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 role of a buyer real estate agent is that they help buyers to find property and also deal with the transaction process. Some people are yet to figure out on who is supposed to pay the buyers 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 payment that an agent receives from their broker after completing a deal. An agent is a person that works under a broker. Thus, the agent is supposed to get permission from the broker for them to work. IIt is illegal for real estate agents to work all by themselves without liaising with the brokers. Thus the buyer pays the broker and then the broker pays the agent. Even though agents have a different body with the brokers that must work together. 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. The seller of the property pay is the seller’s brokers. Secondly, the sellers broker then pays commission to the sellers agent. 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 agent that receives the commission.
There is also another procedure that is referred as the deal agency. This happens when the same agent represents both the buyer and the seller of the property. 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.
The amount of commission that the buyer’s agent receives is determined by various factors. The amount ranges between 3-6% of the total price of the property. The cash is then divided between the seller’s brokerage and the buyer’s brokerage. It is also possible for the seller to sell the property without involving a sellers real estate agency. In this scenario the seller should tag the house for sale by owner buyers commission agent.