You have choice in how you wish to compensate your real estate agent. Before the change in compensation, a buyer did not have to give this any consideration: your agent was paid by the seller through sub-agency. The listing agent convinced the seller to pay both his commission and your agent’s commission and advertised that amount (usually 2% to 3%) in the MLS. You can sign a Buyer’s Representation Agreement with your agent, and not know with certainty who would be paying their commission, or how much that commission might be. With Flat Fee Buyer Brokers, you know what you are paying for our services before you get in the car to start looking at properties. There are 3 ways we may be paid:
- We Pay You (Most Common): Yes, that’s correct. If the property seller is offering a commission through the MLS, that amount will be credited against our fee and any extra will be refunded to you. On a $500,000 property, that could be up to $5,000!
- The Seller Pays Our Fee: If the seller is NOT offering a commission through the MLS, we will request a credit for our fee with your offer. If accepted, there will be no out of pocket cost to you.
- You Pay Us Directly: If there is no commission offered and the seller is unwilling to pay our commission, our fee would be incorporated into your closing statement as a closing cost. Fortunately, our fees are just a fraction of what most agents charge, so you’ll still be saving money compared to other homebuyers buying the same property.
Buying a property is a big financial commitment, usually the biggest one people make in their lives. You need to have professional representation and someone looking out for your interests.