If you’re thinking of buying a home, it’s natural to have questions about how real estate agents are paid. The answer is, they’re typically paid on commission. Real estate agents who represent buyers often split a 3 percent fee with their broker, and that money comes from the proceeds from the sale of the property. Ultimately, it’s up to the seller to decide how much they are willing to pay for the services of a buyer’s agent, but that amount is usually negotiable.
Most real estate agents don’t work for a salary, and that’s a good thing because it means they’re highly motivated to do a great job for their clients. That said, there are some people who cross a line–either intentionally or unintentionally–and that can create a problem for both the client and the agent. Whether you’re a buyer who’s a bit overbearing or an agent who’s overstepping boundaries, there are some simple protocols you can follow that will keep everyone happy and avoid unnecessary drama.
The first step in finding a great real estate agent is to make sure that the person you hire is qualified to do their job. For example, it’s generally not a good idea to hire an agent who hasn’t sold at least five homes. Additionally, it’s a good idea to check the agent’s credentials by asking for references from previous home buyers. If an agent refuses to provide you with references, that’s a red flag and it’s probably best to move on. Read more https://www.helpinghomesrei.com/we-buy-storage-facilities-virginia/
After you’ve found a great real estate agent, you should also be prepared to negotiate their fees. Most agents are willing to negotiate their rates and many will offer a lower rate for a buyer’s agent than they would for a seller. In addition, some agents will be able to offer a reduction in their fee in exchange for exclusivity or other concessions.
As a general rule, the home seller pays for both the buyer’s and the listing agent’s commission using the proceeds from the property sale. In NYC, for example, if the property sells for $200,000 the listing agent and the buyer’s agent will each receive a commission of $6,000.
Ultimately, it’s up to the home seller to determine how much they are willing to pay for an agent’s services, but that doesn’t mean you can’t negotiate. If you have a bad feeling about an agent or feel they’ve made a major mistake, it’s entirely reasonable to ask them to credit some of their commission back at closing.
Remember, though, that real estate agents live off commission and firing them could leave them with nothing to show for the countless hours they spent working on your behalf. For that reason, it’s important to be direct and kind when telling an agent you’ve decided not to work with them. It’s also wise to give the agent a few days to process the news before firing them.
