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broker commission

Started by umbrella27
over 16 years ago
Posts: 62
Member since: May 2007
Discussion about
If I find an apt without a broker, why does the sellers broker automatically assume they get to keep the entire commission. Is that legal.
Response by NWT
over 16 years ago
Posts: 6643
Member since: Sep 2008

Yes, it's both legal and standard practice.

The seller agreed to x% commission with her broker. How the broker divvies it up with the buyer's broker (if any) is up to the broker.

Not an issue for the buyer.

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Response by KeithBurkhardt
over 16 years ago
Posts: 2986
Member since: Aug 2008

Yet another reason why a "buyers broker" can add value to your purchase if offering a rebate. Umbrella: Do you feel you received a better deal (financially speaking) going in unrepresented?

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Response by umbrella27
over 16 years ago
Posts: 62
Member since: May 2007

Definitely did. The broker was more motivated to push me b/c he gets the entire commission

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Response by KeithBurkhardt
over 16 years ago
Posts: 2986
Member since: Aug 2008

Pushing harder was of some importance during the "bubble years", with less buyers bidding not quite as important in today's market. Also any good(honest) broker presents all offers to the owner, whom makes the final decision about all offers. Most owners base this on the price being offered, qualification of the buyer(if there are multiple bids).
But do you feel the "owner" reduced the price more aggressively since she/he could theoretically save 3% since you were unrepresented.

Or would you say the broker simply "pushed" harder for you to serve his own needs(more money).

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Response by beholder
over 16 years ago
Posts: 113
Member since: Dec 2008

theburkhardtgroup, what is the difference between you and any other broker? Are you saying that a buyer's interest supersedes your own, like that of an attorney's?

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Response by manhattanfox
over 16 years ago
Posts: 1275
Member since: Sep 2007

umbrella -- You may have been the best offer on various front. Why are you concerned about the commission when it is paid by the seller?

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