Archive for March 10th, 2009

Mar 10 2009

Who pays the real estate agent?

Published by Christine under Real Estate

Traditionally the seller pays the commission to the agents involved in a transaction. This is how it goes: The seller lists the property and agrees to pay a commission for the sale. That amount is agreed to between the listing agent and seller. The listing agent then offers a portion of that commission to the "selling" agent (or buyer's agent). Often the two agents split the comission 50/50, but that is up to the listing agent. The listing agent may have a 6% commission, but offer 2.5% to the selling agent. Or, the listing agent may offer more commision to the selling agent in hopes of attracting more agents to show the property.

Therefore, as a buyer, the agent you select to work with is compensated by the seller. So there's really no reason to enter a real estate transaction without an agent representing you.

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