years of knowledge and experience and provide information that can help people understand the process and potential pitfalls. I want to make sure no one makes costly mistakes. During my 40+ years, I've been involved in thousands of real estate transactions; whether they were for buyers or sellers so you can be sure I have the background to help just about everyone. (want to learn more about my extensive real estate background? please read my bio located immediately before this chapter) Also, just so you understand, if after reading this book you would like me to represent you for a home purchase (or sale), I would be honored to.
HOW DO BUYER AGENTS GET PAID? (updated August 2024)
One question many buyers ask is, how do we get paid? That is an awesome question! Up until recently, "Buyer’s Realtors" were generally paid a portion of the "Listing Agent’s" (seller's Realtor) commission they charged their seller (which was agreed to by the seller up front at the listing appointment). The buyer's agent commission was then derived and paid from the sale price of the home. For instance, a listing agent may have charged a seller 6% of the sale price of the home and the seller agreed to offer 2.5% of that to a buyer agent as what is called a "co-operating commission". When the home sale closed, 6% of the home price was deducted from the price of the home and split accordingly to the two different real estate brokerages with the buyer's agent brokerage getting 2.5% and the listing agent brokerage getting 3.5%. (again this is just an example, every negotiated split is different based on what the sellers wanted to offer.) This method of payment basically allowed buyers to pay their agent by having it financed into the price of the home so they didn't have to come up with the money out of their pocket.
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