Question about realtors - Compensation to Broker percentage

[promposive]

Looking to buy a first home, have been looking at two different realtors to use. I have asked to see their buyer's agreement/contract.

From my understanding, sellers typically pay 6% commision to their realtor, and then the broker gets half of that, and the sellers realtor gets half. 6% split to each realtor involved. First question, is this correct?

The two agreements are pretty similar, and the compensation to broker section is exactly the same except for the compensation hand written in to the ___ sections.

The section's text:

Compensation to Broker. Buyer agrees that Broker earns the agreed upon compensation when, during the term of this agreement, Buyer or any person acting on Buyer's behalf, acquires an interest in any property, or enters into an agreement to acquire a property, substantially conforming to the general description contained herein. Compensation to be paid to broker is as follows:
A. For MLS-listed properties, Broker will seek compensation from the listing broker pursuant to the terms of the MLS of which the Broker is a participant. Compensation shall not be less than ___% of the purchase price.

B. For property NOT listed on the MLS, Broker will seek compensation from Seller pursuant to a written agreement. If Seller refuses into such agreement, Buyer agrees to pay Broker ___% of the purchase price.

Buyer agrees to cooperate with Broker to secure this payment from Seller and/or Seller's Broker. If Broker is unsuccessful in negotiating all or part of the fee, Buyer agrees to pay Broker the balance of the fee from the Buyer's own funds. Buyer understands and agrees that the payment of the Broker's fee in whole or in part by the seller should be construed to mean that Broker is an agent of the Seller.

The first realtor has 3% written in for A, and has a line through the entire section B text.
The second realtor has 7% written in for A, and has 0% for section B.

How does the second realtor plan on getting 7% if typically they only get 3%? I'm guessing we are going to get stuck with the other 4%, right?
So I emailed him and asked him this question, and his reply is this.. word for word:

You pay nothing. We can change to 6. I have always put 7 because some foreclosures pay that. You will pay me nothing. The seller will pay me. We will change to 6. Tks.
Sent on the Sprint® Now Network from my BlackBerry®

But I can't take his word from email right? If I sign his agreement, I must believe the other 3-4% is coming out of my pocket.

What should I do? Am I misinterpreting this section?

 

[Cal166]

Buyer should never pay anything. It's always btw the two brokers on how they want to split the commissions.

EDIT: Agents are dime a dozen, find another if you don't like their terms.

 

[promposive]

Buyer should never pay anything. It's always btw the two brokers on how they want to split the commissions.

EDIT: Agents are dime a dozen, find another if you don't like their terms.

But isn't the text in this agreement saying that I will be paying if they don't agree to give him 7% of the commission (of which will probably be only 3%, meaning I'll have to pay 4% out of pocket) ?

 

[Capt Caveman]

Find another realtor.

 

[spidey07]

That sure is worded in the say you are interpreting it. I wouldn't sign. You are never supposed to pay any agent fees as a buyer, make sure the agreement you sign says so.

 

[rivan]

Find another realtor.

This.

Basically, they're trying to say if they find you a house that's a FSBO or whatever, they'll make even more. Shady.

 

[edro]

That is standard (6&#37. Why would a realtor work for you for free? (Assuming you find a FSBO that doesn't want to pay a buyer's agent fee)

 

[Slew Foot]

I learned when i was looking for a house NEVER to sign ANYTHING with a buyers agent. Their commission will be detailed in the offer letter you put in a house. Signing something beforehand only sets you up for trouble. There's a billion real estate agents out there, find someone else.

 

[promposive]

This.

Basically, they're trying to say if they find you a house that's a FSBO or whatever, they'll make even more. Shady.

Wouldn't MLS listed mean non FSBO?

 

[MikeyIs4Dcats]

in many states the standard commission is 7%.

As a buyer, you pay nothing unless you buy and FSBO and the seller refuses to pay the commission, then you are responsible.

You can negotiate a commission, but do you think your realtor is going to work harder for you or the guy paying a full commission?

 

[MikeyIs4Dcats]

Wouldn't MLS listed mean non FSBO?

Not any more....there are agents that list FSBO on MLS for a flat fee.

 

[promposive]

I learned when i was looking for a house NEVER to sign ANYTHING with a buyers agent. Their commission will be detailed in the offer letter you put in a house. Signing something beforehand only sets you up for trouble. There's a billion real estate agents out there, find someone else.

Good to know

 

[promposive]

That is standard (6%). Why would a realtor work for you for free? (Assuming you find a FSBO that doesn't want to pay a buyer's agent fee)

I don't think you read the post

 

[edro]

I don't think you read the post

Ah, you're right.

A should be 3% MAX!

GO with the other realtor that lists 3%.