Who pays the fee of a buyer's agent?
The offer looks good. You're ready to accept it, but the buyer is using a buyer's agent (also called a buyer's broker) and wants you to pay the agent's fee.
- What does a "buyer's agent" do?
A "buyer's agent" is retained by a buyer to look out for the buyer's interests and to negotiate the best price from their point of view. As the agent who lists your house owes you complete loyalty, the "buyer's agent" owes the buyer the same degree of loyalty.
- What should you, the seller, do?
Generally you can indicate on the listing agreement whether you are willing to pay the buyer's agent. Most sellers choose to work with a broker who splits the commission with a buyer's agent even though that agent does not represent the seller's interests. This, of course, maximizes the number of potential buyers for your home. Because the listing broker already is prepared to share the commission with a sellers agent who produces a buyer, most sellers don't mind when their broker instead shares the commission with a buyer's agent.