{"id":116,"date":"2006-07-21T07:57:24","date_gmt":"2006-07-21T14:57:24","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=116"},"modified":"2006-07-26T22:19:34","modified_gmt":"2006-07-27T05:19:34","slug":"who-pays-whom-for-real-estate-follow-the-money","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/116\/who-pays-whom-for-real-estate-follow-the-money\/","title":{"rendered":"Who pays whom for real estate? Follow the money . . ."},"content":{"rendered":"

The second in my series of articles devised to tick off real estate brokers<\/a> appeared in the Arizona Republic<\/i> today. (Here is a more permanent link to a longer version of the article<\/a>.) Torquing the brokers is not really my intent, just a secondary consequence. Next week we get to Ardell DellaLoggia’s issues, which may just spark a riot at the Arizona Association of Realtors.<\/p>\n

Here’s today’s article in full:<\/p>\n

The conventional wisdom in real estate is that the seller pays the sales commission to both the listing agent and the buyer’s agent. Is that really the way things work? To find out, follow the money.<\/p>\n

Imagine a closing conference. Normally, we don’t have these in Arizona. Buyers sign their documents at one time, sellers at another. Neither party need ever set foot in Arizona, for that matter.<\/p>\n

But for the sake of discussion, picture a settlement conference. Let’s invite everyone who has a seat at the table, so to speak, so we can see who pays whom.<\/p>\n

At the head of the table is the escrow officer, who will be getting paid escrow fees and title insurance premiums.<\/p>\n

Next comes the County Recorder, who will receive a recordation fee. At the next seat is the County Assessor, who will receive property tax payments. Then comes the insurance underwriter, who will get the hazard insurance premium.<\/p>\n

The seller will get a big pile of money, some of which will be passed along to the seller’s mortgage lender.<\/p>\n

The two Realtors will both get paid, of course.<\/p>\n

The buyer’s lender arrived at the table with a big satchel of cash, but the lender will be taking some of it back in the form of loan origination fees and pre-paid interest. Moreover, the money the lender brought is really the buyer’s<\/i> money. It was lent on the surety of the home and the buyer’s income and credit.<\/p>\n

In fact, everyone seated at that closing table is going to be pocketing money — with one exception.<\/p>\n

That one exception is the buyer, who pays for everything else, either out of pocket or on credit. The seller doesn’t pay the Realtor commissions — or anything else. Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The second in my series of articles devised to tick off real estate brokers appeared in the Arizona Republic today. (Here is a more permanent link to a longer version of the article.) Torquing the brokers is not really my intent, just a secondary consequence. Next week we get to Ardell DellaLoggia’s issues, which may […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[7,2,5],"tags":[],"class_list":{"0":"post-116","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-enduring-interest","7":"category-general","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":144,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/144\/the-buyer-can-and-should-negotiate-the-buyers-agents-compensation\/","url_meta":{"origin":116,"position":0},"title":"The buyer can — and should — negotiate the buyer’s agent’s compensation . . .","author":"Greg Swann","date":"July 28, 2006","format":false,"excerpt":"My phone hasn't rung yet, but my ears are already burning. My column in today's Arizona Republic: Buyer should negotiate compensation for agent. (A more-permanent link.) This is Ardell's turf, of course, although my take on The Big Picture is somewhat different. In any case, I expect to have my\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":301,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/301\/who-pays-when-seller-pays-closing-costs-the-buyer\/","url_meta":{"origin":116,"position":1},"title":"Who pays when “seller pays closing costs”? The buyer . . .","author":"Greg Swann","date":"September 8, 2006","format":false,"excerpt":"This is me in today's Arizona Republic (permanent link):Who pays when \"seller pays closing costs\"? The buyer... Not all of the phone calls I get in response to these columns are from angry Realtors. I like the calls I get from real people, rather than Realtors or brokers. Even so,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":485,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/485\/repeat-after-me-mr-realtor-what-do-you-charge\/","url_meta":{"origin":116,"position":2},"title":"Repeat after me: Mr. Realtor, what do you charge?","author":"Greg Swann","date":"September 29, 2006","format":false,"excerpt":"This is my real estate column from today's Arizona Republic (permanent link). Today should be a fun day. My editor told me that, in respose to last week's column, a Realtor called him, threatening to turn me in to the Arizona Department of Real Estate. I can't imagine what the\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":311,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/311\/fanmail-or-fanning-the-flames-mail-so-maybe-you-should-just-sit-back-and-keep-your-mouth-shut\/","url_meta":{"origin":116,"position":3},"title":"Fanmail — or fanning the flames mail: “So maybe you should just sit back and keep your mouth shut . . . “","author":"Greg Swann","date":"September 9, 2006","format":false,"excerpt":"Here's an email I got regarding this week's Arizona Republic column, detailing how the buyer actually pays the \"seller paid closing costs\":Hello Greg, I was incensed at your first article about the buyer paying for everything but I didn't feel the need to waste my time writing to you. However,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":366,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/366\/buyers-agency-at-new-home-subdivisions-there-is-an-immense-value-in-representation\/","url_meta":{"origin":116,"position":4},"title":"Buyer’s agency at new home subdivisions: “There is an immense value in representation . . . “","author":"Greg Swann","date":"September 22, 2006","format":false,"excerpt":"This is email I had from Joe Bourland, branch manager of a Century 21 office in Avondale, Arizona, objecting to my column in this morning's Republic. His arguments are not wrong, they're just beside the point. There is no possible doubt that a good buyer's agent will do a lot\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1199,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1199\/realtybots-will-make-sellers-happy\/","url_meta":{"origin":116,"position":5},"title":"Realty.bots will make sellers happy","author":"Greg Swann","date":"March 23, 2007","format":false,"excerpt":"This is me in today's Arizona Republic (permanent link): \u00a0Realty.bots will make sellers happy We talked last week about the move by Realogy Inc. to supply millions of real estate listings from its national brokerage chains to upstart Realty.bots Google Base and Trulia.com. This puts the Realty.bots on the map.\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=116"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/116\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}