Do a buyer have to pay for realtor commission?

First of all, I would highly recommend you hire a Realtor to help you in buying a home. There is so much to learn about this market, an agent can save you a lot of money, and you are not responsible for paying that commission. Once you sign your Buyer Agreement with the agent, you can cross out the paragraph that notes if the Seller does not pay the commission, you will be responsible to pay your Realtor. I automatically cross that out in my agreement with my Buyer's. The Seller is typically responsible for paying the Agent Commissions.
Once you find a home you are interested in, your agent can begin negotiations for you. They are well versed in typical fees paid by the buyer and the seller, and how to negotiate those contracts. They are also aware of the value of the home, what the seller is asking and how to present the offer to your advantage. I hope this helps, and I am sure you will find a Realtor you can trust!

In Texas TREC has created a representation agreement that you can essentially negotiate the terms your broker's commission (remember your agreements are with the broker not the agent). Mathew stated the "Current general" standard for how commission is written out in the agreements. However, it's a "Does the chicken come before the egg" type of overall picture in who is REALLY paying the commission. In a resale transaction, I would say yes the buyer is paying for all real estate brokerage commissions that was negotiated on the sellers side. I don't know any well informed seller who hasn't considered the true costs of selling a property and that includes the costs of representation (real estate commission), and because of that most sellers have a general number of what they need to net, anything over is just extra. So in my opinion of the overall transaction I'd say the person who is bringing all the money to the table for the transaction is paying for everything and it's just divided out accordingly to other agreements that the buyer isn't privy to see.

Hello Sakib,

Make sure you have a Realtor representing you as a "Buyers Agent". To have this in writing, they will present you a Buyers Representation Agreement to review. Part of this explains WHO pays your Realtor? In the Houston area, most listing agents and builders will pay your Buyer's agent their commission. The agreement explains what happens, on a rare occasion, that they don't pay your agent. Also what happens if you were interested in an FSBO? Who pays the Realtor fees?

Your agent should explain all fees involved. Who pays what? How much money you will need at closing, how the other parties are involved and their fees, etc. If you are not feeling comfortable with their style of communication and their ability to teach you as a 1st-time Buyer, find another experienced Realtor. Call us if we can help. Good luck!

Mark McNitt
MarkKnowsHouston.com
832-567-4357
Bernstein Realty

Good Afternoon Sakib,

Just about every item in the 1-4 Real Estate Single Family contract is negotiable, including the asking price. Depending on price point- sellers may not want to provide finish allowances or do repairs (especially in the 150s price ranges).
However, your Realtor should be able to help you maneuver through the different aspects of real estate transaction and negotiate on your behalf- not only asking price, but home repairs.
I do hope you are using a Realtor. There is no reason to go into it alone, without the help of a professional, who does it for living, full time.
Thank you,

Yvonne Chauvin- REALTOR
MCNE, CNE
Better Homes & Gardens Real Estate Gary Greene
YvonneChauvin@yvonnechauvin.com
Cell: 281-686-0143

There are no "standards" as to who pays real estate commissions or title policies in the state of Texas. It is primarily based on two things:

1. The listing agreement between the seller and listing agent
2. The buyer's representation agreement between the buyer and the agent that represents them

In regard to the title insurance, that is negotiated along with the purchase price and other terms. It can be paid for by either party (buyer or seller).

For the question about who pays commission, if the seller is not offering to pay a buyer's agent commission, then it would be determined by the agreement you have with your buyer's agent. Most buyer representation agreements have a provision that says if the seller will not pay commission, that the buyer would be responsible. That is why it is very important to have a discussion with your agent as well as carefully reading all documents before signing.

Essentially, it's extremely important to have an agent to represent you and have your best interests in mind. Your Realtor should be able to competently explain all forms and documents, and answer any and all questions you may have! If there is anything I can do to help explain further please let me know!

I would say that "typically" the seller is the one who pays commissions and title policy. Of course there can be exceptions to this depending on the property and seller's situation. As a first-time buyer having a Realtor assist you as you navigate the process is an invaluable resource. Each listing has its own particular nuances specific to the seller and property. If you represented yourself, the listing agent has a fiduciary duty to their client (the seller) and not to you which limits the information they can share with you. If you enter into a relationship with a Realtor to assist you in buying a home, they would have a fiduciary duty to you and your interests and can provide detailed information on any home and would be able to advise you. I would recommend searching "find a pro" on HAR.com to locate a realtor who has experience in the neighborhoods you are searching. Feel free to interview a few, so you find someone who is a good fit. Here is a link to assist you if you have that need https://www.har.com/realestatepro If you already have a Realtor, I'm sure they would be more than happy to answer any of your questions

Hello!

There are so many things that can happen when it comes to real estate transactions. I will say that it sellers covering the title policy is common to many of the transaction I have seen. Navigating the home buying process can be a bit overwhelming especially for first time homebuyers. Hopefully, you're working with an agent who will protect you and your interests. If you are not currently working with an agent, give me a call. I hope this helps.