It’s kind of confusing, right? If you’re not paying your agent, who is?
The seller is…kind of.
(We’ll elaborate more on this later).
So the question becomes: Why would they work with you, for you, and with your best interests in mind, if you aren’t paying them?
Because that’s their responsibility.
It wasn’t always that way, though. It used to be that all agents were essentially working for the seller, trying to get the highest price they could for the house.
That’s changed…actually quite a while back. But the way agents get paid has not.
The seller still pays the commissions, even though the buyer’s agent is representing the buyer’s interest, not theirs.
So that sounds just as weird for a seller, right? Not really. It actually makes sense (and if not, it should in a minute).
The money comes from the equity
In order to sell a house, the owner needs to have equity. In other words, they have enough money to sell the house for a certain price, pay off any existing loans, and other costs (like real estate commissions), and still walk away with money in their pocket.
(Yes, they can sell even without equity, but we’re not getting into that here. Those are short sales. And, yes, even then the buyer’s agent gets paid by the seller, even though there’s no equity.)
It’s the buyer’s responsibility to come up with a down-payment. It would be tough for most buyers to also have to pay a buyer’s agent out-of-pocket.
So, it makes sense that even though buyers’ agents represent the buyers’ interests, that the commission still comes out of the equity of the house.
Look at it this way…
You are actually paying your buyer’s agent. If you, and your down-payment, and loan did not pay the seller the agreed upon amount, the seller wouldn’t have the money to pay the agents.
It’s your money, too, even though it looks and feels like the money is being paid by the seller.
Bottom line? Do your homework
A lot of home buyers don’t give an awful lot of thought to the agent they choose to help them buy a house. Perhaps it’s because there often isn’t a single moment of “hiring” the agent.
Maybe it’s because of the confusion and concern about committing to a buyer’s agent must mean you’d have to agree to pay them directly.
Whatever the reason is, many people just sort of bounce around to open houses, or go see houses with any old agent they come across, or go directly to the listing agent.
Don’t do any of that.
Seek out, find, and hire the best real estate agent you can find, because whomever you choose will get paid the commission offered by the seller.
So, choose well. You’re paying for that agent, as much as the seller is…just not directly by writing out a check to the agent.
Author:Stephanie Gonzalez Phone: 214-454-4646 Dated: September 7th 2017 Views: 1,145 About Stephanie: About Halo
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If I can convince Danette we may rent our home out and buy another.
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Tim and Leslie N.
"After having tried to sell our home in McKinney several different times and having dealt with several different realtors, all of which were less than desirable experiences, we finally did sell and moved to Plano to lease for a year. During the lease period, we decided to build a new home.
This time, we had the perfect realtor, Diane Tackett. What a difference having the right realtor made! We had gone through so many bad experiences with realtors. Diane was always quick to return calls and answer emails, no matter how busy she was. She was there to reassure us and was always very professional in everything she did. Unlike past experiences, I didn’t have to do the footwork for the agent. Diane was very accommodating and insisted on doing what she said was her job.
Diane went with us to every meeting we had, stepped in when needed and got things straightened out. She even got us some very nice concessions. She never deserted us, was always checking with the builder, the mortgage banker and us to make sure everything was on track. If we needed ANYTHING, she was there. Our home was completed on time as promised – but it took a LOT of pushing from Diane to get it done.
If I ever buy another home, she will definitely be the only realtor I use. And I wholeheartedly recommend both her and Joe, because I know they work well together as a team. I know you will get the same dedicated service that Harry and I got.
We love our new home and we thank Diane for helping us get there!“
Laura and Harry M.
"Diane and Joe are not only great Realtors but very good people. My wife and I were really looking to take advantage of the market and upgrade to a newer home, the only problem is we had to sell ours in the same market! And we did it! They both really worked hard to make it happen and we could not be happier with our home or our experience.
I highly recommended them both."
Heth and Danette P.
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You two were so much fun to work with and we just want to let you know how much we appreciate it!"
Krista and Jason H.
"We met Joe Kupke through our son John. Joe had helped him and his fiancé find and purchase a home. We were desperately looking for a house for ourselves. John was so complimentary of Joe that we thought perhaps he could help us find a home.
We engaged Joe to do just that. Since we are very picky we put him to the test. Joe was persistent in finding us something we would be happy with, and he did just that. Thanks to Joe we have a beautiful home that we are very satisfied with!"
John and Mary K.
"Diane is a delight to work with; I would definitely recommend her to others!
My boyfriend and I had spent several weeks searching with minimal success and we turned to her for help. She found the newest and best listings for us, and was very professional and thorough when showing. When complications arose, she didn't hesitate to step in and clear things up. She checked in continually and made sure everything was running smoothly and that we were satisfied. We are extremely happy in our new place, it is perfect for us! Thank you so much!"
"I first met Joe in 1984 when I was retained by Joe and his partners at Micrografx. During the past 25 years, I have interacted with Joe dozens of times and the experience has always been positive.
About a month ago, I found myself with a very difficult real estate situation. I needed to find someone who could help me and get the job done. Of the hundreds and hundreds of people I know, Joe is the one who got the call. I explained my situation and, with his great help and assistance, here we are 30 days later and my situation has been successfully resolved.
Joe is the one who made it happen. He is the man."
"After spending weeks looking through listings and seeing nothing we really liked, Diane was able to find the perfect place for us in a day - right after it went on the market! She made sure that we understood every step of the process and all the options available to us. When we had a minor issue with the move-in date, she stepped in and took care of everything needed to sort the issue out.
I highly recommend her services to anyone looking for a new home!"
"I worked with Joe when he was a CFO and I am now working with him as my Realtor. Joe is extremely professional and I have really enjoyed the process of buying a new house with Joe as my agent. He's extremely detail oriented and explains everything so there's full understanding of the process. This is my first experience buying a home and I have been very, very pleased with Joe.
I would and have already recommended him to others.
Top qualities: Personable, Expert, High Integrity"