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Updated almost 4 years ago,
Question about buyer paying realtor commission
Hello everyone,
I am searching for some clarity/insight when it comes to relator commissions since I have heard a buyer does not pay for their relator's commission but in my limited experience I encountered otherwise.
Last year, my partner purchased a property for $555k, the listing agent's commission was 2% and his realtor's commission was 3% so in his closing costs there was an additional $5,550 fee to cover his realtor's commission. The additional fee seemed excessive since I had found the property (he did not like the listings coming through from the realtor's searches) and this was the first property he went to go see with her but he had signed an agreement to work with her only. He was not aware of the 3% commission until it came down to getting the loan together. Did he get taken advantage of or is this usually how it works with differences in the seller's and buyer's commission rates? He had asked her if we could ask the seller to cover the extra 1% but she refused.
I am now looking to purchase my first property and I want to get a better idea of the cash I will need. I also had signed a contract to work with her only but that contract expired last October and I am reluctant to renew. She has spent more time with me showing me properties I have found but I also did not hear from her for about 8 months until recently.
Advice is greatly appreciated. Thank you in advance.