Is a 3% (real estate) broker fee in the normal range?

[StormRider]

Just curious. I'm looking at the papers my real estate (buyers) agent gave me and there is mention of a broker's fee amounting to 3% of the purchase price of the house. Just wondering if this is in the normal range.

Does this means if I buy a $200,000 house, I will have to pay about $6000 in addition to closing and settlement costs?

 

[mithrandir2001]

As a buyer, you should pay nothing...in most areas, at least. Generally, the seller pays 6% commission, which gets split between the buyer and seller's realtors.

You may have to pay a little fee if you have an ABR (accredited buyer's representive), but nowhere near 3%. Stay away from a realtor who wants you, a buyer, to pay them 3%.

 

[toant103]

buy a brand new house. Don't have to pay the 3%. hehehe

 

[Vic]

<< As a buyer, you should pay nothing...in most areas, at least. Generally, the seller pays 6% commission, which gets split between the buyer and seller's realtors.

You may have to pay a little fee if you have an ABR (accredited buyer's representive), but nowhere near 3%. Stay away from a realtor who wants you, a buyer, to pay them 3%. >>



This is correct. A buyer should not have to pay any real estate broker fees in order to purchase a house.
1-2 points to your lender for the new loan is normal.

 

[StormRider]

Thanks for the info. I'll go talk to her about it -- maybe I'm misreading the papers...

 

[sciencetoy]

Normally, the buyer doesn't pay a broker fee. The seller does. Why it is important to know that: if you are a buyer, the broker is working for the seller, not for you. Never believe anything the broker says. If the broker says anything that is important to you, get it in writing.

Brokers expect you to know how the system works.