How does the buyer pay a real estate agent?

I'm going to be buying a house in the next six months and am preparing to call real estate agents. I've never owned a house (or even lived in one, for that matter), so I have no idea how they get compensated. Do they make a comission on the sale, or do they get paid by the buyer? I don't know if I'll end up with a "buyer's agent" or a "seller's agent", I'm assuming the buyer pays a "buyer's agent", however. Please let me know!

11 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Their commission comes from the seller's agreement with their agent. Typically, it's 6% of the sale price.

    The seller's agent and the buyer's agent will then share 3% each. (Actually - the 3% goes to the Agent's Broker - and the Agent gets 1-1/2 % or other amount depending on their agency agreement)

    The money is paid out at closing by the Title Company.

    Who is actually paying - that sort of depends? If the seller wants $100,000 for his house, and the Agent'sl cost is $6,000, he prices the house for $106,000. So if you pay the full price, you paid the Agent. If you pay $103,000, then you both shared the price of the agent. If you only pay $100,000, then the seller get's to pay everybody. It's called "negotiation".

    • Login to reply the answers
  • Anonymous
    1 decade ago

    The agents (both seller's and buyer's) are paid a commission on the sale from the seller. The commission can range anywhere from 2 to 6%, and is some agents will negotiate if you ask.

    Since the agent you talk to will represent you (the buyer), they are the "buyer's agent". The seller's agent is the agent who represents the person who owns the house you're buying. All of the commissions and fees should be laid out in the contract that you sign when making the purchase (including the legal fees, closing costs, inspection fees, etc).

    Shop around when looking for an agent. Just like with a lawyer, accountant, dentist, or any other professional, some agents are much better than others -- more contacts, better leads for homes, and better negotiating ability with the sellers. Also, although the agent will usually be pretty thorough in selecting properties for you to see, don't be afraid to do your own research and find some on your own as well. There's nothing wrong with finding a property online and telling the agent you want to see it.

    • Login to reply the answers
  • 1 decade ago

    As a buyer, you absolutely should have a buyer's agent. However, the seller of the house pays a real estate commission and typically the commission is split between the buyer's agent and seller's agent. However, you should be aware that when you sign with an agent (yes even as a buyer's agent) that if you want to see property with reduced or non-existent commissions (FSBO, For Sale By Owner) they may be asking for YOU to make up the difference so they get to 3% of the sales price (a typical commission being 6%, but it is NOT carved in stone).

    • Login to reply the answers
  • Kerri
    Lv 4
    4 years ago

    The seller pays the commission, but the cost is transferred to the buyer in the price of the house. It is hidden in the cost of the house. The two agents split the commission. The listing agent gets 2/3 and the buyer's agent gets 1/3, but it's negotiable. You normally don't pay your agent a commission.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    Normally, a real estate agent is only paid from one party--usually the seller. Most agents won't charge you to go look at different homes because the sellers are paying the commission to their agents, and those agents in turn split the commission with the buyer's agent. Also, be weary about signing a buyer's agency agreement. There may be a clause in the agreement that says you will pay them if you buy any property--with or without their help.

    Feel free to email me with any other questions you may have, or if you need help finding a local Realtor.

    Melanie Miller

    Associate Broker/REALTOR

    EXIT Advantage Realty

    575-434-0300

    • Login to reply the answers
  • Anonymous
    5 years ago

    This Site Might Help You.

    RE:

    How does the buyer pay a real estate agent?

    I'm going to be buying a house in the next six months and am preparing to call real estate agents. I've never owned a house (or even lived in one, for that matter), so I have no idea how they get compensated. Do they make a comission on the sale, or do they get paid by the buyer? I...

    Source(s): buyer pay real estate agent: https://biturl.im/BMrgQ
    • Login to reply the answers
  • 1 decade ago

    The final source all of this info is your realtor, so you should ask them to be sure. But in my area, the seller pays the realtor's commission, and that is split between the buyer's and seller's agents and agencies.

    Interview at least 3 different realtors before you select one, though. This is a major transaction - you want a person working for you that you trust, and that you can work well with. Get recommendations from friends and co-workers, go to open houses to interview the realtors there, and ask for references from the ones you consider. Follow up on those references, too. For a first time buyer, I'd recommend you go with an agent from one of the larger residential realtors in your area. They didn't get to be that big by not doing the job well.

    I second the recommendation to sign a "buyer's agent" agreement with your realtor. They still will be paid by the seller. In my area, the realtor that the buyer brings to the deal is legally representing the seller, unless you have this agreement. It seems crazy to me to go into a deal worth this kind of money with your closest adviser working for the other side.

    • Login to reply the answers
  • 1 decade ago

    Okay, this is en easy one. The seller of the home pays commission to thier own agent - the sellers agent. Any agent representing the buyer is the buyers agent. The sellers agent will split the commission with your agent, you dont pay commission. Happy house hunting!

    Source(s): Been a Realtor for 6 years
    • Login to reply the answers
  • 1 decade ago

    Hi Sara,

    Buyer's real estate professional is usually compensated by the sellers. It may be wise to check your buyer's brokerage agreement if there is clause indicating otherwise.

    • Login to reply the answers
  • maamu
    Lv 6
    1 decade ago

    The seller pays the real estate company commission. In this area it is 7%.

    The buyer pays nothing (well, except for the house they bought--lol)

    • Login to reply the answers
Still have questions? Get your answers by asking now.