REO's and Listing Agents

Hello to everyone reading this post,

If a REO or banked owned property is listed with agent or listing agent and the investor chooses to buy the property, does the bank and the investor split the listing agent commission, or is only one party in the transaction responsible for paying the agent that the bank used to list the property? (either investor or bank)

Example if the listing agent commission is 6%, the buyer will pay 3% and the bank will pay 3%
if the listing agent commission is 6%, the buyer will pay the entire commission or the bank will pay the entire commission?

Any replies are greatly appreciated

Call the agent who has the property listed and ask.

There is no fixed law about who pays the commission. Almost everything on a contract is negotiable. It’s easy enough to find out if you have to come up with additional money for the commission. All it takes is one phone call.

Normally, those transactions occur as any other retail sales, with the commission paid by the seller. With REOs, there is often a fixed lower commission - and the split can vary - but again, as a buyer, it’s not your responsibility normally.
In my area, there are basically 2 realtors that get 90% of the REOs, they take a lower commission in order to get all the listing.

You can approach the selling realtor directly and ask them if you can get a lower price for the house if they sell directly to you instead of going through a buyer’s agent.

Thanks for the information Tatertot and LoriK.