Living Green Olympia: Out of the Mouth of ...

Out of the Mouth of ...

It has been interesting to try to explain to our exchange student how the real estate business works in this country (or at least what is customary here in Washington state).  One question he asked me seems to really hit the nail on the head for a needed change - he cannot understand how commissions currently work with the seller paying the agent who works for the buyer.  He kept asking me "But why does not the buyer pay the agent if the agent works for them?"  - and the only answer I could really come up with is that it is custom and is a remnant of the "pre buyer agent" real estate world - and that as an industry we don't adopt changes very quickly or easily.

Bottom line is that it really does seem like we probably will and should move to a new custom where buyer agents not only have buyer agency agreements with their buyers, but that those agreements will contain a specified compensation for that agent.  Then the listing agreement will include the specified commission amount for the seller to pay their agent, the listing agent.  So much simpler and I think it would be easier for the public to understand.  There is just something kind of confusing about telling a buyer that you represent them in the negotiations but that you will be paid by the other party to the negotiations??  Doesn't really make much sense does it? 

So how do we best move forward to fully embrace that buyer agency includes a new custom of buyers paying their agent directly with the amount of that compensation discussed and captured in the buyer agency agreement? 

 

 

                                                                           

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Nancy Conner, City Realty Inc,    360-701-1086     nancy@cityrealtyinc.net      

Comment balloon 0 commentsNancy Conner • October 02 2008 06:53PM

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