Real estate Who pays a real estate agent?

Sammyesx

Active member
Home shoppers pay little or no fees to an agent to buy a home.

Here’s why:

For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer.

Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing may include advertising expenses such as radio spots, print ads, television and internet ads. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale.

Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t pay their agents.
 
Real estate agents and brokers typically don't charge buyers and sellers by the hour. Instead, they take a cut of the sales price—in the form of a commission.


The contracts buyers and sellers have with their agents determine the agents' commissions. The real estate fee is often split evenly between the buyer and seller agents, although a contract could stipulate that one agent receives more of the commission than the other.
 

A K Rao

Active member
I have given my piece of land on lease to the builder and the agent who represented and talked behalf of me with the builder got the commission from me after the completion of the deal, Maybe he might have got some token money or some bonus tip from the builder which is a general practice. But in general the person whom a dealer represents gives commission to him/her.
 

Jecsad2

New member
Home shoppers pay little or no fees to an agent to buy a home.

Here’s why:

For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer.

Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing may include advertising expenses such as radio spots, print ads, television and internet ads. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale.

Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t pay their agents.
I only pay them to dinner etc. The commission comes from the seller to the agent.
 

Jasmine

VIP Contributor
Real estate agent normally earns commission from the seller. Since the buyer is already paying money to the buyer, he is not liable to pay the agent. Since the seller receives money, he is liable to pay the commission. In my country, the standard commission rate for the brokers is 3-5 percent. But some brokers are believed to earn as much as 20 percent commission. In my place a lot of people have become rich just by brokering the real estate deals. Sometimes brokers earn more than the investors.
 
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