Who do you think pays the realtor?

This is a very intersting topic and I want to word this fair to get honest answers!

Do you think that the seller pays the realtor and nothing comes from the buyer?

If so click seller!


Do you think the seller will increase the asking price of the home to cover the price of realtors commissions?

if so click buyer!

I agree the buyer pays this fee.
I have had many conversations with realtors and thier favorite saying?
Off the record we adjust the costs to cover what the seller needs are to recieve an acceptable offer to the seller.
Also the purchase price will be adjusted to cover our commission.
sshhhhhhhhhhhhhhhhhhhhhhhhh!!!( don’t tell anyone) :bigthumbup: :shocked: :wink:


how do you adjust the purchase price to cover the commission?

Lets say you were going to sell your home and you wanted to net 200k if you had it listed with a realtor would you not bring up the price to 212k to cover the realtors?

where as if I had no realtor you would sell it for 200k correct!

i sold my previous condo FSBO to a buyer who was not represented by an agent. he was an old roommate & friend of mine.

i had 3 offers. the highest was from a person represented by an agent.
i was going to pay the agent 2%. i told my friend to match the offer and we’d split the 2% that i would’ve paid the agent. i think it was a fair
deal for both of us.
i believe buyer pays for the buyers agent. however if you’re in a new area or you dont know anything about buying real estate, you should definitely use an agent. i also believe the seller pays the listing agent, so i’m speaking out of both sides of my mouth!!!

agents perform a valuable role. i think its over-rated and over-paid, but nonetheless quite valuable.


You haven’t delineated adequately - you’ve left too many variables to poll…

  • Whose realtor (the buyer’s or the seller’s)?
  • Is the subject property a current realtor listing or a FSBO?


From what I understand, the realtor sells the house according to the compartive analysis. Does that mean they tack on the extra realtors fees to the comps?

The lender. ;D

It’s a simple answer that people try to make complicated.

When are commissions paid? Answer: They are paid at the closing.

How do you get to a closing? Answer: You have to have a buyer.

Where do the funds come from to pay the commission? Answer: Okay, this one is a little tricky and where the debate usually starts. The funds technically come from the seller’s side of the HUD-1. However, those funds are supplied by the buyer.

So, who pays the commission? Answer: The buyer.


It doesn’t matter who the agent is representing or whether it’s a FSBO or MLS listed. An agent will not be paid a commission unless there is a closing.

I don’t know what the point of the question is, but I’m assuming that it’s something like ‘FSBO’ are better deals, cheaper, etc.

That’s not really the case. The average homeseller usually has no clue how to value their property, they are emotionally attached anyway, and most overprice their homes, sometimes greatly overpriced. Usually, the only way that an agent will show a FSBO is if their client specifically asks to see one. An agent will not present FSBO’s to their clients to see IF they want to view them. And as most buyers use an agent and/or MLS listed properties as their basis for finding a home, you’re greatly limiting your buyer pool as a FSBO.

As stated, most buyers use an agent and look at only MLS listed properties. Most buyers who choose to view a FSBO have some idea of property values and know what they want. They know when a house is over priced, and won’t look at them. Also, they fully expect the homeowner to discount the usual commission from the asking price.

That’s retail buyers. The only other buyer that FSBOs generally get are investors, and hopefully, everyone reading this knows that investors DON’T pay anywhere near full value.



You guyz think too much.

It’s a loaded poll. It should read…do you resent Agents Commissions?

“Where do the funds come from to pay the commission? Answer: Okay, this one is a little tricky and where the debate usually starts. The funds technically come from the seller’s side of the HUD-1. However, those funds are supplied by the buyer.”

Let’s tackle silly logic #1 of this debate first;

“Without a buyer the seller couldn’t pay commission…so technically…the buyer pays the commission.”

As I mentioned in another thread;

If you follow that premise then…the buyer is technically paying everything on the sellers side of the HUD-1.

According to the EXCLUSIVE SALE AND LISTING AGREEMENT (Item #6): Will vary SLIGHTLY from State to State.

  1. Closing Costs. Seller agrees to furnish and pay for a buyer’s policy of title insurance showing marketable title to the Property. Seller agrees to pay real estate excise tax and one-half of any escrow fees or such portion of escrow fees and any other fees or charges as provided by law in the case of FHA or VA financed sale. Rent, taxes, interest, reserves, assumed encumbrances, homeowner fees, and insurance are to be prorated between Seller and Buyer as of the data of closing.

