There are a dozen real estate agents that are licensed in this country. Buyers an agent is a person that represents the buyer when one is purchasing 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. Thus to answer this question there is need to get a clear understanding on the terms and payment of buyers real estate agents.
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. 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. However, real estate agents are independent professionals that place their licenses under the brokers. There agents that work permanently for the brokers.
The channel of payment is usually long. This is because many people are involved in the process before closing a real estate deal. 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 third point is that the seller’s broker also pays the buyers broker. And finally the buyers broker in return pays the agent. If at all two agents are involved there is need to find the procuring cause. The real estate agent that prepares the proposal 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. Working with the same company might bring conflicts since one’s interest are not represented well considered that it is the corresponding agency.
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. There are also instances that the sellers decide to sell their property without involving the services of a real estate agent. When this happens the seller of the property should include that the owner is selling the property.