If I buy a 500,000 dollar house, pay CASH with no mortgage, where does the commission come from? You mention the 500,000 home in the video, but that was with a mortgage. Assuming the commission is 6%. Would I be paying an additional 15,000 commission (3% from me) and the seller pays 15,000 (3% from seller), making the home price 515,000 cash from me? Thanks for your time.
My understanding is…Seller would make a concession towards the buyer’s agent commission. It could be the entire 3% or less. You should ask the buyers agent what concessions the seller is giving prior to you seeing the home or signing the buyers agreement
Very good question! If you buy a $500K house and the "listing company" had a 6% commission, 3% is going to go to the buyer brokerage (someone you used). The listing brokerage will keep the other 3%. You do not owe any commission. However, your agent must find these things out prior to you making an offer. The listing agent will inform all "showing agents" of the compensation structure.
This is a good video about the new rules in real estate!
Great video, thanks, John and David!
Thank you so much John! I hope you are luvin life!!
If I buy a 500,000 dollar house, pay CASH with no mortgage, where does the commission come from? You mention the 500,000 home in the video, but that was with a mortgage. Assuming the commission is 6%. Would I be paying an additional 15,000 commission (3% from me) and the seller pays 15,000 (3% from seller), making the home price 515,000 cash from me? Thanks for your time.
My understanding is…Seller would make a concession towards the buyer’s agent commission. It could be the entire 3% or less. You should ask the buyers agent what concessions the seller is giving prior to you seeing the home or signing the buyers agreement
Very good question! If you buy a $500K house and the "listing company" had a 6% commission, 3% is going to go to the buyer brokerage (someone you used). The listing brokerage will keep the other 3%. You do not owe any commission. However, your agent must find these things out prior to you making an offer. The listing agent will inform all "showing agents" of the compensation structure.