A buyer’s agent provides a wealth of value to the buyer, but did you know that they will actually perform over 100 unique tasks over the course of a home purchase? It sounds like a lot, because it is. Real estate agents are happy to do it because it means the success of the buyer.
Here are some of the things that a Real Estate Agent will do for you:
- Research the current market
- Send you properties that fit your home search specifications
- Compare homes and give advice on prices
- Attend home showings and home inspections with you
- Prepare an offer and negotiate on your behalf
- Answer any questions you have during this process
- Help you find reliable and trustworthy mortgage specialists and other services you may need
- And many other details along the way!
There’s something you might not know. An agent doesn’t get paid until you move into your new home, but more importantly, you are not the one who pays them! That’s right. The seller pays the commission. From educating you on the market to negotiating the best possible deal for you, it’s entirely free of charge for the buyer.
It’s possible there will be extenuating circumstances that do require the buyer to end up paying the agent’s commission. This would be the exception, however, not the rule.
In the Buyer Representation Agreement (BRA), which is a written contract that establishes the authority for the real estate agent’s brokerage to represent the buyer in a purchase, there is a section that discusses the commission to be paid to the buyer’s agent.
Typically, the commission amount is stipulated by the seller and disclosed in the MLS listing (Multiple Listing Service, where all homes for sale in your area on the market are posted). Within that section of the BRA, there’s another part that might say “or as otherwise negotiated by <agent name>”. This means that there may be an occasion where the seller is offering too low of a commission to the buying side, so the buyer’s agent can ask that the buyer makes up the difference (what that amount is is relative to the specific transaction).
Another possibility of the buyer paying the buyer’s agent is in the event of a buyer entering into a private sale, but requesting the services of a real estate agent. This could be a flat fee for services rendered, like drafting paperwork or advising on market value, or a negotiated percentage of the final sale price. In a private sale situation, the seller does not have to pay any commission unless they agree to.
Again, the above situations are not typical. The general circumstances are such that the seller is the one who pays the commission to any real estate agents facilitating the purchase and sale. If you’re considering making a move or purchasing your first home, reach out to our team! We’d love to see how we can best help you reach your real estate goals and become your real estate professional for LIFE!