It’s kind of confusing, right? If you’re not paying your agent, who is?
The seller is…kind of.
(We’ll elaborate more on this later).
So the question becomes: Why would they work with you, for you, and with your best interests in mind, if you aren’t paying them?
Because that’s their responsibility.
It wasn’t always that way, though. It used to be that all agents were essentially working for the seller, trying to get the highest price they could for the house.
That’s changed…actually quite a while back. But the way agents get paid has not.
The seller still pays the commissions, even though the buyer’s agent is representing the buyer’s interest, not theirs.
So that sounds just as weird for a seller, right? Not really. It actually makes sense (and if not, it should in a minute).
The money comes from the equity
In order to sell a house, the owner needs to have equity. In other words, they have enough money to sell the house for a certain price, pay off any existing loans, and other costs (like real estate commissions), and still walk away with money in their pocket.
(Yes, they can sell even without equity, but we’re not getting into that here. Those are short sales. And, yes, even then the buyer’s agent gets paid by the seller, even though there’s no equity.)
It’s the buyer’s responsibility to come up with a down-payment. It would be tough for most buyers to also have to pay a buyer’s agent out-of-pocket.
So, it makes sense that even though buyers’ agents represent the buyers’ interests, that the commission still comes out of the equity of the house.
Look at it this way…
You are actually paying your buyer’s agent. If you, and your down-payment, and loan did not pay the seller the agreed upon amount, the seller wouldn’t have the money to pay the agents.
It’s your money, too, even though it looks and feels like the money is being paid by the seller.
Bottom line? Do your homework
A lot of home buyers don’t give an awful lot of thought to the agent they choose to help them buy a house. Perhaps it’s because there often isn’t a single moment of “hiring” the agent.
Maybe it’s because of the confusion and concern about committing to a buyer’s agent must mean you’d have to agree to pay them directly.
Whatever the reason is, many people just sort of bounce around to open houses, or go see houses with any old agent they come across, or go directly to the listing agent.
Don’t do any of that.
Seek out, find, and hire the best real estate agent you can find, because whomever you choose will get paid the commission offered by the seller.
So, choose well. You’re paying for that agent, as much as the seller is…just not directly by writing out a check to the agent.
Author:Stephanie Gonzalez Phone: 214-454-4646 Dated: September 7th 2017 Views: 552 About Stephanie: About Halo
We understand that for many people, buying or selling a home is probably the largest i...
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting... as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.