Hi Cyber --
Thanks for your note.
Buyer brokers are not required to base their fees on the arrangements established between listing brokers and owners, but many do because of the practical reality that lenders and loan programs often will not authorize payment for their fees. For example, VA -- which is generally very progressive -- does not allow the payment of such fees.
As to specific fee numbers, you'll notice I don't have any in my article. I recall HUD saying in certain documents that 6 percent is a "standard" fee, a judgement which is not theirs to make.
As to what a fee might be, it cannot be less than enough for brokers to earn a reasonable profit and it cannot be more than a competitive marketplace will allow. I think those boundaries vary by location and the array of services provided.
We now have menu-of-service and discount brokers, so consumers plainly have options. They also have the option of buying and selling by themselves. When I look at the marketplace today I see far more choices than in the past, something which is good for everyone.
All the best.
Peter G. Miller
OurBroker(r)
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