How This Realtor in Beaverton Gets Paid

By
Real Estate Broker/Owner with BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time Licensed State of Oregon

Beaverton RealtorHow This Realtor in Beaverton Gets Paid

It's the same way this Realtor in Portland gets paid . . . HA HA HA

But seriously . . .

I just read an article on MSN Money: "A Who's Who Guide To Buying Your First Home

As a Beaverton real estate agent, working with a lot of first time buyers, I go over the "basic" steps of buying a home.  One of the topics of discussion is:  How I will get compensated when acting as the buyers Beaverton real estate agent.

The article I read makes a few statements which are not accurate, and often quite misleading.  As a Realtor in Beaverton, I do NOT get paid by the sellers.

To quote from the article:  "Considering that a buyers agent usually doesn't cost a cent, it doesn't make much sense to go without one, Wolf and Bray say. A buyers agent makes a commission that the seller pays, though this sometimes is worked into the final sale price. If you buy a home without an agent, you could save on the purchase price, but it's not a certainty."

WRONG . . . WRONG . . . and WRONG!

Well, this IS correct:  . . . a buyers agent doesn't cost the buyer.  And it sure doesn't make much cents sense for a buyer to go without a Beaverton real estate agent

The other "quotes" are so off the mark.

Here's why:

  • MYTH #1:  "A buyers agent makes a commission that the seller pays" -- WRONG!!

The LISTING AGENT negotiates with the homeowner AKA Seller.  The commission negotiated is between the listing brokerage and the Seller.  This Realtor in Beaverton has NOTHING to do with that.  It's CONTRACTUAL between Seller and the listing brokerage. 

  • MYTH #2:  ". . . though this is sometimes worked into the final sale price" -- WHAT?!??!?

Commissions are worked into the final price?!?  They have got to be kidding me.  The listing agent goes to the property to meet the owner AKA seller.  The listing agent prepares comps and CMA's (Comparative Market Analysis) to price the property -- acccording to the CURRENT MARKET!!  The list price is NOT based -- never was based, and never will be based on anything OTHER THAN: what the current market values are pricing out at.  There is NO SUCH THING as having a commission "worked into the final sale price."  A current market value is discussed with the owner AKA seller.  Once a current market value is established, the listing agent, typically, prepares a NET SHEET and deducts the mortgage pay off amount, taxes that may be owed, commissions . . . and then seller will have a rough idea of what they will NET* from the sale. 

As a Beaverton real estate agent specializing in EXCLUSIVE Buyer Agency . . . I actually do know how a buyers agent is paid.  It's NOT from the seller.

In my next post How This Realtor in Portland Gets Paid I'll finish up with my analysis of how a buyers agent gets compensated.  Hopefully, dispelling the myth of "the seller pays." 

As a Realtor in Beaverton . . . working exclusively as a buyers agent . . . I get a little miffed (ticked off, annoyed, P.O'd) when I read these types of articles which are CONTRARY to how a real estate agent in Beaverton is compensated.


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*With the current market including short sales, sometimes there is a "negative" net to the owner/seller.
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Buyer Focused ~ Buyer Results

 

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner

Direct: 503-810-7192 | BuyersAgentPortland.com | Carla@BuyersAgentPortland.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Christine Smith 06/22/2011 10:09 PM
Topic:
Home Buying
Location:
Oregon Washington County Beaverton
Groups:
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Tags:
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Ambassador
1,489,010
Tammy Lankford
Lane Realty - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

It's no wonder the consumers have such crazy ideas when the media is reporting crap that is wrong.

June 22, 2011 02:38 PM #1
Rainer
107,800
Donna Malone
Waterfront, Luxury, Family, Affordable, Cottage, Deals - Bridgewater, NS
Homes and Property for Sale Nova Scotia

Carla, As a buyers agent, you are well acquainted with the details of your profession....

June 22, 2011 02:47 PM #2
Rainmaker
521,973
Maria Morton
BHG Real Estate - Kansas City Homes - Kansas City, MO
Kansas City Real Estate 816-560-3758

Carla, that is how it is handled in Kansas City as well. Thanks for posting a correction to one of the many errroneous reports put out by the national media.

June 22, 2011 03:10 PM #3
Rainmaker
338,296
Navona Hart
Real Living Cornerstone - Farmville, VA
Real Estate Agent, Farmville Virginia Homes & Land

Carla, I have bookmarked for a reblog!  I love your style here and it is perfectly written.

