Skip to content

[Video] Who pays the Realtor’s commission???

VERY COMMON QUESTION, “WHO PAYS YOUR FEES”?

Let’s get down to the money-I like it. A majority of the time, it’s the seller that pays the commissions out of their proceeds from the sale. Let me explain some more…

“JOE, WHERE DOES IT SAY THE SELLER WILL PAY???”

Great question…easy answer. It’s stated in the listing agreement between the seller and the listing broker/agent (see below).

brokercommission

buyeragentcommission

“But I can get a better deal on a new home without a Realtor, RIGHT?!?!?”

In the case where it’s new construction, the builder covers these cost. Here is what I hear ALL THE TIME, some people want to avoid a Realtor because they think they can get a cheaper price. Maybe with a fly-by-night builder but this hasn’t been the case with the big boys (i.e. Lennar, Village Builders, Chesmar, Meritage, DR Horton, the list goes on and on…). In fact, Realtors bring them so many buyers that they offer us bonus’ on top of the normal 3% that can be up in the 10′s of thousands of dollars. I’m not going to deep on this case but I will say, the sales rep at the builder’s house works for and represents the builder. They have their employer’s interest and their own commission (that’s right, they get paid commission too) to take care of. And guess what? Unlike a Licensed Real Estate Agent, they have no code of ethics to follow nor do they have a legal obligation to look out for you and your family’s best interest. I understand there is going to be some people that don’t believe me. That’s perfectly fine. Know the market, know the developer, know the actual sold prices, then purchase. A “Zestimate” is not an actual sold price. With Texas being what’s called a “Non-Disclosure State” (meaning a buyer does not need to disclose publicly how much they purchased for), there are few actual sold prices available publicly.

Does that help? If you have any more questions, feel free to reach out.

Best,

Joe Garcia
josephg@kw.com

Scroll To Top