It’s kind of confusing, right? If you’re not paying your agent, who is?
The seller is…kind of.
(We’ll elaborate more on this later).
So the question becomes: Why would they work with you, for you, and with your best interests in mind, if you aren’t paying them?
Because that’s their responsibility.
It wasn’t always that way, though. It used to be that all agents were essentially working for the seller, trying to get the highest price they could for the house.
That’s changed…actually quite a while back. But the way agents get paid has not.
The seller still pays the commissions, even though the buyer’s agent is representing the buyer’s interest, not theirs.
So that sounds just as weird for a seller, right? Not really. It actually makes sense (and if not, it should in a minute).
The money comes from the equity
In order to sell a house, the owner needs to have equity. In other words, they have enough money to sell the house for a certain price, pay off any existing loans, and other costs (like real estate commissions), and still walk away with money in their pocket.
(Yes, they can sell even without equity, but we’re not getting into that here. Those are short sales. And, yes, even then the buyer’s agent gets paid by the seller, even though there’s no equity.)
It’s the buyer’s responsibility to come up with a down-payment. It would be tough for most buyers to also have to pay a buyer’s agent out-of-pocket.
So, it makes sense that even though buyers’ agents represent the buyers’ interests, that the commission still comes out of the equity of the house.
Look at it this way…
You are actually paying your buyer’s agent. If you, and your down-payment, and loan did not pay the seller the agreed upon amount, the seller wouldn’t have the money to pay the agents.
It’s your money, too, even though it looks and feels like the money is being paid by the seller.
Bottom line? Do your homework
A lot of home buyers don’t give an awful lot of thought to the agent they choose to help them buy a house. Perhaps it’s because there often isn’t a single moment of “hiring” the agent.
Maybe it’s because of the confusion and concern about committing to a buyer’s agent must mean you’d have to agree to pay them directly.
Whatever the reason is, many people just sort of bounce around to open houses, or go see houses with any old agent they come across, or go directly to the listing agent.
Don’t do any of that.
Seek out, find, and hire the best real estate agent you can find, because whomever you choose will get paid the commission offered by the seller.
So, choose well. You’re paying for that agent, as much as the seller is…just not directly by writing out a check to the agent.
Author:Stephanie Gonzalez Phone: 214-454-4646 Dated: September 7th 2017 Views: 550 About Stephanie: About Halo
We understand that for many people, buying or selling a home is probably the largest i...
Thank you for taking part in the Halo experience. Our plan is simple--Learn--Work--Share. This is the motto we use when serving our clients, our agents, and most importantly our community.
I have had the pleasure of practicing real estate in the DFW area since 2002. That's not where I started to learn about the business. I first learned real estate with a paint brush in my hand at the ripe old age of ten years old. I was lucky enough to experience firsthand "sweat equity" while working with my father, mother and little sister to help restore rental property in Southern California. What started as fond family memories of my youth turned into a love of an industry, and a passion for the people I found there. I truly believe that our prime purpose as a real estate propfessional is to learn from, serve tirelessly, and share advice with the PEOPLE who are living in the homes we sell.
Our Halo Agents share that passion for people as well. We serve our clients using the latest technology, years of industry experience, and proven systems for success. You may have read about Halo's success in Forbes Magazine, Texas Monthly, D Magazine, the Dallas Business Journal among others. Built on a firm foundation of belief in service and strong business practices, Halo Group Realty is one of the fastest growing real estate brands in the country.
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How fast did your agent respond to your questions: 5 out of 5
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None really, the issued around the closing on the house we sold had nothing to do with he or Jenny, they were wonderful. It just made us apprecaite having agents, lendors and title companies that are all top quality. We will use Britt every time.
Britt is an expert in the market, and was able to guide the process or both buying and selling a house, navigating rates and pricing and is a great advocate on our behalf. He was responsive and his office was on the ball every step of the way. We have known and used Britt before and will continue to every time. He makes a difficult process as easy as possible, and adds levity when needed. We appreciate his time and dedication to our transactions (and Jenny) and refer him to everyone we know.
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