June 22, 2011 03:13 PM #4
Rainmaker
676,262
Gene Mundt
www.genemundt.com - Joliet, IL
Mortgage Lender - Chicago/Chicagoland Mortgages

Carla:  This is a point that should definitely be straightened out for consumers.  They are seemingly very confused about this.  And don't get me started on my viewpoint of the media.  Not  only are they often very wrong .. have outrageous opinions ... but they are incessant.  I made the comment in the not too distant past that I'm beginning to wish they shut down the TV like they used to at 1 AM in the morning.  Show the flag.  Play the National Anthem.  Shut it down.  At least they'd have fewer hours in which to misinform and opine.

Gene 

June 22, 2011 03:19 PM #5
Rainmaker
285,346
Nick Zappa
Eagles Wings Realty - Montrose, CO
Professional treatment of our clients, brings awes

Hey Carlabeen a long time since I touched base.

Hope you are doing well out there.

June 22, 2011 05:17 PM #6
Ambassador
754,062
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Wow, sounds like a good blog for the seller side too!  This is a fallacy that the "seller" pays the commission.  Can't wait to see your follow up Carla!

June 22, 2011 06:44 PM #7
Ambassador
539,143
Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
Vernonia Realty - Vernonia, OR
"Your Gateway to the Lake" Birkenfeld Oregon

Yeah, missy--I'm gonna have to hit Suggest and re-blog it in the future, too....so good you are at

Just the Facts Ma'am!

June 22, 2011 08:30 PM #8
Rainmaker
502,828
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

O. M. G.! as my kids would say!  I cannot believe all the misconceptions in that article.  Great correction - suggested & a reblog is also coming!

June 22, 2011 09:35 PM #9
Rainmaker
1,598,401
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

OMG is right..the misconceptions in that article are unbelievable! Thanks for setting the record straight. Many buyers are out there listening to this crap and feel they can go it without a buyer's agent and save 3%. I must say there are some hungry agents that allow this to get a sale. Suggest this post!

June 23, 2011 07:55 AM #10
Rainmaker
1,253,644
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

Hi Tammy . . . no wonder indeed!!

Hey Donna -- even if that means I know a thing or two about "listing" property ;-) LOL

Hi Maria . . . I'm sure "how" a listing contract is established is similiar in most areas and "how" a market price is established is similiar as well!  Thanks for the comments re your neck of the woods!!

Hey Navova -- thank you!!  Re-blog any time.

Hi Gene -- thanks, and too funny!!  Shut the TV down, and show the flag.  LOL

Hey Nick . . . OMIGOSH, I was just thinking about you the other day! 

Hi Brenda -- yes next post will be about the "co-op" fee split!!

Hey Gayle -- thanks for the edit, and comments!!  ;-)

Hi Christine . . . thanks for the re-blog!!  I'm glad I'm not the only one that said O.M.G. to the article.

Hey Dorie -- Many buyers think that they can get a "deal" with the listing agent.  Listing agent is under contract with the sellers, and their fiduciary duties should be with them, not the buyer looking for a "deal."  Thanks for the comment!!

 

June 23, 2011 12:43 PM #11
Rainmaker
296,982
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

Great article, Carla. It is frustrating, to say the least, when the media puts out the wrong information. I have seen buyers think that they are getting a better deal by working directly with the listing agent and they end up being out-negotiated and overpaying as a result.

June 23, 2011 02:05 PM #12
Rainmaker
660,853
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Buyers seem to always think their agent's commission is built into the price, and that they, the buyers are paying for it in terms of higher price. Then these buyers turn around and ask their agent to rebate part of their commissions to the buyers.

Still can't understand why these same buyers would never ask other service providers to discount their price or to rebate part of their salaries to the buyers. Did YOU ever ask your accountant to rebate part of his fee to you? Heck you won't even ask your housekeeper or yardman. Yet, they think it's perfectly fine to ask their realtor?

 

June 24, 2011 01:31 AM #13
Rainmaker
1,253,644
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

Hi Dan & Amy . . . the motivation in dual agency isn't helping the buyer, it's that scoop of double dip ice cream LOL

Hey Pacita -- The price is the current market value at least that's how I do comps.  I'm with you about the rebates.

June 24, 2011 11:56 AM #14
Rainmaker
208,892
Andi Grant
310-508-4354 | FirstTimeHomeBuyerRealEstate.com - Long Beach, CA
First Time Home Buyers Los Angeles, Long Beach

Carla BRAVO on quite a few things regarding this article *wink*

June 24, 2011 03:26 PM #15
Rainmaker
1,253,644
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

Hi Andy . . . wink back at ya!!  And check out How This Realtor in Portland Gets Paid (double wink)

June 24, 2011 03:31 PM #16
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Buyer Focused ~ Buyer Results
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