Real estate commissions in Utah are a hot topic of conversation lately. Commissions are always great click bait and they can make for interesting headlines and news stories. Understanding just how it works can be tricky. Many buyers and sellers jump into the market without a full understanding. Let us pull back the curtain for you!
In Utah, there is no standard or set way of paying a commission. There are no set amounts of a standard commission that a buyer or seller must pay. It's always negotiable. The most common way of paying commissions in Utah goes something like this... A listing brokerage who represents a seller agrees to sell the house at a certain commission amount. A portion of that commission may be offered as cooperative compensation to pay the broker of a buyer's agent who successfully represents a buyer who purchases the home.
When working with a buyer, many agents work on the basis of having a buyer agency agreement in place. This spells out the buyer agent's fiduciary duties. It also outlines the buyer's responsibility to compensate the agent's brokerage upon the acquisition of real property. In the event there was compensation offered to the buyer's brokerage by the listing brokerage, that satisfies the buyer's responsibility to pay the agent.
Once in a while, the buyer brokerage commission being offered is less than what the buyer agreed to pay the agent on the buyer representation agreement. If that is the case, there's nothing stopping the buyer and agent making an attempt to renegotiate the payment of a buyer brokerage commission by the listing brokerage. When working with The Kennedy Group to represent you on a purchase of real estate, although not impossible, it's highly unlikely that you'll pay any real estate commission out of your pocket. Let's save your cash for the down payment and any potential loan closing costs!
Posted by Dan Kennedy on
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