So if each realtor fee is 2.7% and the sale price is set at 500,000, and the normal practice is for the seller to pay the buyer's agent, that would mean that the seller will pay 2.7% of 500k to their own agent, and 2.7% of 500k to the buyer's agent. The seller pays 27,000 in realtor fees, making the amount they received for their home effectively 473,000. If the buyer goes in knowing they will have to pay both realtor fees, the seller can list the house for 474,300 & a condition that the buyer pays all broker fees. So the buyer would pay 2.7%+2.7% (5.4%) on say 474,300, bringing the price paid by the buyer to $499,912.20. The seller has an extra $1300 after negotiating in this way rather than the practiced way, and the buyer also got about $80 off. The buyer & seller could meet closer to the middle. But it seems like it's good for the clients to negotiate in this way. It's not better for the realtors though.
That certainly is one way you could do a transaction. Anyone can pay broker fees, so long as it’s agreed upon. I think the intended outcome of the change in regulation is to encourage more parties to pay for the realtor representing them instead of it being commonly practiced where one party pays for both broker fees.
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So if each realtor fee is 2.7% and the sale price is set at 500,000, and the normal practice is for the seller to pay the buyer's agent, that would mean that the seller will pay 2.7% of 500k to their own agent, and 2.7% of 500k to the buyer's agent. The seller pays 27,000 in realtor fees, making the amount they received for their home effectively 473,000. If the buyer goes in knowing they will have to pay both realtor fees, the seller can list the house for 474,300 & a condition that the buyer pays all broker fees. So the buyer would pay 2.7%+2.7% (5.4%) on say 474,300, bringing the price paid by the buyer to $499,912.20. The seller has an extra $1300 after negotiating in this way rather than the practiced way, and the buyer also got about $80 off. The buyer & seller could meet closer to the middle. But it seems like it's good for the clients to negotiate in this way. It's not better for the realtors though.
That certainly is one way you could do a transaction. Anyone can pay broker fees, so long as it’s agreed upon. I think the intended outcome of the change in regulation is to encourage more parties to pay for the realtor representing them instead of it being commonly practiced where one party pays for both broker fees.
Could you please make a video for the saint louse university and it's areas as I'm going to move there soon
I wish you had been available years ago when I needed help. 🌷🍁
We'll be here if you need help in the future!