Things To Know Regarding Real Estate Agents Commission
There are a number of real estate agents that are working legally in this country. A real estate agent is a person that helps people when they are buying real estate property. The role of a buyer real estate agent is that they help buyers to find property and also deal with the transaction process. Some people are yet to figure out on who is supposed to pay the buyers agent. To get an understanding on who should pay the buyers agent ; people should understand the terms and payment of real estate commissions.
Commission is the amount of money that a real estate agent receives from the brokerage after closing a deal. A broker is the person that employs the agent. Hence, the agent must have permission from the broker in order to work. It is against the law for an agent to work directly with a client without a broker. Therefore the buyer is supposed to pay the broker who in return pays the agent. However, real estate agents are independent professionals that place their licenses under the brokers. Some agent are employees that work permanently for the brokers.
The channel of payment is usually long. There are several professionals that are in the real estate transaction process. This is the chain of payment that is involved. The seller of the property pay is the seller’s brokers. Secondly, the sellers broker then pays commission to the sellers agent. The third point is that the seller’s broker also pays the buyers broker. And finally the buyers broker in return pays the agent. In case there are two agents, there is need to determine the agent that will receive the commission. The agent that writes the offer is the one that gets the commission.
There is also another one that is known as the double agency. This occurs when the same agent represents sellers and buyers. When this happens the agent gets all the pay. Some states forbid double agency. Therefore before hiring the services of an agent, there is a need to ensure that the companies are working independently. Double agency is not reliable because they are representing both the clients thus there importance will be central.
The several factors usually determine commission that the agent gets. The amount may be 3-6% of the price of the property. The cash is then divided between the seller’s brokerage and the buyer’s brokerage. It is also possible for the seller to sell the property without involving a sellers real estate agency. In this scenario the seller should tag the house for sale by owner buyers commission agent.