must act as a dual agent, because impartial facilitation is required. • The listing agent cannot negotiate the lowest price or best terms for you if they are also trying to negotiate the highest price or best terms for the seller. • Earning a full commission, if the opportunity arises, may tempt the agent to coerce a deal that you might not accept otherwise
HOW REAL ESTATE AGENTS ARE PAID
The National Association of Realtors® 2017 Profile of Home Buyers and Sellers states approximately 8% of homeowners opted to put their homes up for sale in 2017 without using a real estate agent or Realtor®. A handful of For Sale By Owner (FSBO) transactions dealt with sellers and buyers who previously knew each other or were directly related; 87% of buyers chose to work with a real estate agent or Realtor®, on the buyer’s side Real estate agents and Realtors®, unlike professionals in different categories who bill by hourly rates or at the end of the project, get paid through a transaction (commission) at the end of each sale. For example, if an agent has worked with a seller or a buyer for months, they don’t get paid for the time spent if there is no transaction during that period. Agents receive a commission once the transaction goes through to settlement (closes) based on the selling price of the home. At that point, the commission is earned. The commission itself is negotiated between the home seller and the listing agent. Some brokerages may have commission
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