Who do you think pays the realtor?

Reminder to self: Do not drink water while reading John’s posts.

I’m enjoying this thread – and how do you all say tomato?

With all due respect Infowell – When a seller sets their price, do they include the cost of the realtor fees in their price to figure out their bottomline? I sure do. I do this so the buyer pays and I keep my net where it needs to be – that way I know where I’m going to come out in the end.

Sure the Realtor fees are on the seller side of the HUD-1 and I truly enjoy that when I close on a property. But I know in my heart I’m the one with the cash at the table, therefore, I’ve paid the fees.

This is zero disrespect to Realtors (as you all know by now, I’m a fan).

“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.”

I am not really in disagreement, just a mistatement of fact for some situations here, when I represent a buyer, it is always with a Buyer’s Representation Agreement, which is in fact a contract very similar to a Listing Agreement spelling out exactly what duties each party (buyer and agent) are repsonsible to perform. This includes allowing for representation, representation and compensation. Nearly 100% of the time the compensation although owed by the Buyer per our written agreement, is supplied by the Seller’s agent through cooperation.

WoW $CASH$ your wife is going to be upset!

thats it I am calling her to let her know!!

looks like sofa city for you my friend!

Can I turn this into a poll

I don’t know which industry you meant John…you wouldn’t answer a direct question…just hint…insinuate…maybe it was Appraisers you feel are the true source of fraud. Couldn’t tell…you wouldn’t answer…still haven’t.

Doesn’t really matter any longer.

Tami,

Glad to meet you.

I am certainly glad you are not taking any of this seriously, I know I am not.

John $Cash$ Locke

Infowell,

Nice try asking a question when a question is asked, if I lower the amount for gas to $5 will that help you answer the question since you are good with numbers?

At the current price of gas it would be a very short trip and I don’t think I can use a lower denomination or we both would be pushing the car on the trip.

John $Cash$ Locke

i dont think that the HUD-1 shows where everything is coming & going properly.

for example what about the POC and YSP. does it say the mrtg broker screwed the buyer and got
a kickback from the lender. NO IT JOLLY WELL DOESN"T.

does this mean i’m against all mrtg brokers just coz i don’t like to see a POC or YSP on my HUD-1?

Interesting topic, to say the least, and technically, you could probably answer either way and be correct. The seller pays the commission, as stated in the listing agreement. But how does he pay it? With the money the buyer paid for his house.

To use a perfect analogy, it’s kind of like court ordered child support. The non custodial parent pays the court, either by sending a check, or by having it payroll deducted. The court then pays the parent who has custody. But the court REALLY doesn’t pay it, the non custodial parent does. It doesn’t come out of the courts pocket, it comes out of the non custodial parents pocket. The court pays it, but how? With the money from the non custodial parent.

Boy, the child support stories I could tell…

you are 100% correct bobo the hud-1 shows that its a seller expence

After they jacked the price of the house up to justify it!

John very nice to meet you as well!

I know people are passionate about their side, so I read, learn and enjoy.

Have a great day all :slight_smile:

bobo -

Spot-on. In this scenario, we could get really technical and say neither the buyer nor the seller is paying - the buyer’s lender is paying (like I said earlier).

Stephen,

Then technically speaking who is responsible for the lenders loan on the purchase the buyer or the seller?

So then the seller pays the commission out of funds from the buyers lender. Looks like the buyer is still responsible for the loan as the seller has no committment to the lender, however the buyer does and at this point it is really the buyers money as he is the one who borrowed it and has to repay it.

In your scenario the lender is giving away the money with no one having any responsibilty for the loan, sounds like Dorean all over again.

John $Cash$ Locke

John,

True, very true.