Essential Things To Know Regarding Real Estate Agent Commission Payment Terms
There are a number of real estate agents that are working legally in this country. Buyers an agent is a person that represents the buyer when one is purchasing 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 confusion on the person that is supposed to pay the buyers real estate 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 money that the agent receives from the sale or purchase from the total prize of the property as a result of the services rendered. An agent is a person that works under a broker. Hence, the agent must have permission from the broker in order to work. IIt is illegal for real estate agents to work all by themselves without liaising with the brokers. 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. There agents that work permanently for the brokers.
The process of payment is very long. This is because many people are involved in the process before closing a real estate deal. There is a procedure that is required in the procurement process. The the seller of the property pays sellers broker. Secondly, the sellers broker then pays commission to the sellers agent. The third one is that the sellers broker pays the buyers agent broker. Then the buyers broker pays the buyers agent. If in any case there are two agents that are involved in the transaction, there is need to figure out the agent that will go with 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 occurs when the same agent represents sellers and buyers. When this happens the agent gets all the pay. Some states are against the dual agency. Thus, when seeking for the services of real estate agents they should ensure that they only hire the sole companies. Since in dual agency, the same agents represent both parties it is hard to negotiate correctly.
There are many things that affect the commission that one gets. The amount may be 3-6% of the price of the property. The money is then divided among the seller’s brokerage and the buyer’s brokerage. There are also instances that the sellers decide to sell their property 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.