Are commissions negotiable in real estate? Who pays commission on a home sale?

The Barr Team First Time Homebuyer Info, Info for Home Buyers, Info for Home Sellers, Info on Real Estate Transactions 0 Comments

In this quick video Henry Barr explains the ins and outs of commissions in a real estate transaction…

Hi this is Henry at ReMax Properties of the Summit with The Barr Team here is Frisco, Colorado. Today I am going to talk about one of my favorite subjects…commissions!  🙂  Who pays, what they are typically and so forth. One of the first things I want to say about commissions…there are no “set” commission in Colorado or any locality. So if anybody tells you “the standard or set commission is”…that’s a misnomer and actually it’s a violation of law. So there is no set commission, every company is free to choose what commission rate they want to charge. So the question is who pays commission? Commission is normally paid by the Seller. A Seller with the help of the Broker can set the rate of the commission. The commission can vary depending on what the two parties decide, but it is not normally paid by the Buyer or by the Buyer’s Broker. It is a fee paid by the selling Broker and it is normally split with the Buyer Broker if there is a separate Buyer Broker involved, but it is not usually ever a Buyer charge. It can be there are some unusual, or not common, cases where a Buyer can pay the commission if they are working with a Buyer Broker. They could atypically pay a commission through a Buyer Broker, that would be the unusual circumstance, normally that Buyer Broker is co-oped with the selling Broker. I hope that makes sense and if you’re a Buyer don’t worry about paying the commission, that’s a Seller charge.