I could tell they were trying to factor my fee into what their overall housing buying budget would be,(Did I tell you I love these people?) and it occurred to me that this is a pretty common question.
Who pays the Realtor?
The seller pays the commission as part of the contract between the broker and the homeowner.
The seller hires a broker to market and sell the home and agrees to a fee- traditionally, 6% of the sales price. This broker then uses a portion of this money to entice other brokers and agents to bring their buyers.
When the home sells the broker representing the seller gets 6% of the sales price and then pays a portion of this, often half, to the broker representing the buyer.
So, nothing out of the buyer’s pocket?
Not directly. No one is going to ask you to cough up dough to pay any part of the Realtor’s fees.
Wait just a darn moment. I know you. You are now thinking- “since I don’t have to pay, it doesn’t matter who I use as my Realtor.”
Buster, that is such wrong headed thinking I don’t even know where to start.
It is just the opposite. Since you don’t have to pay, you can afford to get the very best Realtor in town! Here is what a truly skilled Realtor can do for you:
- Keep you from buying the “wrong” house
- Sniff out homes that are not on the market
- Anticipate problems and help you overcome them to your advantage
- Suggest areas or homes that you don’t know about
- Get to the seller’s true bottom line through negotiation skills
This is a huge financial decision. Don’t leave anything to chance.
* image from drlizbit