Who Pays The Buyer’s Agent?
Who Pays The Buyer’s Agent?
If you are planning to purchase a house in the near future and, in order to avoid any complications, have decided to hire an agent to guide you through it, a buyer’s agent is the type you should be looking for. Most people are only aware that a buyer’s agent is paid a commission. In such cases, due to lack of information, many buyers hesitate to hire an agent because they do not know who is actually responsible for paying the agent and on what terms.
Now, to know about how payments are made to real estate agents, one must first know what a commission is and how a commission is transferred to an agent.
HOW IS COMMISSION DIVIDED
In the case of buyer’s agent, they are further paid by the seller’s agent. The broker presents the selling agent with a fixed amount of commission that the seller pays according to the seller’s agreement terms. The seller’s agent further divides the commission amongst himself and the buyer’s agent.
The ratio in which the commission is divided between the seller’s agent and the buyer’s agent is not fixed. It can either be equal or the seller’s agent can choose to keep more for himself.
Special Cases
However, there are cases in which the owner chooses to sell the house all by himself. Thus, if he sells the house without any help from a third party, no agent or broker is involved, and no commission is decided or offered by the seller. In such a case, if you choose to hire an agent, you will have to pay for the agent yourself.
Thus while choosing or hiring a buyer’s agent, make sure you go through the seller’s agreement’s terms and the broker involved in order to avoid any confusion that may occur when it comes to paying the agents.
