There appears to be plenty of confusion out there with reference to just how a real estate buyers agent earns their commission. Many folks assume that the company the real-estate agent works for pays them directly. While this is true to a small extent there actually is a larger picture that really must be examined.
The very first thing you have to know is that a real estate agent works for a broker. According to the law the buyers are forbidden from directly paying the real estate agent. All monies must first go through the broker and then the agent will receive what's owed to him or her.
When you contact a real estate agent and ask him or her to show you homes that agent is spending a lot of time, cash and other resources under the impression that you are going to at last sign into a purchasers contract for a home.
O.K, so who actually pays the real estate agent even if it is through the broker? To reply to this question correctly you'll have to go all the way back to the original listing of the property. In the listing agreement between the house owner and the listing agent there'll be a section that may outline the amount of money that is going to be paid to the selling brokerage by the listing brokerage for bringing the buyer to the table. Therefore , in effect , it is the seller of the property that is paying the buying agent in order to negotiate on the buyer's behalf not the seller's behalf.
If you find that you remain a little uncertain of the way the complete process works you might want to chat to the agent you're working with. Your agent should be very happy to show you a breakdown of how things will work including who gets what money and who is paying that money. Keep asking questions and have it all explained time after time until you finally understand it all. Remember, this is a really large contract you are getting yourself into for a particularly expensive purchase. Ensure that you are doing it right because when you put your signature on the dotted line you made a commitment.
The very first thing you have to know is that a real estate agent works for a broker. According to the law the buyers are forbidden from directly paying the real estate agent. All monies must first go through the broker and then the agent will receive what's owed to him or her.
When you contact a real estate agent and ask him or her to show you homes that agent is spending a lot of time, cash and other resources under the impression that you are going to at last sign into a purchasers contract for a home.
O.K, so who actually pays the real estate agent even if it is through the broker? To reply to this question correctly you'll have to go all the way back to the original listing of the property. In the listing agreement between the house owner and the listing agent there'll be a section that may outline the amount of money that is going to be paid to the selling brokerage by the listing brokerage for bringing the buyer to the table. Therefore , in effect , it is the seller of the property that is paying the buying agent in order to negotiate on the buyer's behalf not the seller's behalf.
If you find that you remain a little uncertain of the way the complete process works you might want to chat to the agent you're working with. Your agent should be very happy to show you a breakdown of how things will work including who gets what money and who is paying that money. Keep asking questions and have it all explained time after time until you finally understand it all. Remember, this is a really large contract you are getting yourself into for a particularly expensive purchase. Ensure that you are doing it right because when you put your signature on the dotted line you made a commitment.
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This article is provided by Las Sendas homes for sale and the owners of AZ golf homes.
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