There are many real estate agents that are working in the country. A real estate agent is a person that helps people when they are buying real estate property. The responsibilities of real estate agents is to locate the property and bargain the cost for the buyer. There has been a misunderstanding on who is the right person that is supposed to pay real estate agents. Therefore there is need to understand the real agent buyers commission terms and rights.
Commission is the amount of money that a real estate agent receives from the brokerage after closing a deal. An a broker usually employs real estate agent. Thus, the agent is supposed to get permission from the broker for them to work. It is contrary to the law for real estate agents to work independently. As a result, the real estate agent is usually paid by the broker and not from the buyer directly. Although, agents are independent people that have licenses they must work under brokers. Some are even regular employees that receive salaries from 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. One is that the seller of the property pays the sellers broker. In return the sellers agent is aid by the sellers broker. The the sellers broker also funds 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 procedure that is referred as the deal agency. This is whereby the same agent represents both the sellers and the buyers. In such a case the agent receives the whole fee. Some states do not allow dual 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.
There are many things that affect the commission that one gets. The amount ranges between 3-6{80efbc7ec2402d30dafc230679cb14bd652c75c2254bfa93385e933b72fe84a7} of the total price of the property. The money is then divided among the seller’s brokerage and the buyer’s brokerage. There are also times that the seller chooses to sell the property by themselves without involving the services of a real estate agent. In this case the seller should mark the property for sale by owner buyers agent commission buyers commission agent.