Real Estate Agent Commissions....
In new york, the real estate agents divide their commissions very differently then the rest of the world. Any one know how exactly they do business in new york (as far as commissions)?
when you list your home for sale you negotiate a commission with the listing broker...the listing broker will share this total commission with the selling broker.(the listing broker determines how much he is willing to offer to the other brokers ) if the listing broker also happens to be the selling broker then the whole commission is theirs. there may be listing agents and selling agents involved whereby the commissions are further split which happens to be a typical scenario.
It just seems odd to me that there is the listing agent and the selling agent. Usually, there is the listing agent which in turn is the selling agent and the buyers agent. In this case, there is no buyers agent, who works for the buyer? From my point of view, I like my agent to be on my side and not to be working for the seller. Very strange way of conducting business. When I asked one of the agents working in nyc that would it be possible for one to obtain a buyers agent he replied ofcourse but then the buyuer would have to pay for the commission rather then tthe seller. From all the homes that I have bought i have never heard of giving commission to the agent from the buyers side. Please enlighten me on what is going on in ny... Thank you.
The buyers agent is actually called the sellers agent. Yes, confusing. There is the listing agent(agent listing the prop) and the seller agent(working for the buyer).
Us brokers, responsive to a lack of education and trying to hog as much of the commission as possible play many games. We say they are played in the best interest of our clients. But alas among us roses there are a few thorns.
It is my suggestion that if you are going to be involved in multiple acts of real estate it might pay you to find some Real Estate Agent friendly to your cause or better still your person.
I would merely inform this real estate person that you intend to be very active. If he,she or the ever popular it so desires, they may tag on your coat tail, or dress hem and in time get rich.
They must play open handed with you and in consideration of such treatment you will give them all your business. Yes you might even teach them a few things about structure of deals and analysis of transaction.
Remember most of us brokers come from restricted backgrounds and involved in the fiduciary relationship necessary in normal brokerage do not see all things as we should. Sort of like a horsey with blinders on.
I do hope this is helpful. Go for it.
Faithlessly Lucius
buyers agent is just that....an agent that works for the buyer..their commission is is also negotiated and paid by the buyer....in addition a listing broker (that is the broker that represents the seller) may offer a buyers agent a split on their part of the commission if they bring in a buyer. being a broker myself with all of my properties that i sell, i offer the selling broker and the buyers broker the same amount..the more brokers/agents i can bring into a property with their customers/clients the more likely i will sell the property for top dollar...i dont mind offering incentives such as additional bonuses on top of commissions if an agent can have a property in contract before a certain date...