Commissions When a Buyer and Seller Use the Same Real Estate Broker

by Fran Bailey, Downtown Chicago Realtor on May 26, 2007 · 0 comments

in Home Buying Tips,Home Selling Tips

I received an email from a reader, Pete, this week asking about commissions when the listing agent and buyer’s agent both work for the same real estate broker. Pete wondered if the commission the seller pays would be adjustable in such a situation. Mostly likely, no, for several reasons, Pete.

  • The real estate broker still has the same amount of work for each side of the transaction.
  • If the real estate broker’s commission is reduced, then the agents’ commissions will be reduced. It wouldn’t be fair to pay each agent less because they both work with the same real estate broker.
  • This sets up an unfavorable situation for buyers working with an agent with another real estate brokerage. Let’s say such a buyer and a buyer represented by an agent with the same real estate broker as the listing agent both offer the same amount for a home. The buyer with an agent in the same real estate brokerage as the listing agent has the advantage because the seller will net more with a reduced commission.

    • Note, this is not the same situation as dual agency when the same agent represents both the buyer and seller. For my thoughts on dual agency read my post “Be Wary of Dual Agency with Your REALTOR®”

    ABOUT THE AUTHOR

    Fran BaileyFran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More

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