With the $8,000 tax credit available to first time homebuyers as well as extremely low interest rates and a large inventory of homes to choose from, it is a GREAT time to purchase! As all have replied in their messages, the seller typically pays the commission to the selling agent. This fee is established when the seller lists his home on the market for sale and is published to all agents on the multiple listing service. This is the service where most real estate companies, who are members, post their listings so all real estate agents, who belong, can view the information. It's a great way for the seller to market to all companies and agents. The selling agent fee is part of the property information posted and the seller has agreed to pay that fee. For in depth information regarding purchasing a home your best bet is to choose a qualified REALTOR and have a counseling session. There you will learn the buying process and all it involves. If you have any questions please do not hesitate to contact me. I'll be happy to meet with you and discuss the process!

Typically, as stated below, the seller pays the buyer's agent fee and it is already being offered as part of the sale. In rare cases, the seller will not pay your fee (for sale by owner). In that case, you may be asked to make sure your agent get paid. Be sure to discuss the 'what if' situations with your agent to cover all circumstances. It is most likely that you will not have to pay and you can also benefit from having your own agent represent you.

For your costs associated with closing, that is negotiable also and in most cases today, agents are able to negotiate getting that paid for you. It is possible that you will not have to spend any money at all, it depends on the types of loans you qualify for and what is negotiated in the contract. Feel free to contact me if you like. Best of luck.

Newhomebuyer:
The agents here have answered your questions correctly and extremely well. It is true that the commission incurred within a transaction is paid by the seller, not the buyer of the property.
As far as the seller paying costs at the time of closing, I ask that this be considered as part of the contract presentation and always discuss this option and its pros and cons with my clients. I work up the numbers to see if it would benefit their financial position over the length of their loan and in the short-term also make closing funds easier for them to secure. Many times this simple request on a contract means the success or failure of the deal for my client, so I do not overlook this option for them. The only way to know if this is a possibility in your purchase (or if it truly would be a benefit to consider), is to speak to a professional lender and be pre-qualified.
Please be advised that there is a time limitation to the First-Time Home Buyer's Tax Credit benefit provided through the stimulus package. You must close by the end of November, 2009, to secure the benefit (which can be up to $8,000). Keep that in mind when you are timing your property search and closing, as it is very important.
I would be happy to answer any questions you might have regarding your upcoming purchase and your mortgage needs. If I can be of assistance, please contact me here at trulia.com, through my website, or email (gene@chicagobancorp.com). Through my company, Chicago Bancorp, I am fully capable to assist you within Virginia (and multiple states across the country), and would look forward to doing so.
Gene Mundt, Professional Mortgage Banker http://www.genemundtmortgageblog.com
Chicago Bancorp

Congratulations on being a first-time buyer! You have come to this at a most fantastic time! Plenty of homes to choose from, great interest rates, first-time buyer tax credit, sellers willing to help with closing costs...these all make this the perfect opportunity to buy your first home.

You do have some great questions. And it sounds like you are putting some thought into what it means to buy your first home. Being an Accredited Buyers Agent, I do recommend using a buyer's agent not only when buying your first home but any time you buy a home. What many buyers don't think about is that the listing agent represents the seller, and by agreement must represent the seller's best interest. So, who has the buyer's best interest in mind?

Having your own representation, someone to look out for you, will get you through the process with only one thing for you to worry about...who am I going to invite to my housewarming party?!

Yes, generally the way things work now the commission paid to both the listing agent and the buyer's agent come out of the seller's side of the transaction, but that's only one piece of the puzzle. It's a great idea for first-time buyers to sit down with a buyer's agent and talk about the process. Sure, you can get some information from friends and family that have been through the process, but unless you do this every day, there's no way to know everything that goes on. Sit down with someone that can answer all your questions. It doesn't cost anything to sit down and talk! That way there will be no surprises.

I would be more than happy to sit down with you and talk about the process...please don't hesitate to contact me. You can find out more about me and what I can do for you on my website.

Joleen Bolander, REALTOR, ABR, ASP
Rose & Womble Realty Co.
757-560-5708 or
jbolander@roseandwomble.com

You have received some great advice. To sum up the seller pays the commission for the buyer's agent. It is also recommended that you sign a buyer's brokerage agreement with the agent you chose to represent you, so you can receive the highest representation. You can also request for the seller to pay some or all of your closing costs. If you have any questions I can be contacted at RobinSellsHomes@cox.net

I think you received plenty of excellent guidance - good luck.

