I'm buying a home and chosen a real estate agent and am now reviewing the buyer agency contract. One thing in particular about this contract has stood out to me. The buyer's commission is 3.5% stated as so:
Broker’s Fee, paid by Buyer to Broker, is as follows:
(a) In a purchase transaction with a seller represented by a real estate broker the fee is 3.5.% of the sales price OR
$2,000 , whichever is greater, AND $295
(b) In a purchase transaction with a seller who is not represented by a real estate broker the fee is 3.0% of the sales
price OR $2,000, whichever is greater, AND $295
which I think is high for the Pittsburgh area and a house in the $300,000 range, I expected 2.5-3.0%. I asked about this and they said that the sales commission is actually driven by the listing agent and is always split 50/50 seller/buyer and is always paid by the seller (maybe that part is PA specific). Meaning when an individual lists their house for sale they agree on the commission for both parties with their listing agent. In which case I don't understand why then this is even in the contract? Your thoughts?