Do real estate brokers get a commission when they are buying a house themselves?
March 20, 2012 6:07 AM Subscribe
Do real estate brokers get "discounts" on homes they purchase?
posted by letahl to Work & Money (19 answers total) 1 user marked this as a favorite
My understanding is that the standard commission on homes listed for sale with a real estate brokerage in my area is 6%, and that a listing broker generally splits this 6% in half with any outside real estate salesperson who finds a buyer.
My question is whether brokers, in effect, get a 3% discount on homes they purchase, because they get to "keep" their half of the commission?
Example: Sally is a independent broker. She makes an accepted offer for $200,000 for a house listed by Tom, a real estate salesperson in another brokerage. Usually, if Sally were representing a buyer, she would get $6,000 for the trouble (half of the 6% commission). Since she is representing herself instead, does she still get the $6,000?
I am using an independent broker as a potential purchaser to make the question simpler. I'm in Wisconsin.