Breaking down fee to buyer’s agent

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Q: What is the fee of a homebuyer's real estate agent? --Vicki A: This question comes up only a fraction of the times it ought to, but is a very smart question. The answer is not so simple; it depends on the particular facts of your situation and your transaction. In the vast majority of cases, the fee paid to the buyer's broker or buyer's agent is whatever share of commission the listing office is offering. When a seller and listing agent negotiate a listing agreement, they negotiate two payment terms.First, they agree on the total percentage of the purchase price that will be paid to the listing broker as the commission. Then, they include what portion of that commission will be shared with a cooperating, or buyer's, broker. So, for example, it's quite common for the listing agreement to specify that the commission will be 5 percent of the purchase price for the home as agreed upon by buyer and seller, and for the listing broker/agent to agree to share half of that -- or 2...