Hi New Homebuyer:
In today's market the seller pays the fees to the buyer's agent. You can have the benefit of representation wihout the cost. You definitely need a good agent to represent you, especially being a first time buyer. There are many issues that you will want your agent to be on top of for you during the transaction, ie. price negotiation, home inspections, termite inspections, walk thrus, etc.

I have represented many first time home buyers and it would be my priviledge to be of service to you. Also, don't forget you will be entitled to the $8,000 first time home buyers credit. What a bonus!!! I will be happy to provide all of the details to you at any time.


Nelene Gibbs, Realtor, e-Pro
William E. Wood & Assoc.
757 672-3232
mail to: nelene@homesbynelene.com

Hi there,

This answer can all depend upon each agent and their requirements. Typically though, the sellers contracts out an agent to sell their home for a commission, part of the commission goes to the listing agent, and the other part goes to the buyers agent. For example, if I listed Mr. Sellers property for 6%, if the listing agent finds the buyer too they get the full 6% if no other arrangements have been made, but if a buyers agent brings a client, then they get 3% and the listing agent gets 3%. This is an example of course, but is a common example. By doing such, the agents are cooperating in order to sell one anothers properties and each client is represented by their own agent. If you call the agent on the sign as a buyer, you will only be a customer to them, never a client, their client is the seller.. Your buyers agent will represent you to assist you through guiding you in getting financing, preparing you with how to buy a home, how much money you may need upfront for the transaction, searching properties for you, doing comparables on properties you are interested in (thus looking to see if the home is priced appropriately before you put in an offer) negotiatiing all for your best interest, client confidentiality, showing you homes and taking care of all the paperwork and details to get you to closing and finally handing you the keys to your new home.
Often I meet people in open houses that say they don't have agents and wonder, why in the world would you not hire youre own agent?? It's a matter of just not understanding how things work.
When can you be charged by a buyers agent though, well when you back out of contracts of course for no reason but to change your mind..you can be charged for an agents time and even required to pay commissions..that's rare but can happen if agent has spent an extensive amount of time with a client. Agents work for free literally until you close on the home, they are paid out of the settlement at closing by the seller generally. Almost everything an agent does for a client up til the closing is really for free..if the home doesn't sell, the agent gets no money, if you don't buy a home, the agent gets no money.. If you are floating around without your own agent, you defiantely might want to think twice about..you are only a customer to every home you go that's listed, that agent represents the seller. Do you need a buyers agent, of course, the buyers agent will represent you.

If you're not currently working with a buyers agent, I'd be more than happy to assist and guiding you through the process. I'm a full time Realtor, Accredited Buyers Representative.. Please feel to contact me at any of the avenues below for any additional real estate questions or to start working toward your first purchase.

I'd love to be your Buyers agent and Realtor :)

Lisa Burrow
Realtor, Accredited Buyers Representative, nationally Accredited Home Stager,
RE/MAX Allegiance
Virginia Beach, VA
email - lisaburrow@remax.net
phone - 757-650-9560

Because the real estate companies in the MLS have agreed to share their listings and commission, any agent from any company can sell any listing...all the agents technically are representatives of the seller...
UNLESS you as a buyer sign a Buyers Agent agreement with an individual agent. The good news is, the seller (in 99% of the cases) will pay your agent's commission. So, there really is no downside to choosing to work exclusively with a buyers agent.
I hold the ABR (Accredited Buyers Agent) designation from the National Association of Realtors, have received specific training to represent buyers.

As your Buyers Agent, I will:

1. Represent you throughout the entire real estate purchase process;

2. Work diligently to expose you to all homes which meet your criteria for neighborhood, size and style, community amenities, and price range;

3. Assist you with identifying a suitable lender, and guide you through the loan application process;

4. Negotiate with listing agent or property owners on your behalf;

5. Assist with all necessary inspections and preparation for settlement;

6. Maintain confidentiality of all financial and personal information you entrust to me.

Also, if you were not already aware, if you purchase a home in 2009, and are a first time buyer, you will receive an $8,000 federal tax credit.

Please contact me, or any Realtor of your choice, if you are ready to begin your home search.

Mike Grandelli
REALTOR,ABR
Rose and Womble Realty
757-573-5373 http://www.homesinVB.com

You do not pay any fees. The seller pays the commission. Call me at (757)652-8587. I would be happy to represent you through the home buying process! Terri layne-Beigel, Broker, Ocean Real Estate