional $200 paid by Buyer? I do understand the capped amount I can receive is stated in the Buyer’s Agreement…… If the remaining $200 is due from the Buyer, what does a “negotiation” look like if the Buyer wants the Seller to pay the additional funds? When does the Buyer (and Designated Agent) know what the compensation is? I inquired about CC from a Listing Broker and was told, “Yes, the Seller is offering ‘some compensation.’ Although he would not say how much. Sorry to be wordy……… Appreciate the info!
Hello! if your agreement has language that your buyer is required to pay you $1000, and the seller is only willing to pay $800, then technically your buyer is responsible to pay through balance $200. But, you’d want to make sure that your buyer understood this on the onset when signing the agreement. I usually tell my buyers something like “Ms. Buyer - after the July 2024 NAR legal changes I know have to have you sign a buyer-broker representation agreement before I can show you homes. The form has a line that list what my brokerage’s profession fee is as a percentage of the home purchase value. The seller typically pays the buyer agent commission, and in our offer we will ask the seller to pay the buyer agent fee. I’m going to fill in the fee amount as 3.0 %, and most sellers will pay in the 2.0% to 2.5% range, and some will pay 3.0%. I’m OK with 2.0-3.0% (or whatever range you are OK with), but if the seller declines to pay that amount, then we will have a discussion on how to proceed. Legally, I can come down from what we write on the form, but I can’t go up, so that’s why I put 3.0%, and if it ends up being a lesser number then we will revise the form to go down to the amount the seller agrees to pay” Hope that helps. Feel free to call me at (708) 608-3000 to talk through as my text response may not capture your exact situation. If interested, check out my group at exp realty that operates with no additional split or fees www.agentwolfpackgroup.com 🐺
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Licensed IL Broker here.
Question: Signed Buyer agreement is $1000 for Broker’s compensation. Seller is offering $800. Is the additional $200 paid by Buyer?
I do understand the capped amount I can receive is stated in the Buyer’s Agreement……
If the remaining $200 is due from the Buyer, what does a “negotiation” look like if the Buyer wants the Seller to pay the additional funds?
When does the Buyer (and Designated Agent) know what the compensation is? I inquired about CC from a Listing Broker and was told, “Yes, the Seller is offering ‘some compensation.’ Although he would not say how much.
Sorry to be wordy………
Appreciate the info!
Hello!
if your agreement has language that your buyer is required to pay you $1000, and the seller is only willing to pay $800, then technically your buyer is responsible to pay through balance $200. But, you’d want to make sure that your buyer understood this on the onset when signing the agreement.
I usually tell my buyers something like “Ms. Buyer - after the July 2024 NAR legal changes I know have to have you sign a buyer-broker representation agreement before I can show you homes. The form has a line that list what my brokerage’s profession fee is as a percentage of the home purchase value. The seller typically pays the buyer agent commission, and in our offer we will ask the seller to pay the buyer agent fee. I’m going to fill in the fee amount as 3.0 %, and most sellers will pay in the 2.0% to 2.5% range, and some will pay 3.0%. I’m OK with 2.0-3.0% (or whatever range you are OK with), but if the seller declines to pay that amount, then we will have a discussion on how to proceed. Legally, I can come down from what we write on the form, but I can’t go up, so that’s why I put 3.0%, and if it ends up being a lesser number then we will revise the form to go down to the amount the seller agrees to pay”
Hope that helps. Feel free to call me at (708) 608-3000 to talk through as my text response may not capture your exact situation.
If interested, check out my group at exp realty that operates with no additional split or fees www.agentwolfpackgroup.com 🐺