“Can I write my offer with you (the listing agent) instead of my own agent? I don’t want to have to pay my buyer’s agent or sign some type of contract with them.”
A buyer asked me this question recently and it highlighted the confusion that still remains regarding exactly how real estate agents are paid. The first thing to note is that if you have an agent represent you in the purchase of a home, that agent will need to be paid somehow for the service they are providing. The payment for that service will be specifically outlined in your Buyer Broker agreement, which is a contract that you will enter into with the agent representing you, prior to submitting an offer. If you choose to have the listing agent represent you, you will still be required to enter into a Buyer Broker agreement with that agent prior to submitting your offer. Writing an offer directly with the listing agent does not negate that step – if a listing agent is representing both buyer and seller, they are due a commission for both sides.
The Buyer Broker agreement will specify whether your agent is representing you for one specific property, or if you are exclusively working with that agent for any and all purchases. If you have signed an exclusive agreement with an agent, that Realtor may be due a commission even if you buy another property with that listing agent. So make sure that you understand the terms of your agreement – how long does the agreement last, what properties are included, and how much commission will the agent receive in exchange for representing you. If you choose to write a single offer directly with a listing agent, make sure that your Buyer Broker agreement with that agent is for that specific property only.
Secondly, understand that as a buyer you will always know in advance, prior to finalizing a contractual acceptance, whether or not you will be required to pay an agent out of your own pocket. Most buyers will request, as a condition of their offer, that the seller cover the cost of the obligation set forth in their buyer broker agreement to pay their agent. If the seller does not agree to this term, they would have to counter you back to specifically remove that request, and you would still have to sign that you accept that change. At that point, you have the ability to either agree to cover your agent’s commission yourself, or to walk away from the purchase. You will always be aware of this prior to an acceptance being finalized, so under no circumstance will you find out after entering into a contract that you have to bring in additional money to pay your agent.
Kari Carson
DRE #01903828
(818) 424-5537
Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area