Who Pays Commissions?
Often when I am working with buyers who are interested in purchasing Miami Beach real estate, they are unclear about who is responsible for paying the real estate commissions to the brokerages. Although this question or concern is often glazed over by many, it’s super important for buyers to understand how commission is paid and what is expected of them in advance to showing property.
Generally speaking in Miami and Miami Beach, the real estate broker’s commissions are paid by the seller.
The commission structure and how it is paid, is initially negotiated between the seller and the listing agent and this is noted on the listing agreement. Once the listing is added to the MLS, this information is listed in our MLS database. So generally speaking, a buyer’s agent should know in advance the commission prior to showing a property.
However, it’s not uncommon for a buyer to have to pay some of the brokerage commissions. Here are a few scenarios when a buyer may be asked to pay for commissions:
- Distressed properties where the seller cannot pay.
- Listings where the commissions are a little lower than what the brokerage will agree to on a transaction.
- For Sale By Owners
It’s important to understand these scenarios in advance and know if you are responsible or not. Most often if you are purchasing Miami Beach real estate, the seller will be paying for the brokerage commissions but there are times when a buyer could be asked to pay.
Copyright © By Jamey Prezzi 2011 * All Rights Reserved*Purchasing Miami Beach Real Estate, The Commissions and Who Pays?