Have any buyers actually a real estate brokers commission in Washington?

[Ben Mardis]

for some reason I can't go back and edit the post title... 

Hi all,

I just met with a real estate broker and they let me know that in Washington the buyer is technically responsible for paying the buyers broker commission upon closing. He told me that he always gets the seller to pay though. 

Is this a Washington thing or am I not understanding correctly? I thought the seller and buyers broker split the commission.

[Jay Hinrichs]

Quote from @Russell Brazil:

Quote from @Don Konipol:

Quote from @Ben Mardis:

for some reason I can't go back and edit the post title... 

Hi all,

I just met with a real estate broker and they let me know that in Washington the buyer is technically responsible for paying the buyers broker commission upon closing. He told me that he always gets the seller to pay though. 

Is this a Washington thing or am I not understanding correctly? I thought the seller and buyers broker split the commission.

When I obtained by broker license in 1979 all commission were 6%, and the NAR did not bother denying that this was a “set”, i.e. NOT negotiated rate. LOL.  There were no “buyer” representation in RESIDENTIAL, buyer broker was only practiced in the commercial arena.  In residential the broker showing listings on MLS not the buyer was a SUB AGENT of the seller’s broker, and operated under a sub agency contract.  Hence, they “shared” in 1/2 the commission.  In fact listing brokers and agents often dreamt of selling their own listing to a buyer that either they found or a buyer who was not “represented” so that could pocket the whole commission.  Later, rules were changed requiring the broker obtain the acknowledgement and permission of all parties to operate as an intermediary rather than an agent of one party. 
The only reason to have the buyer’s broker receive a commission out of the seller’s proceeds rather than paid directly from the buyer is to roll the buyer’s broker commission into the total price paid for the property so as to qualify the property for a higher loan amount based on sale price.  If lemders were able and willing to add the 2-3% of a buyers broker commission to the sale price when calculating LTV, there would be no difference to any party and the cost of services would become much clearer.  
When MLS was created in most areas across the country, NAR became a virtual monopoly in residential real estate sales controlling 89% of the market.  Thru the years the most biased of NAR operating procedures have been eliminated - so called fixed commission, dual representation, ban on discount brokers, and access to the MLS being limited to NAR members.  But, what critics of NAR fail to realize is that this has resulted in the most efficient system of transferring real property in the world.  I regard the regulations handed down to curb NAR as “tweaking” the system to make it fairer and better.  Let’s hope the baby isn’t thrown out with the bath water. 

Yeah people have little idea what a pain in the *** it is to locate and buy property in other countries. I've been house hunting in Greece, Hungary, Estonia, Latvia, and Portugal. It's a pain in the *** to even find properties for sale with no MLS. Many cases you need to pay brokers up front regardless of whether you actually buy something.

Russ,  since rules have changed now.. are sellers now just signing listings for say 2 to 3% and no commish to the buyers brokers.. ?  or are listings still being signed at 4 to 7% and buyer is still paying the agent and listing broker is making the 4 to 7% ..  what are you seeing in the real world. ???

let me give you a real world that just happened to my Daughter in Vegas.. She has an FHA buyer looking for first house.. they make offer with her making a normal 2.5 or 3% fee plus buyer of course needs closing costs.. Sellers agree's to closing cost but will not pay her anything. Buyer of course does not have the money to pay my daughter.. And they love the house excited etc etc.. Puts my daughter in a tough spot.. I know in hindsight and she has learned now that you need to have a buyers brokers agreement and I guess now you have to make sure the buyer has the money to pay you if the seller wont.. There is a limit you can do to raising the price to cover closing costs and buyer broker commish..
She got it negotiated finally for her to make 5k from Seller.. however that is half of what her normal fee would be..

I think there is going to be a lot of this.. Ms. Lori and I were chatting and she said what she is now seeing is on the BAC commish is zero.  So sounds like with agents moving in that direction that is going to add another level of negotiations and put a ton of pressure on Buyers agents to get these fee's signed up front.

One of the Agents that just sold one of my new constructions.. was telling me he showed a buyer houses and then said i need a buyers brokers and you have to pay me and the guy said no.  going to be a big learning curve here..