On an Association of Realtors, Inc. EXCLUSIVE RIGHT TO REPRESENT BUYER form it states “the Broker will make every effort to obtain payment of all or any part of this fee by the Seller of the property. "
The Buyers Agent will try to get the Seller to pay his or her commission fee.
The Buyer's Agent cannot actually do this because the Association of Realtors policy does not permit the Buyer's Realtor to approach the Seller to negotiate a commission or any other matter without the Seller's Agent. So for the Buyer's Agent to do anything of the sort they need the Seller's Agent permission or assistance.
This commission mystery is one of the “Great Real Estate Mysteries. "
The Buyers agent works in the best interest of the buyer so how can the Seller pay for the services of someone to work against them. Which is to secure the Sellers real estate at the best possible terms and at the lowest price for the Buyer. The real estate industry has devised this method of justifying this practice by informing the Seller that it's all right.
After all they are not paying the Buyer's Agent. The fee is coming out of the Seller's Agent's commission so the Seller is not paying for an opposing agent. In other words the Seller is not paying the Buyers Agent but they actually are paying the Buyer's Agents. The Seller is not paying the Buyer's Agent but the money to pay the Buyer's Agent is coming out of the Seller money. Is this making any sense to you? Good because it is not supposed too.
This is kind of like the Abbot and Costello's “Who's on first" routine.
All this smoke and mirrors is not necessary. Sellers need the Buyer's Agents. Sellers do not need the Seller's Agents but they certainly do need the Buyer's Agents.
Stop with the cloak and dagger show and just come out in the open and pay the people that the Sellers need the most. That is the people that bring the buyers to their property, the Buyer's Agents.
James Joseph has more than than 25 years experience in the Real Estate Industry. As a Principal, Builder and Developer he has purchased and sold hundreds of properties and he has Brokered many, many other transactions.
In his soon to be published book “The Real Estate Revolution" he demonstrates how the shift in focus of the marketplace to the Buyer has all but left the Seller as an abandoned class, without the benefit of proper representation by the Real Estate Community.
His mission is to bring about the much needed changes and reestablish control for the Seller once more.
If you are a Seller or Owner of property and have any questions please feel free to send them to Info@TodaysRealEstateRevolution.com I would be more than happy to help.