In Massachusetts it is a common myth that in most cases a buyer's agent is paid by the listing broker. While it is true that the listing broker normally right the check, it is actually being paid for by the buyer. Confused? Say you buy a home for $350,000.
Buyer's Portion: 5% down--- $ 17,500
+ Financed---- $332,500
Total Buyer Portion----- $350,000
$350,000 pays for ---- Buyer/Seller Broker commission
Seller's Mortgage Payoff
Left over Profit to Seller
It seems clear to me that the buyer is paying for a commission that was negotiated by the seller. Seems a little backwards and should be presented this way to your buyers.
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