What Is The Commission That The Buyers Agent Is Supposed To Be Paid
There are a number of real estate agents that are working legally in this 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 confusion on the person that is supposed to pay the buyers real estate agent. 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 agent is a person that works under a broker. Therefore the buyer works with the agent through the permission of a broker. It is contrary to the law for real estate agents to work independently. 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. Some are even regular employees that receive salaries from the brokers.
The process of payment is very long. The reason is because there are many people that are involved in the process of purchasing real estate property. There is a long process that is followed during the payment of the commission. One is that the seller of the property pays the sellers broker. In return the sellers agent is aid by the sellers broker. The third point is that the seller’s broker also pays the buyers broker. Then the buyers broker pays the buyers 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 occurs when the same agent represents sellers and buyers. In such a case the agent receives the whole fee. Some states do not allow dual agency. Thus, when seeking for the services of real estate agents they should ensure that they only hire the sole companies. Double agency is not reliable because they are representing both the clients thus there importance will be central.
The several factors usually determine commission that the agent gets. The amount ranges between 3-6% of the total price of the property. The money is usually shared between both the brokers. It is also possible for the seller to sell the property without involving a sellers real estate agency. When this happens the seller of the property should include that the owner is selling the property.