What is the standard broker's fee for buying a home and how to get discounts?

Interested in buying a home in Long Island. Is the fee 6%? What if there are 2 brokers involved for the buyer and seller?

Is there any difference if I use a "broker" versus an "agent"? I've heard of services that charge less. Which are they and anyone have experience with them?

What do the full-price brokers offer that the discounters don't? If I'm looking for a new construction, is there a way to bypass the broker and go straight to the builder to avoid the broker's fee? How do I find the builder(s)?

Asked by AP 60 months ago Similar questions: standard broker's fee buying home discounts Business > Real Estate.

Similar questions: standard broker's fee buying home discounts.

The broker's fee is paid for by the seller Commissions are negotiable and not set by law. 6% is the standard in some areas, but other companies sell for less. For example, companies like Assist-2-Sell charge a low flat fee (my brokerage charges $4,995) to sell a home.As a buyer you don't need to worry about comissions, as the comission is paid for by the seller.

Some buyers think they will get a better deal if they go straight to the listing agent. This, in my opinion is a bad idea. If the listing agent also sells the house, then they get the full 6% - so you (well, the seller really) won't be saving any money.

It is important to have your own representation so you know that someone will be looking out for your financial best interest. The difference between a Broker and an "agent", also called a Salesperson is simply a matter of licensing. With a Broker's license you can have employees and open your own company, someone with a salesperson's license can hang their license with a broker, but not start up their own firm.

If you purchase new construction you will have to go through the builders sales office. They pay their sales agents so that they don't have to deal with the hassles of paperwork and inspections. Using an agent to sell their homes also reduces their liability.

Good luck with your purchase. I reccomend calling a couple brokerages and shopping around for an agent. Find someone you get along with well, you will be spending a lot of time with him/her, so make sure it's someone you feel is both competent and friendly.

Sources: I own a real estate brokerage. wesellauburn.com .

Commission is already established 1. A property that is listed for sale already has an established commission fee in the listing contract. 2.

Say the comission is 6%..Jones agency listed the property. Smith agency has a buyer for it. Jones and Smith will split the commission at closing, 3% each agency.(unless they have agreed to something other than a 50/50 split).3.

Negotiating Realtors commission. Situation: The seller has come down as low as he can on the price. The buyer has offered as much as he is qualified to do.

Let's say there is a $2000. Difference in the negotiations. You can then ask your Broker if the agencies will kick in part of the comission to put the deal together.

Some will.4. Broker is usually the full time manager of the agency/office.5. Agent may be full or part-time independant contractor working from the office.6.

Discount Brokers=exactly what you pay for. Sometimes a DIY kit.7. New Construction.

Builders generally like to build....not sell. A builder will usually hire one top real estate firm to handle his entire subdivision. Being such a volume of listings, the Realtor will give the builder a reduced commission.

Builders hate to reduce their prices BUT...you can very often negotiate 'upgrades' in finish carpenrty, appliances, landscaping, paving, etc.8. To find a builder not using a Realtor...he will be advertising in the newspaper as 'For Sale By Owner'.9. It is well worth the money to rely on a top Realtor to handle all the ins and outs of a purchase of this size.

They know real estate law, contract law and how to handle negotiations for you. Whew! Good Luck.

Sources: 22 years a Realtor .

The standard fee is around 6%. The seller and buyer pay their own fees. For Sale By Owner makes selling a home on your own easy.

We sell the most houses for sale by owner, proving our house selling strategies sell more homes than any site in home selling. Moreover, your home's selling price is determined by you, not a real estate broker who takes a 6% fee for selling your home. Mortgage Broker Fees DemystifiedIn this article we will clarify the misconception regarding fees being charged when using the services of a mortgage broker.

Q Is it true that most residential mortgages arranged by a mortgage broker are NOT subject to lender or brokerage fees? A TRUE - Where an applicant(s) can be approved for financing with a qualifying income, satisfactory credit history and net worth, there are NO lender or brokerage fees charged. To find out if you qualify, your mortgage broker will first add your mortgage payment together with one twelfth of annual property tax.

Heat and hydro payments and one half of monthly strata fees (if applicable), the total of which cannot exceed 32% of your combined household income. Your Mortgage broker will then determine if your monthly payments on other forms of financing (car loans, Credit and department store cards etc. ) combined with the aforementioned, is equal to or less than 40% of your total household income. These thresholds are referred to as "debt service ratios".

Q If I don't have a picture perfect financial situation, are there still alternatives available? A YES - Flexible mortgage products are available, almost exclusively through mortgage brokers, to meet the demands of borrowers whose financial circumstances may be slightly outside of traditional lender guidelines. These circumstances include borrowers who may have a slightly higher debt service ratio, a less than perfect credit history (e.g. Discharged bankruptcy or paid collections etc. ) or an inability to confirm income due to recent self-employment.

However, the special products available to borrowers, even with their flexibility, are approved in part, on the reasonableness of the applicant's handling of previous financial affairs. As no two borrowers are the same, applications are processed on a case by case basis. Additionally, with this type of financing, lender and/or broker fees may apply depending on the applicant's individual circumstances.

Q If I am self-employed, is it true that I may NOT be subject to lender or brokerage fees? A TRUE - Many self-employed individuals feel they will be subject to lender and/or broker fees by virtue of their source of income. The guidelines for mortgage qualification (32%and 40% debt service ratios) for self-employed individuals are the same as for an applicant who is an employee except for one difference, annual income.

A self-employed individual will be qualified based on the average of two years "NET" taxable income (three years, if the mortgage is high ratio i.e. Greater than 75% of the purchase price or appraised value), not the gross revenue of the self-employed business. Q What type of financial situation would justify a fee-oriented transaction?

A An applicant who has: * An excellent credit history but no ability to confirm income; * A circumstance where the new mortgage together with any existing first mortgage is greater than 65% of the value of the property; * Less than satisfactory income, however, has managed to re-establish credit in the last year or two; * An unsatisfactory credit history, however, all previous debts have been repaid; * Been discharged from bankruptcy one year or greater where the reason for the bankruptcy was appropriate. Q If fees are charged, are they paid in advance, i.e. "up front fees"?

A Lender and broker fees are generally deducted from the proceeds of the mortgage. A borrower may be required to pay a portion of the fee structure in advance, which is sometimes referred to as a commitment fee. If there is a fee charged in advance, ask if the fee (or portion thereof) is refundable if your mortgage application is not approved.

Policies will vary from firm to firm. Where lender or broker fees are charged, you will be provided with a borrower disclosure statement that will clearly identify the lender and/or brokerage fees being charged in addition to estimated survey, appraisal and legal fees. Furthermore, the impact of the lender/broker fees over the term of the mortgage will be disclosed as an "effective annual rate of interest" (i.e.

The rate of interest compounded one time per year). Ask your mortgage broker to explain this and other borrower rights under this form Sources: http://www.forsalebyowner.com/ .

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