• Your agent can’t advise you as thoroughly when they must act as a dual agent because impartial facilitation is required. • Your listing agent cannot negotiate the best or highest price for you if you are dealing with the best and lowest terms for the buyer. • If the opportunity arises, earning compensation from both buyer and seller may tempt the agent to coerce a deal you might not accept otherwise. • Your agent may inhibit all access to your listing through buyers with agents. Please clarify essential details with your agent beforehand to avoid surprises or missteps in a dual agency sale. You can do this using an exclusive buyer or listing agreement.
HOW REAL ESTATE AGENTS ARE COMPENSATED
The compensation structure for real estate agents can vary, especially with recent August 17, 2024, regulatory changes that offer more flexibility and transparency. Agents are required to disclose their compensation arrangements clearly in the buyer agreement. This ensures that you, as a buyer, understand precisely how your agent will be compensated and can make informed decisions. Compensation has always been negotiable and remains negotiable today.
Possible Compensation Structures
Recent regulations now allow for more varied compensation structures. Buyers must proactively understand the costs associated with their agent's services and may need to factor them into their home purchase budget. Here are some of the ways a buyer’s agent can be compensated:
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