How Does A Real Estate Buyers Agent Earn Commission?
There seems to be a lot of confusion out there in regards to just how a real estate buyers agent earns his or her commission. Many people presume that the company that the real estate agent works for pays them directly. While this is true to a little extent there really is a bigger picture that must be inspected.
The first thing you need to know is that a real estate agent works for a broker. According to the law the purchasers are restricted from directly paying the property agent. All monies must first go thru the broker and then the agent will receive what is owed to her.
When you contact a real estate agent and ask him or her to show you homes that agent is spending a lot of time, cash and other resources under the impression that you are going to at last sign into a purchasers contract for a home.
Okay, so who really pays the real estate agent regardless of if it is thru the broker? To respond to this query properly you will have to go all of the way back to the first listing of the property. Within the listing agreement between the homeowner and the listing agent there will be a section that will outline the amount of funds that's going to be paid to the selling brokerage by the listing brokerage for bringing the purchaser to the table. Therefore , actually it's the seller of the property that's paying the purchasing agent so as to barter on the buyer's behalf not the seller's behalf.
If you find that you are still a little unsure of how the whole process works you may want to talk to the agent that you are working with. Your agent should be more than pleased to show you a break-down of how things will work including who gets what money and who is paying that money. Keep posing questions and have it all explained over and over till you ultimately understand it all. Remember, this is a huge contract you are getting yourself into for a very expensive purchase. Make sure that you do it right because once you put your signature on the dotted line you have made a commitment.
The first thing you need to know is that a real estate agent works for a broker. According to the law the purchasers are restricted from directly paying the property agent. All monies must first go thru the broker and then the agent will receive what is owed to her.
When you contact a real estate agent and ask him or her to show you homes that agent is spending a lot of time, cash and other resources under the impression that you are going to at last sign into a purchasers contract for a home.
Okay, so who really pays the real estate agent regardless of if it is thru the broker? To respond to this query properly you will have to go all of the way back to the first listing of the property. Within the listing agreement between the homeowner and the listing agent there will be a section that will outline the amount of funds that's going to be paid to the selling brokerage by the listing brokerage for bringing the purchaser to the table. Therefore , actually it's the seller of the property that's paying the purchasing agent so as to barter on the buyer's behalf not the seller's behalf.
If you find that you are still a little unsure of how the whole process works you may want to talk to the agent that you are working with. Your agent should be more than pleased to show you a break-down of how things will work including who gets what money and who is paying that money. Keep posing questions and have it all explained over and over till you ultimately understand it all. Remember, this is a huge contract you are getting yourself into for a very expensive purchase. Make sure that you do it right because once you put your signature on the dotted line you have made a commitment.
About the Author:
This piece of writing is offered by Las Sendas homes for sale and the owners of AZ golf homes.