RealTown's RealTalk

Mark Jay does not really address the issue in his explanation. I think
most buyer agents, and certainly most EBAs do address what they will be paid in
their buyer agency agreement. And if the listing agent has offered 2.5% when
the seller has agreed that his/her buyers agent will be paid 3.5%, then the
buyer is responsible for the 1% difference. But Mark Jay fails to go on to
explain how the buyer has two options. First the buyer can fund the 1%
difference out of his or her pocket. Or, the buyer can fund the 1% difference by
increasing his or her offer to purchase the property by a like amount. Or the
buyer can state in his or her offer that the price being offered includes
the 1% for a total of 3.5% to be paid the buyer's agent.

The buyer's agent is not the one asking for the seller to include this in
the offer. The buyer's agent may have explained to the buyer how they can
handle the payment of the 1% difference, by explaining the three options, but it
is solely the buyer's decision as to how they will handle this. Frankly the
buyer's agent really does not care as long as he or she is paid the amount
agree upon.

NAR has, for at least 12 years now, accepted that it is ethical in all
respects for the buyer to request that the buyer's agent fee be included in the
price being offered.

I hope this clarifies the issue for those who might otherwise be confused.

Tom Hathaway

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