Will I Save Money If I Buy Directly From The Listing Broker?

The short answer to this question is Probably Not! When a listing agent acting through his or her broker signs a listing contract with the seller, the applicable commission or dollar amount is agreed upon in this contract. The listing agent will then offer a cooperating broker a percentage or fixed dollar amount to another agent that brings a buyer to purchase your home.
So, let us say a listing agent has a contract with a seller to sell their home for six percent. If another agent brings a buyer to purchase the home, the listing agent might give them three percent and keep three percent. If the listing agent sells the home without a cooperating broker, then they get to keep the entire six percent. The seller is still paying the same amount for the professional services they have received in either scenario. As you can see, there is no incentive for a seller to accept less than the Fair Market Value of their home.

Remember there is NO standard commission for sellers and cooperating brokers. Each listing contract is negotiated separately between the seller and the listing agent.

Why did I answer ‘probably not’ in the Question above? At times, a Variable Commission for Professional Services is used. This subject will be covered in another blog.

If the listing agent sells the home, the seller and buyer are now in a Limited Representation position and must sign a Disclosure agreeing to this limited representation. Limited Representation is another subject and will be discussed in another blog.