who pays a buyer's broker

Julia - you are right. A buyer's broker almost always collects their commission from the seller and it is split between the listing broker and the buyer's broker. In some markets, there is a buyer's broker agreement, where paperwork is filled out and a buyer pays their broker directly. But it's extremely rare in Manhattan. Check out this link for a comprehensive list of potential costs to you, a buyer, in NYC:

http://www.elliman.com/reports-and-guides/guides/new-york-city/closing-costs

Would any buyers ever contract with a broker if they had to pay out of their pocket? This is the sales angle of the buyer's broker. They hit attach on to the buyer and get the seller to pay them.

julia's back!

It is paid by seller but comes out of the pocket of the buyer. Only one person brings the money to the closing table, the buyer.

In a strictly legal sense, the buyer's broker (a.k.a. "selling agent") is paid by the seller's broker (a.k.a. "listing agent").

The listing agent has a contractual relationship with the seller, through the listing agreement. The brokers have a contractual relationship through their co-brokerage agreement. If both firms are REBNY members, this relationship is defined by the Universal Co-Brokerage Agreement. Otherwise, a separate contract may be needed.

The mechanics of the transaction work as follows: the commission specified in the listing agreement (usually 5 or 6%) is subtracted from the gross proceeds at closing, and divided between the brokers according to their co-brokerage agreement.

Whether you regard this money as coming from the buyer or the seller is largely a matter of semantics. The money starts out with the buyer, and gets waylaid on its way to the seller.

It might be most accurate to say that the buyer and seller together pay both brokers. The seller agrees to pay the commission when she lists the apartment. The buyer agrees to abide by the terms of the listing agreement when she signs the contract to purchase.

Julia - To answer you last question: if you don't buy, you don't owe anybody anything, unless you have agreed to pay separately for specific services.

west 81st...thank you and everyone.

Welcome back julia.

why do you post under the name of julia?

You think it's me? That's funny, I always thought julia was you.

you're the only one.

why?

I'm the only one what?

Why what?

why jim boner?

why lucille?

why all the others?

your belief is that I am:

Jim Hones
Lucille
Julia

who else do you believe I am?

isn;t that enough?

You did just say "all the others."

ridiculous.

ridiculous.

Are you at least close Julia?
You've been looking a looong time.