Im buying a home just how does my agent get paid anyway?

A buyer has the benefit of working with an agent at no cost to the home buyer as the buyers agent gets paid through the seller and their listing agent when the sale is final.

 

It goes like this…. The listing agent is guaranteed a percentage of the sale from the seller, and in turn the listing agent contractually agrees to pay a portion of that percentage to whichever agent brings the buyer that purchases the home.  So when you used to hear Haskins say “only 2 percent to sell”, what they weren’t telling you in that ad is that there is also a percentage you must offer to the buyer’s agent in addition to that 2% (I’ve heard their 2% has increased by the way).  

 

So it costs you nothing to work with an agent. However, all of us agents have an etiquette that we hope a buyer will follow; it’s the “behind the scenes” peeves so I will share two of them with you in the name of all agents out there…

 

  • If you are already committed to working with an agent, please don’t call and ask another agent to show you property.  It’s inconsiderate to the agent that may have just drove 30 miles with the hope that they can create a new business relationship with you and your existing agent can show you properties or arrange for someone in their absence.  Agents have a strong code of ethics that does not permit an agent to recruit another agent’s client so it’s not only frustrating as it wastes our time, but we feel a discomfort knowing we’re flirting with someone else’s client.

 

  • If you are going to ask an agent to show you more than 2-3 properties, have yourself pre-qualified for a loan.  It’s better to begin shopping in a price point that fits your qualifications than to waste your and your agent’s time in a price point that doesn’t fit.  Your agent has lenders they can recommend and typically you can get pre-qualification in just a day or two at the most.

 

If you are interested in hearing what agents have to say “behind the scenes” you can visit most any real estate blog such as activerain.com.  There are many great war stories being shared out there!

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