As real estate agents, we sometimes take it for granted that buyers understand how real estate agents are paid. However, most first-time home buyers haven’t experienced the process yet, so we wanted to clarify some important points for those who may be unfamiliar with how it all works.
In most cases buyer representation is free of charge. It is traditional that the seller pays for the costs of all commissions of the listing agent and selling agent (buyers’ agent). This comes from the proceeds of the sale. Sellers are fully prepared to pay the cost of hiring a real estate professional to sell their home. The agent’s commission is negotiated and noted in a written contract between the sellers and the agent they select to market their home and represent them throughout the process. Most of time, the commission is an agreed upon percentage of the selling price of the home. That commission is shared or split with the agent who represents the buyers of the home.
So there is no commission cost to the buyers for agent representation. Obviously, there will be other costs involved with the home buying process such as obtaining a mortgage loan and buyer inspections ect. A knowledgeable real estate agent will be able to explain the whole process to you in detail when you are ready to make your home purchase.
You can find more information for first-time home buyers in our article, Can I Afford to Buy a Home?
~Shea Hutchinson, Realtor Associate, HomesCentralCoast.com Team