Home Buying in 73013>Question Details

Brittanie, Home Buyer in OKC OK

I am wondering how an agent gets paid? If I have an agent showing me houses do I have to pay them for showing

Asked by Brittanie, OKC OK Mon Oct 20, 2008

me the houses? or is it only if I buy a house from them? I dont plan on skipping from agent to agent, i just dont know if im going to find a house or not and I dont know how the agent gets paid. It is our first home and we want to see places, but do we pay for that?

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The nice thing about being on the buy side is you get to choose which of the 3000+ agents in the area you use and it is free of charge. Take your time to do some research on the agents and pick the best. It's like going into court and being allowed to choose your lawyer for free! You may as well get the best and their resume will be tell-tale!
0 votes Thank Flag Link Mon Sep 8, 2014
Typically....no. Most agents are compensated through an offer of cooperation throughout the Realtors MLS service. It is most common for the seller to compensate both agents involved in a sale.
0 votes Thank Flag Link Thu Jul 5, 2012
Ask your Agent. They have an obligation to inform you. If you don't like their answer, find another agent.
0 votes Thank Flag Link Fri Mar 9, 2012
Usually the agent showing you the homes will get paid from the sellers agent of the house that you buy. The person selling the house has to pay their agent to list the home for sale and if your agent shows you the house and you buy it through them the listing agent will split their commission with your agent.
0 votes Thank Flag Link Fri Mar 9, 2012
Do not pay for anything up-front to an agent directly. Your Realtor gets paid at closing and this is between your Realtor (the selling agent) and the Seller's Realtor (the listing agent). The listing agent is who agrees to pay your Realtor through their commissions. If you do not buy a house you do not owe them anything, it just means you are an unreasonable buyer or the Realtor you are using does not know how to help find what you need.

If you signed any documents w/ the Realtor showing you houses, ensure that there are no hidden fees in that contract and if there are, ask to speak w/ the Realtor's broker that you are working with and ask why you are being charges anything more than the commission split offered by the Listing Realtor.

Hope this helps,

Josh
0 votes Thank Flag Link Fri Mar 9, 2012
Every state may have differences, for instance, in Oklahoma with full disclosure an agent can be paid by you but that is extremely rare. Compensation is guided through our MLS system where an agent puts in the agent compensation and is a binding agreement at the time of contract with the seller typically paying the commission. However, let's say you are looking for for sale by owner and that owner will not pay a commission. In that case if the deal is strong enough and better than what you have seen trhough the normal channels, you can compensate you agent for taking care of the transaction and having someone as your advocate. Many times "FISBOs" are that way because of problems either with the home, the price, or a seller that not only wants to not pay a commission, but also wants to win at your expense.
0 votes Thank Flag Link Mon Feb 27, 2012
The seller of a home pays a commission to the listing Broker per their listing agreement.
If a different Broker brings the buyer the two split the commission.
Shorthand....it comes out of the sellers proceeds.
If the listing broker has both buyer and seller that firm gets all the commission which rarely happens.
The particular realtor then is paidat closing; less the brokerage fee by the Broker he/she represents.
So the simple answer is usually no. It is paid by the seller's proceeds.

I recommend you have a written buyer broker agreement so that you not only understand the process but that your realtor can represent you, to your benefit, as a single party broker.

There may be a small fee for a transaction coordinator. It usually runs from $75 to $150 and can be paid at close. The purpose is so the realtor can have all the paperwork in the contract reviewed to protect your transaction from oversights. You pay nothing if you do not close.
I would love to help you. You may call me at 405 226 0816 or e mail homes@kathypresley.com
You may visit my website at http://www.kathypresley.com
Please feel free to ask if you have any other questions.
Web Reference: http://www.kathypresley.com
0 votes Thank Flag Link Tue Jul 28, 2009
you should have signed a state disclosure form stating who the broker showing you houses is working for. as a sellers agent or non agent they are not representing you although have to deal with you fairly etc. in this case they get paid from the listing agent at closing. Now you can hire them to be your buyer broker, this way you have someone working for you,. looking out for you and assisting you through each step of teh buying process. in mosts cases you can negotiate so it doesnt cost you anything out of pocklet as teh listing agent offers a fee to be paid at closing to a buyer agent. hope this helps.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 21, 2008
Hello Brittanie,

The agent gets paid at closing from the Home Seller. The customary way, is that both agents get paid by seller. It makes it easier for the agent if you give them all your details up front. It makes our job easier.

Ex. I am a first time home buyer(we can start letting you know about first time home buyer progarms if any are going on---save you more money, and let us know that you are not familar with the process and we can give you some idea of what is next step and so on.) Then let us know your criteria in what kind of home you are looking for (4 bed, 2 bath, must have garage etc.), what area, what your price range is, what your time frame is. The more info. we have the better we will be able to find excatly what you are looking for.
0 votes Thank Flag Link Tue Oct 21, 2008
Hi Brittanie.
In our market most sales are cooperative sales where the listing agent (agent for the seller) and selling agent (agent for the buyer) split the commission which is paid by the seller.

However, many buyers are obtaining buyer representation and entering into an agreement with the selling agent prior to beginning the search for a home. That agreement may require an upfront fee, an agreement that the buyer will pay the commission if one is not offered by the seller (like a For Sale By Owner), or a transaction fee at the time of closing. If the agent you are working with charges a fee they should inform you in advance.

Keep in mind everthing is negotiable and ask questions.
Kristyn Grewell
CENTURY 21 Goodyear Green
0 votes Thank Flag Link Mon Oct 20, 2008
Depends on if you have a buyer agency agreement with the agent or not and what it says.

If you signed a buyer agency agreement with the agent you should have a copy of it and it will tell you how the agent is to be compensated. Whether by the buyer, seller, seller's agent and/or other. The terms of the buyer agency are negotiable with the agent but most give the agent your representation regardless of how the house is procurred. Thus, meaning compensation is due when you buy and close on a property. My experience is most buyer's agents compensation terms are covered by the seller's agent and/or the seller. But, make sure you know and thoroughly understand these terms before signing. Surprises are no fun.

A lot of times I will work on good faith with a buyer (not necessarily the smartest thing to do) and hope that the buyer doesn't back door me. However, without a buyer agency agreement I cannot expect or demand legally to be compensated without that agreement in writing.

FYI- a phenominal buyer agent is invaluable.

Best of luck on your first home!
Susan Walker
0 votes Thank Flag Link Mon Oct 20, 2008
Typically, the buyers agent will be paid by the listing broker. When a house is listed, the seller makes an agreement with the listing broker to pay them and that broker in turn pays the buyers agent a share of that fee. Of course, if you are interested in a For Sale by Owner, then your agent will have to negotiate with that seller for a commission or you can pay them as well. Flat Fee brokers can be worked with in the same manner.

As a buyer, you typically don't have to pay anything out of pocket while looking to buy. If your agent wanted any upfront fee, (some do now) then it should have been brought up before you went out looking with them. So, don't worry about it. : ) Just enjoy yourselves while looking for your new home.

Good Luck!
0 votes Thank Flag Link Mon Oct 20, 2008
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