Edit* Have any buyers in Washington actually paid the broker commission?

[Ben Mardis]

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.

[Ty Coutts]

Hello, Ben Mardis, here are the specifics for Washington State:

Buyer’s Responsibility: Technically, the buyer is responsible for paying their broker's commission. However, it's common practice for the seller to cover this cost. This means that the buyer's broker’s commission is usually taken care of as part of the overall transaction, similar to the standard practice mentioned above.

Broker’s Agreement: The buyer's agent will typically negotiate this arrangement upfront, ensuring that the seller covers the commission from the sale proceeds. It’s part of the agent's duties to make this clear in the purchase agreement or the buyer's brokerage agreement.

Clarification: The broker you met with was likely emphasizing that, according to the letter of the law or the standard contract language, the buyer is technically responsible for their agent's commission. However, in practice, the broker always negotiates for the seller to pay this commission.

Negotiation Tactics: Good brokers negotiate to ensure that the buyer is not out of pocket for their agent’s commission, aligning with common practices and making the process easier for the buyer.

How to navigate this:

Ask for Clarification: If you’re unsure or need reassurance, ask your broker to explain how the commission will be handled in your specific transaction.

Review Agreements: Carefully review the buyer’s brokerage agreement and the purchase agreement to ensure that the commission details are clear and that the seller is covering the buyer’s agent commission as negotiated.

[Steve Vaughan]

The only industry where you, as seller, for decades were expected to pay for the other team's coach. 

Can you imagine if it was that way in sports? Or court? 

Now, as seller, you may pay for your opponents coach/counsel/agent, but at least it's a negotiated concession.

Here is $15k Mr/Mrs Buyer.  That's it.  Use it to buy-down your loan, offset some closing costs, or pay your coach.

I love that it forces buyers to realize their agent isn't free to them.  Bonus if you buy solo, it will now be recognized and we can use our seller concessions to buy down our rate or whatnot.