WHO PAYS YOUR AGENT?
A common question I get from first time home buyers is “how do you get paid for the awesome service you provide?” I’m not a fan of the term ‘commission’ because I think it takes away from the service realtors and brokers provide. I am not trying to “sell” you a house for a commission. I look at my role as that of a consultant. My role is to guide you through the home purchase process to a successful outcome and to stay with you after your close as your connection to anything home or neighborhood related.
To net it out, the buyer does not pay a commission fee to be represented in a transaction, the fee is paid by the Seller client. An over simplified outline of the fee structure is noted below:
The commission/consultation fee is negotiated between the Seller and the Seller's (Listing) agent, and that amount is usually paid by the seller as follows:
- The Listing agent's Brokerage Firm collects a fee from the Seller at close of escrow
The Listing agent Brokerage Firm then pays a percentage of the fee collected to the Listing Agent who represented the Seller in the sale of their home
- The Listing agents Brokerage pays a fee to the Buyer’s Agent Brokerage Firm
The Buyer’s Agent Brokerage Firm then pays a percentage of the fee collected to the agent who represented the buyer in the purchase of their Real Estate commissions are traditionally paid at the close of escrow from the Seller's proceeds. Real Estate commissions are traditionally paid at the close of escrow from the Seller's proceeds.