When an buyers agent has a client she is representting, how exactly does the agent get paid? I mean a listing agent would get paid my the seller upon closing, but does the buyer pay the buyers agent themselves? hows this work?
Typically the seller pays the listing broker a commission to sell the property. The listing broker agrees to split the commission with the buyer’s agent.
Generally, when a seller lists a property, he agrees to pay a commission at a given rate (most typically 6%)…
When the property sells, the commission is divided 50/50 between the “listing agent” and the “selling agent”…these monies actually go to the agents’ brokes and are divided according to the in-house agreement between the brokers and thier agents.
A typical split would be;
Listing agent: 1.5%
Listing agent’s broker: 1.5%
Selling agent: 1.5%
Selling agen’t broker: 1.5%
These percentages may vary some!
If the property is not listed with an agent (as in a FSBO, etc.), the buyer’s broker would be paid out of the buyer’s pocket unless the seller agrees to a “Realtor concession”.
Keith
I did not know that was how the breakdown worked. Thanks kdhastedt.
I’m amazed you haven’t been challenged on that yet!
That’s why I said “generally”, “are divided according to the in-house agreement between the brokers and thier agents”, and “these percentages may vary some!”…
Surely that’s enough disclaimer to get people to understand that the pie is split several ways…but not always the exact same way.
Keith