There’s a lot of discussion of Buyer Broker compensation going on around the RE.net, and I want to draw attention to it while I can. I have some further thoughts of my own, but I’m not sure I’ll be able to get to them today. It’s Saturday, after all. One of the reasons I’m re-thinking everything associated with buyer representation is the dreadful shortage of Saturdays in the week.<\/p>\n
Pursue these links. This is interesting.<\/p>\n
Kris Berg argues that it really is the seller who pays both agents<\/a>. (For agents Back East: In Arizona, and I believe in California and Washington, we do not have sub-agency. The buyer’s agent represents only the buyer, but is paid out of the co-broke established by the listing agent.)<\/p>\n Jeff Brown suggests dropping the veil and having the buyer pay his own agent directly rather than through the escrow process<\/a>. The key problem with that, of course, is that many buyers don’t have cash for earnest deposit, inspections, appraisal, down payment, closing costs and<\/i> a buyer’s agent’s fee. Many buyers don’t have cash for any of those things.<\/p>\n ReyEstate has a summary of the latest episode of egg-tossing from Freakonomics<\/a>. I’d be much more impressed by those boys if they actually worked in real estate.<\/p>\n Jim Duncan argues that the buyer can pay the buyer’s agent’s fee out of the buyer’s side of the HUD-1, rolling the fee into the mortgage, as it is done now from the seller’s side of the HUD-1<\/a>.<\/p>\n All of this debate is good, I think. There is no doubt that sellers have a very high degree of control over what listing agents are paid. It seems completely reasonable to me for buyers to have that same level of control over what buyer’s agents are paid.<\/p>\n < ?PHP include (\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/DCFile.php\"); ?> Technorati Tags: blogging<\/a>, compensation for buyer representation<\/a>, real estate marketing<\/a><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" There’s a lot of discussion of Buyer Broker compensation going on around the RE.net, and I want to draw attention to it while I can. I have some further thoughts of my own, but I’m not sure I’ll be able to get to them today. It’s Saturday, after all. One of the reasons I’m re-thinking […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_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":""},"categories":[3,6,5],"tags":[],"class_list":{"0":"post-519","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-marketing","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":519,"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":1283,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1283\/who-pays-the-buyers-agent-once-weve-divorced-the-commissions-we-can-stop-worrying-about-it\/","url_meta":{"origin":519,"position":1},"title":"Who pays the buyer’s agent? Once we’ve divorced the commissions, we can stop worrying about it","author":"Greg Swann","date":"April 9, 2007","format":false,"excerpt":"Joke Number one: Q: If you came upon the Buddha in the guise of a hot dog vendor, what should you say? A: Make me one with everything. Joke number two: Q: Top Drawer Listing Agent, why do you charge a 7% commission to list a home for sale? A:\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":550,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/550\/smashing-the-idols-understanding-market-value-in-full-context\/","url_meta":{"origin":519,"position":2},"title":"Smashing the idols: Understanding market value in full context . . .","author":"Greg Swann","date":"October 17, 2006","format":false,"excerpt":"Nominate me Ikonoklastes, for I am come to raze this temple of half-baked ideas. I want to come back to the MLS later in the week, and I have a deep need to expose the motivations of brokers, as these are distinguished from the motivations of lesser licensees. But for\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2181,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2181\/a-consumers-guide-to-the-divorced-real-estate-commission-will-the-negotiating-their-buyers-agents-compensation-make-buyers-more-practical\/","url_meta":{"origin":519,"position":3},"title":"A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?","author":"Greg Swann","date":"November 8, 2007","format":false,"excerpt":"Part II: How buyers can finally take a seat at the grown-up's table When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, \"How much do you charge?\" A motivated seller is done with the house, and now all\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":487,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/487\/butterflies-might-be-free-but-home-buyers-pay-for-real-estate-advice-whether-they-know-it-or-not\/","url_meta":{"origin":519,"position":4},"title":"Butterflies might be free, but home-buyers pay for real estate advice — whether they know it or not . . .","author":"Greg Swann","date":"September 29, 2006","format":false,"excerpt":"Ardell raises some questions at Rain City Guide about my column in this morning's paper on negotiating the buyer's agent's commission. I'm going to address some of her remarks here, but my fullest statement on the topic is quite a bit more comprehensive. In the newspaper, I get 350 words\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2179,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2179\/a-consumers-guide-to-the-divorced-real-estate-commission-why-buyers-and-sellers-each-paying-for-their-own-representation-is-the-most-significant-reform-that-can-be-made-today-in-residential-real-estat\/","url_meta":{"origin":519,"position":5},"title":"A consumer’s guide to the divorced real estate commission: Why buyers and sellers each paying for their own representation is the most significant reform that can be made today in residential real estate","author":"Greg Swann","date":"November 7, 2007","format":false,"excerpt":"Part I: How we got into this mess in the first place Can we be straight with each other? I'm not a soft and subtle kind of guy, and my working assumption is that you are sick to death of being hustled -- handled -- lied to. 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\n<\/p>\n