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July 22, 2019

Who Pays the Real Estate Agent?

Many people who are looking to buy a home decide to forgo contacting a real estate agent for fear of the financial burdens. Quickly, however, these people come to realize that the solo track to finding a dream home is a long, dark path that only leads to confusion.

(Purchasing out of state? Here is what you need to know!)

Instead of doing research, these potential homebuyers assume that the cost of a real estate agent would be on them – but in the majority of cases, this is incorrect.

The lesson? Before you decide to willingly suffer the hardships of an unassisted home search, ask yourself (and us!) one question…

Who Pays the Real Estate Agent?

Real estate agents do not get paid the same way most professionals do. A good agent will work tirelessly for hours on end, but they don’t get paid hourly. In fact, they only get paid if and when a transaction is made, and their commission generally comes from the seller.

That being said, a realtor’s commission could be seen as the responsibility of both parties. You see, their commission comes as a percentage (generally 6% to be split between the listing agent and buying agent) of the agreed purchase price. That means that when a seller is determining the price of their home, they will take into consideration this 6% commission rate (and until you close on the home, and pay up, the agent will not get paid).  

Still, most buyers go into their home search with a strict budget in mind, and if they find a home that meets that budget, they won’t be paying any extra hidden fees for hiring their agent.

What Does a Real Estate Do to Earn That Commission?

The seller’s 6% actually buys you a great amount of invaluable services. First and foremost, a real estate agent brings knowledge of the surrounding home prices, taxes, neighborhoods, financing options, mortgage companies, appraisers, inspectors, and much more. They can even assist you in determining your own home budget!

In addition to the expert knowledge, real estate agents spend time and money researching the homes nearby that fit your needs. They schedule out all activities involving your home purchase and assist you in taking care of all the paperwork necessary. Can you imagine doing all of that by yourself? That’s a full-time job!

You’ve Got Nothing to Lose (and SO Much to Gain)!

Searching for a home should be an exciting time in a person’s life, but far too often, it is surrendered to stress. Don’t let this happen to you. Get the help you need to find your dream home. Contact ARC Realty Today!

Category Tips for Buying, Tips for Selling

Tags: Montgomery

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