I mean to follow silly logic #1…we’ve got to say everything on the Seller’s side of HUD-1…all of the above is paid by the Buyer (despite what the contract says) because, “without a buyer…there wouldn’t be a sale.”

Silly logic #2: “They just increase the sale price to cover the Agents commission, or closing costs.”

First…there IS NO RIGHT SALES PRICE. When recommending a listing price…most agents submit a RANGE which is based on seller motivation. That range will vary from Agent to Agent, and Appraiser’s opinion of value will vary as well.

Sales Prices are rarely increased to cover Agent’s commissions (even with FSBO’s). They’re typically increased to cover closing costs. So what? That’s traditional & normal…always has been.

Silly logic #3: A seller will simply reduce their asking price by the Broker’s Commission if they’re selling their house themselves.


Most Sellers will estimate Broker’s Commissions and PERHAPS reduce their asking price slightly…PERHAPS NOT.


Uh…yeah, it does matter whose agent and whether it is a FSBO!

If we are talking about the buyer’s agent and a FSBO, the seller has no fiduciary repsonsibility to any realtor but, depending upon the contract between the buyer and his representing agent, the buyer MIGHT have!

If the property is a “listing”, the listing agent and his/her broker have a contract with the seller for a fee, ususally 6%. The seller has the fiduciary repsponsibility to pay the realtor, NOT the buyer! Period, paragraph.

Here’s an example that should end most of the debate (except with the real hardcore who I don’t expect to give up):

A seller sells his house for some unforeseen reason. He owes more on the house than it is currently worth (for WHATEVER reason). He sells the house for $1,000 less than the payoff. At the closing he owes $1,000 to settle the note and mortgage AND he owes for the agreed upon realtor fees (usually 6%)…

THE QUESTION OF THE DAY: Whose pocket is the fee coming out of???

ANSWER: The seller’s because he has a fudiciary responsibility to the brokerage/agent because the listing he signed is a contract binding upon him and the brokerage/agent. The buyer has no contract with a real estate firm but if he’s being represented by a realtor and the property is a listed property, his agent will get paid the customary split.


“Here’s an example that should end most of the debate (except with the real hardcore who I don’t expect to give up):”

They’re ALL hardcore’s

I thought you were addressing me (I’m so use to being told “you’re only a salesperson” during these types of debates).

But I’m in total agreement with your post…it supports my argument.

Again…the poll should read…who here resents Real Estate Agents.


ROFL @ infowell!

I’m in agreement with you (at least this once!) because you’re right. If a seller lists his property with a realtor and the realtor brings him a qualified and ready buyer, the seller has a fiduciary liability to the realtor in the amount of the contracted rate (perhaps even if the seller decides not to sell!).


“ROFL @ infowell!”

I was wondering if you were going to catch that…I was being ironical.

This poll…these type of threads…are leading me to a regrettable & undeniable conclusion…

…my time could be spent much more wisely.


I agree with infowell but isint this fun?


This thread is just a light hearted discussion of where the money comes from to pay the commission, so you have a different point of view, however I was thinking why you think the poll should be "who resents real estate agents or real etate commissions.

Is it your feeling that anyone who disagrees with your theory resents agents and brokers?

John $Cash$ Locke

Always good to see ya $cash$

“Is it your feeling that anyone who disagrees with your theory resents agents and brokers?”

Who pays the Agents commission isn’t “my theory” John…it’s fact. It’s as simple as picking up the HUD-1 & looking at who pays the commission 99.99% of the time (Seller).

The argument presented here is akin to saying debits are really credits because without liabilities there’d be no assets (or visa versa).

However, it’s not JUST this thread that has me dissapointed. You made a comment to me yesterday in another thread…you referred to a blog & insinuated it held the secret to the source of ‘real estate fraud.’ You wouldn’t answer my question directly…just hinted, and claimed you ‘weren’t throwing stones.’

The results of this poll & attitudes similar to yours towards some real estate professions has lead me to my conclusion:

I’m a numbers guy…I digest data for a living, I’m very good at it, and that’s made me $$$'s. This poll & the comments that have insued tell me something as numbers invariably do.

And when numbers talk…I listen.


On hud-1 yes in reality NO!

That is like paying social security Dont worry you you get it all back!!!LOL


Well I guess I should really bust your bubble, since you think I resent real estate agents, I bet if I told my lovely wife who is a Real Estate Broker that I resented her I would be in big trouble don’t you think?

If you and I took a short car trip and we stopped for gas and I gave you $20 for gas and you pay the attendent the $20 and later on someone asks who paid for the gas on the trip what would you tell them.

John $Cash$ Locke