Why do the work yourself? Let the Sales Representative do the property search for you. Buyers do not normally pay the commission payment. This is paid by the Seller through his Brokerage. When Sellers sell and close their property deal, a portion of the sale price goes to pay the commission. This commission payment pays the Listing Broker and the Buying/Selling Broker. It is shared through a Co-operation agreement. The respective Brokerages then pay their Sales Representatives.
Some Buyers think that they have to pay the commission, so they avoid signing a Buyer Representation Agreement, thinking that it will “force them to pay because they have hired a Brokerage”. The only time a Buyer would have to pay their Brokerage a commission is:
- If they want to buy a property, in which the Seller refuses to pay a selling commission. This can happen on an unlisted property.
- If they want to buy a property, that the Seller and/or listing Broker pay a co-operating commission that is less than the normal market rates. An example could be 1%, or a low flat fee.
In either case a Buyer’s Brokerage has to ad