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Updated over 2 years ago on . Most recent reply

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86
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Jesse Smith
  • Rental Property Investor
  • Kansas City, MO
38
Votes |
86
Posts

How did it become "normal" for sellers to pay the buyer's agent?

Jesse Smith
  • Rental Property Investor
  • Kansas City, MO
Posted

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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324
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384
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Anna Buffkin
  • Investor
  • Pawleys Island, SC
384
Votes |
324
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Anna Buffkin
  • Investor
  • Pawleys Island, SC
Replied

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. 

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