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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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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  1. Christine Smith 06/22/2011 10:09 PM
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Topic:
Home Buying
Location:
Oregon Washington County Beaverton
Groups:
The Lounge at Active Rain
Addicted to Active Rain
BananaTude
Bartender, Make it a Double
Realtors®
Tags:
realtor in beaverton
beaverton real estate agent
beaverton realtor
beaverton agent
how real estate ageents are paid

Comments 16 New Comment

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Rainmaker
295,831
Dan and Amy Schuman
Luxury Home Specialists
Howard Hanna Real Estate Services

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
Rainmaker
657,393
Pacita Dimacali
Alameda/Contra Costa Counties CA
Alain Pinel

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
Rainmaker
1,203,303
Carla Muss-Jacobs, Principal Broker/Owner
Buyer Focused ~ Buyer Results
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time

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
Rainmaker
207,342
Andi Grant
First Time Home Buyers Los Angeles, Long Beach
310-508-4354 | FirstTimeHomeBuyerRealEstate.com

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

June 24, 2011 03:26 PM
Rainmaker
1,203,303
Carla Muss-Jacobs, Principal Broker/Owner
Buyer Focused ~ Buyer Results
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time

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

June 24, 2011 03:31 PM
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Rainmaker
1,203,303

Carla Muss-Jacobs, Principal Broker/Owner

Buyer Focused ~ Buyer Results
Planning to Buy a Home? Let's Chat . . .
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Additional Information

Author Bio: Carla Muss-Jacobs is the Principal Broker/Owner of Buyers Agent Portland, LLC an Exclusive Buyer Agency representing Buyers in the Portland Metro real estate market since 1999.

The Sellers have their own agent ~~ Why don't you have yours?  

Carla Muss-Jacobs practices the TRUE FORM of Buyer Agency ~~ Exclusive Buyer Agent.  Her office/brokerage never takes listings and never respresents the Seller.  Exclusive Buyer Agency is the BEST form of legal real estate representation a Buyer can have.  There is 100% Buyer Representation - !00% of the Time.  There are NO CONFLICTS OF INTEREST and there is no possibility of ever having YOUR Buyer Agency comprised.  When buying a house -- it's important to know who is working for you!!