Here’s the plain and simple truth about commission costs for homebuyers.
Today I’m going to clear up a common misconception regarding how real estate agents get paid. Too many buyers don’t hire a buyer’s agent to represent them, thinking that they’ll avoid commission costs and extra fees that way. We list properties all around the area, and so many potential buyers contact us, the listing agents, directly.
If you’re buying a property, you should have an agent, and here’s why: You need someone to represent you and your best interests at all times. If you contact the listing agent, you must understand that they represent the seller’s interests. They cannot disclose any information that would adversely affect your decision to buy that particular house.
Unless otherwise agreed upon in writing between you and your buyer agent, the seller is usually the one who pays commission for both sides. The seller pays the real estate company they used to list their house, typically a percentage determined by the sale price. That company then advertises that property to all of the local brokerages and effectively says, “If you bring us a buyer, we’ll give you half of the commission.”
You as a buyer almost never pay commission. We don’t charge our buyers commission. Therefore, it makes no sense for a buyer not to hire an agent to look out for their interests.
If you have questions about this topic, or have any real estate needs we can help with, don’t hesitate to give us a call or send an email. We’re always happy to hear from you.