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Updated over 2 years ago on . Most recent reply
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How did it become "normal" for sellers to pay the buyer's agent?
I'm in the process of selling my primary residence FSBO. We are in a very popular neighborhood, so for now, we won't be going through a listing agent. We are also real estate investors, and we've been on the buy and sell side of many transactions. I won't need help navigating the offer/contract/closing/etc process. However, I get constant calls from agents asking to list, or asking for commission if they bring a buyer.
I understand the value added by a listing agent - the have access to the MLS and marketing tools that I don't have. I also understand why a buyer's agent is valuable to to the buyer. They help the buyer find a suitable house and walk them through the process of the transaction.
So, my question is - Why are sellers expected to pay for a service for the buyer, especially when the buyer's agent's fiduciary duty is to the buyer? If a buyer wants someone else to do the legwork for them, shouldn't they be the one to pay for that service?
Most Popular Reply
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Think of it like a wholesale fee in reverse. They are being compensated for bringing you motivated buyers you may not find otherwise. If you can sell it without the buyer bringing a realtor, great. If the house sells quicker with the realtor bringing a buyer, you are saving on holding costs. Investors may be proactive and don't need much realtor involvement, but a lot of buyers need their hands held through the process. A retail buyer through a realtor may end up paying more in the end as they are probably not looking to low ball you or get seller financing or anything out of the customary.
I am not a realtor and occasionally get a annoyed with realtors, but I get their benefit too.