Why do all Realtors say Buyer Representation is free because commission is paid by the seller?

A question Asked by Brian, 91711 • Yesterday at 8:58pm  If I am a buyer, and my loan is funding the purchase, and proceeds from my loan pay the commission, isn’t the buyer indirectly paying the commission.  On that logic, shouldn’t the buyer be able to negotiate % point commission reduction as credited back to the buyer.  Also if a transaction is being handled by a double dipping broker, shouldn’t the buyer be able to ask for another percentage concession!

Obviously, I can’t let this pass my early morning routine without offering my own opinion. To spill it out:

All professional services are not free. When you hire a subcontractor for his service to make repairs, don’t you anticipate that he gets paid for the services rendered. It is the same principle that applies to other professional fee.

Instead of calculating the pecuniary equivalent of the realtor’s services  for his/her the fiduciary duties by having your own representation in the transaction, why not assess the importance of having someone watching out for your interest in the transaction.

That is the beauty and essence of MLS wherein the buyer representative gets paid for the services through co-broking. Otherwise, the buyers have to pay it. Although, there are instances when buyers get pursued for the commission owed to the buyer’s agent.

Because your mind deduced that you are paying for the loan and therefore paying the buyer the fee is somehow distorted. You are purchasing a home–your home. Hence, you should get a loan to buy it.

Without the realtor’s assistance and expertise, would you able to find that home according to the terms and conditions you are satisfied with? 

Moreover, the commission payment should not even be factored into the price of the house you paid for. The price of the home is market-driven. How will you know that you are paying the house for what it is worth for? Through the help and assistance of your agent.

Without representation, will you be able to gather all the information necessary to make you an informed buyer?

I could not stress enough that getting a buyer representation is critical in home buying process.

With your rationale, you are discounting the benefits and advantages of having a buyer’s agent work for you. We work harder than you think and we earn every single penny we get paid for our service.

As for the dual agency: if you think you can get a better deal because you can divert a portion or percentage of the listing commission as a buyer’s credit—think again. For instance, you are purchasing a home for $200K and you want 1% of the listing agent’s commission to be credited to you. That is $2000 to your pocket. Have you ever thought that with own representation, you can get the house for $5000 less or more. This is just an example and every transaction is unique.

Also, there is a RESPA law to observe with regards to buyer’s credit coming from the service providers.

Best of luck to you.


About Maria Gilda Racelis

I am a full-time realtor and a no-nonsense individual when it comes to rendering services to my clients. I take my job and the responsibility it entails seriously. My clients come first. I ensure that they know and feel I am working for their best interest. However, I do not carry out tasks to compromise my principle. I conduct my business with pride, honesty and integrity. I will do whatever it takes to meet their goals while adhering to my principle. "And the connection I make with the clients throughout the process, that to me is how I define success." Buying and selling homes can be very stressful. It is my job to make the process easy and fun as can possibly be for my clients. I take personal gratification from the smile on the faces of highly satisfied clients. I have amassed 100% positive and rewarding testimonials from my clients after many years of experience in real estate business. To enhance competency in the field for my clients' benefit, I continually seek to further my knowledge and expertise. With this in mind, I hold the following designations and expect to add more as the need for them arise. If you are looking to work with a competent professional realtor who will put the best foot forward for your best interest, you have just read her profile. I am always available to listen to your concerns and questions. Please do not hesitate to contact me anytime.
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