Are real estate agents paid for representing the buyer?
My wife and I were working with a realtor who showed us some of her own listings, but we ended up buying from the listing agent of another firm and I've felt guilty about it since. Would the agent have been paid for the purchase of our house if we bid on it through her even though she wasn't the listing agent? If so, how is she paid?
- LandlordLv 71 decade agoFavorite Answer
You should feel guilty! And poorer too! She would have been able to negotiate a better price for you! The listing agent literally was contractually obligated to bleed you as much as possible.
The cost to the seller was the same. In this case the agent received a 6% commission on the sale. If you had not screwed your agent the two split the commission.
She worked hard for you, and likely spent MANY hours looking for a house for you. She did not earn a dime.
However, in your defense...you state that she showed her own listings. If that is all she showed you she is not a very good agent. Your perfect home may not have been one of her listings, her aim should have been to find you the home you were looking for, not simply sell a listing of her own.
- 1 decade ago
The agent does get paid, but only after a sale is closed. This means that all the time she's showing you something, she doesn't make a dime.
You shouldn't feel bad. If you had bought her own listing, she would make the full commission, which is about 5% usually. What is bad practice, however, is people who use an agent, find a place, then close the deal with a friend of theirs or another agent, who usually throws them a few bucks for their referral.
The latter is also illegal and it can be stopped with Buyer Representation contracts, but most agents opt not to use one and instead go on the honor system.
I know what can happen because it happened to me when I was starting out.Source(s): I'm a Realtor.
- Expert8675309Lv 71 decade ago
You should feel guilty, you not only screwed your Realtor, you screwed yourself.
First, the listing agent is working for the SELLER of the home you bought, and unless you signed a buyer's agency agreement where the listing agent disclosed to be YOUR dual agent...ANYTHING AND EVERYTHING you tell the listing agent, she MUST communicate to the seller...and can use that information to negotiate a better deal for the SELLER.
Second, if you signed a buyer-agency agreement with the FIRST Realtor....she can now sue you for the commission...b/c that is a contract.
Third, Did the listing agent state that she was giving you a 3% discount on the property you bought because you didn't have a Realtor of your OWN? Of course she didn't....b/c she is going to POCKET THE FULL 6% COMMISSION by selling her own listing.
Fourth, Now you have no one working FOR YOU when you have an inspection, appraisal, apply for a loan, go to the closing with you to make sure things were right for YOU...and guess what the best part is? YOU PAID THE SAME PRICE!!!!!! Isn't that great? Paying for a service you aren't getting?????
Do you know if you paid a fair price? Did shepull comparables to help you offer the LOWEST price possible for the property? Do you know how long the sellers had the property and what they paid for it? Did you know how much negotiating room there was? Did someone run a check for you to see if building permits have been pulled in the last 5 years that would indicate a major repair? Did she check zoning around surrounding areas to see if it was going to stay the same so not to adversely affect your property value later? Is this listing agent going to recommend you an inspector....that is probalby someone that SHE works with all the time....and who is certain to provide a glowing report in HER favor? Is SHE going to find you a home warranty company...that will be the cheapest on the planet for HER seller...and probably won't pay if you have a claim anyway?
These are all the things YOUR Realtor would have done for you...but the listing agent who represents the SELLER...doesn't have to...again, EVEN THOUGH YOU PAID A FULL 6% COMMISSION.
Fifth...AND HERE IS THE BEST PART!!!!! Do you realize now how UNETHICAL of a listing agent you are working with??? The FIRST QUESTION she should have asked you is if you were already working with someone....and if you told her the truth, she should have told you that you needed to see the home through YOUR agent....if she didn't, and showed you the house directly....then she will throw you under the bus any day of the week...because that is an UNETHICAL business practice.
YES, THE FIRST REALTOR YOU WORKED WITH would have been paid if you had given her the opportunity to work for YOU. THE SELLER PAYS HER!!!!!!!!!!
All you did is allow for the listing agent to get 6% commission instead of BEING REQUIRED to split it with your agent....not only did you pay the same, but you get NONE of the representation, NO ONE working for you.
- 1 decade ago
Hi Ian W,
Yes, your buyer's agent would have been compensated even though you purchase from a different real estate company. Your buyer's agent should have explained this to you in the beginning.
What is done ... is done. Moving forward, a referral from you would be appreciated by your buyer's agent.
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- Anonymous1 decade ago
The buyers agent typically gets about 3% and the seller's agent typically gets about 3%.
- Anonymous1 decade ago
THey get commision once the sale has been made.
- edLv 71 decade ago
They will tell you that, but they lean to the one who pays the comission.